Indian Bank And Ors. vs IFCI Ltd. And Ors.

J.M. Malik, J

This order shall decide the joint application moved by IFCI Ltd. and Technology Development Board, respondent Nos. 1 and 4 in this appeal, with the prayer to pass appropriate direction to the Indian Bank and Punjab National Bank to release the balance sale consideration along with interest accrued thereon, lying with it in favour of applicants so that the same may be distributed amongst the applicants in agreed ratio and may be utilized for its righteous intended cause with this appellate Tribunal. Vide the impugned order dated 3.7.2009, the learned DRT accepted the S.A. filed by IFCI Ltd. and set aside the sale of assets and properties of M/s. Usha India Limited, respondent No. 7 herein, in favour of M/s. Murthal Tanks and Vessels Pvt. Ltd. (now known as M/s. Om Shivay Real Estate Private Ltd.), respondent No. 2, vide sale notice dated 7.12.2006. The learned Trial Court also held that the sale certificate dated 5.2.2007 issued in favour of M/s. Murthal Tanks and Vessels Pvt. Ltd. stood cancelled and Indian Bank and Punjab National Bank were directed to return the amount deposited by respondent No. 2 within two weeks from the date of the said order, along with interest, if any. M/s. Om Shivay Real Estate Pvt. Ltd. was also directed to hand over the possession of the premises in question to the Authorized Officer of Indian Bank within a week from the date of receipt of copy of the said order. Aggrieved by that order, Indian Bank and Punjab National Bank have preferred the present appeal.

In the application it has been averred that the secured asset was sold for a total consideration of Rs. 29,93,01,000/- and that the appellants have realised the entire claim from the sale of the secured assets, but even after the realization of their entire claim, Rs. 8.11 crores is still lying with Indian Bank and Punjab National Bank as the balance sale proceeds and interest has further accrued thereon. It is indisputable fact that both the applicants, namely, 1FCI Ltd. and Technology Development Board are secured creditors of the borrower company. Consequently it is prayed in this application that direction be issued to the appellants, Indian Bank and Punjab National Bank, to release the said amount lying with them so that the same may be distributed amongst the applicants in agreed ratio and may be utilized for its righteous intended cause.

It is argued by the Counsel for the applicants that the applicants have prima facie a good case as there is no dispute that the applicants are secured creditors of the borrower company. However, the applicants are suffering from irreparable financial loss as they have still not received their share from the recovery lying with Indian Bank.

As a matter of fact, vide order dated 17.2.2010 passed by me I had disposed of a similar application moved by IFCI Ltd., 1st respondent. I had ordered that the money could not be released in favour of any party till the appeal was heard finally. This time, IFCI Ltd. along with Technology Development Board has moved the instant application. The application was contested by the opposite parties.

This issue had also went before the Hon'ble High Court, which passed the following order on 9.2.2009.

Since the applicant is one of the creditors of the judgment debtor and interest of the applicant is deeply involved in the properties of judgment debtor, which are sought to be attached for recovery of dues of the present decree holder, I consider the applicant is a necessary party and the application is allowed to that extent. However, as far as other relief is concerned, I consider that applicant can take steps before appropriate forum for attachment of the excess amount kept with the Indian Bank. The amount ordered to be kept with the Indian Bank shall be kept by the Indian Bank and shall not be disbursed by the Indian Bank without the express order of this Court or any other competent Court/Tribunal. The application is disposed of in above terms.

This Court is yet to hear the appeal on merits. I have already ordered that this issue will be decided at the time of disposal of the appeal finally. It is too early to speak my piece on this issue at this stage. All these questions involved have to be investigated and discussed down to the ground. This matter will be decided at the time of final disposal of the appeal. The Hon'ble High Court has already ordered that Indian Bank will not disburse the amount till the matter stood decided by the Tribunal. Indian Bank is, however, directed to keep the said money in an account getting maximum interest, which will also be taken into account. There are two more cases connected with the present one. All these cases involve question of limitation also. Delay in filing the appeals may be or may not be condoned depending on the facts of each case. Consequently, this case is ordered to come up along with connected cases on 12.8.2011. Arguments on all the issues as well as on the question of limitation will be heard on that date.