AI Structured Summary
Not yet generated for this judgment
Judgment
This is an Transfer Application under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 initiated by the applicant no.1 against the defendants/respondents no.1 and 2(a), 2(b) and 2(c) praying for issuance of Recovery Certificate to the tune of Rs.36,58,58,434.00 together with interest, cost and other usual reliefs.
The brief facts of the case as made out in the Transfer Application by the applicant bank is that the defendant no.1 is a Public Limited Company duly incorporated under the provisions of The Companies Act, 1956. The defendant no.1 was formerly known as Grapco Granites Limited. The defendants no. 3 to 7 holds pari pasu charge with the applicant in the immovable and movable properties of the defendant no.1.
The original defendant no.2, R. P. 3hunjhunwala died on 10.08.2001 leaving behind his widow, son and daughter being defendants no. 2(a), 2(b) and 2(c) respectively as legal heirs and representatives of the deceased defendant no.2, R. P. Jhunjhunwala.
At the request of the defendant no.1, the applicant from time to time sanctioned, granted and disbursed various loans in rupee and foreign currency as stated hereinafter to and in favour of the defendant no.1 for the purpose of setting up of manufacturing facilities at Balasore in Orissa, Bangalore in Karnataka and Alwar and Jaipur, both in the State of Rajasthan for the manufacture of granite tiles, granite slabs, granite monuments and for the manufacture of cutting blocks with diamond impregnated tools wherein the defendant no.2 had stood as guarantor.
Pursuant to and in terms of the Loan Agreement dated 16.05.1989 (hereinafter referred to as The First Loan Agreement), entered into between the defendant no.1 and the applicant in respect of the foreign currency loan of DM 1, 093, 023 equivalent to Rs.94.00 lakhs at the time of sanction (First Loan) and the securities created in respect thereof, the defendant no.1 availed of the first loan from the applicant in foreign current equivalent to DM 1, 093, 023. To avail the first loan, the defendant no.1 had executed loan agreement and Deed of Hypothecation on 16.05.1989 in favour of applicant. The defendant no.2 had executed a personal guarantee on 16.05.1989 in favour of the applicant to the First Loan availed by the defendant no.1.
In terms of the First Loan Agreement, the defendant no.1 was required to repay the principal amount of the First Loan and pay interest thereon in accordance with the repayment schedule contained in the First Loan Agreement. The defendant no.1 failed and neglected to make payment to the applicant of the installment of principal, interest and other charges.
Pursuant to and in terms of the Loan Agreement dated 29.07.1991 as amended by a note of amendment dated 10.03.1992 (hereinafter collectively referred to as the Second Loan Agreement), entered into between the defendant no.1 and the applicant in respect of the foreign current loan of DM 2,832,390 equivalent to Rs.297 lakhs at the time of sanction (hereinafter referred to as the Second Loan) and the securities created in respect of defendant no.1 availed of the Second Loan from the applicant. To avail the Second Loan, the defendant no.1 had executed the Loan Agreement and Deed of Hypothecation on 29.07.1991 in favour of the applicant. The defendant no.2 had executed a personal guarantee on 29.07.1991 in favour of the applicant.
In terms of the Second Loan Agreement, the defendant no.1 was required to repay the principal amount of the First Loan and pay interest thereon in accordance with the repayment schedule contained in the First Loan Agreement. The defendant no.1 failed and neglected to make payment to the applicant of the installment of principal, interest and other charges.
Pursuant to and in terms of the Loan Agreement dated 05.06.1992 (hereinafter referred to as the Third Loan Agreement), entered into between the defendant no.1 and the applicant in respect of the foreign currency loan of DM 1, 016, 690 and US $ 375,000, equivalent to Rs.265 lakhs at the time of sanction as reduced to DM 969, 419 and US $ 321,409.99 (hereinafter referred to the Third Loan) and the securities created in respect of defendant no.1 availed of the Third Loan from the applicant. To avail the Third Loan, the defendant no.1 had executed the Loan Agreement and Deed of Hypothecation on 05.06.1992 in favour of the applicant. The defendant no.2 had executed a personal guarantee on 05.06.1992 in favour of the applicant.
In terms of the Third Loan Agreement, the defendant no.1 was required to repay the principal amount of the Third Loan and pay interest thereon in accordance with the repayment schedule contained in the Third Loan Agreement. The defendant no.1 failed and neglected to make payment to the applicant of the installment of principal, interest and other charges.
Pursuant to the Loan Agreement dated 11.06.1992 under Project Finance Participation Scheme (hereinafter referred to as the Fourth Loan Agreement), entered into between the defendant no.1, the applicant and defendant no.3 in respect of the loan of Rs.450 lakhs where the applicant's share was Rs.225 lakhs (hereinafter referred to as the Fourth Loan) and the securities created in respect thereof, the applicant disbursed to the defendant no.1 from time to time, sum to the extent of Rs.220 lakhs out of share of the applicant in the Fourth Loan. The applicant had cancelled balance amount of Rs.5.00 lakhs on 06.03.1997 of which the defendants no.1 and 2 had due notice. To avail the Fourth Loan, the defendant no.1 had executed the Loan Agreement and Deed of Hypothecation on 11.06.1992 in favour of the applicant. The defendant no.2 had executed a personal guarantee on 11.06.1992 in favour of the applicant.
In terms of the Fourth Loan Agreement, the defendant no.1 was required to repay the principal amount of the Fourth Loan and pay interest thereon in accordance with the repayment schedule contained in the Fourth Loan Agreement. The defendant no.1 failed and neglected to make payment to the applicant of the installment of principal, interest and other charges.
Pursuant to the Loan Agreement dated 21.05.1992 (hereinafter referred to as the Fifth Loan Agreement), entered into between the defendant no.1, the applicant in respect of the loan of Rs.500 lakhs (hereinafter referred to as the Fifth Loan) and the securities created in respect thereof, the applicant disbursed to the defendant no.1 to the extent of Rs.500 lakhs from time to time. To avail the Fifth Loan, the defendant no.1 had executed the Loan Agreement and Deed of Hypothecation on 21.05.1993 in favour of the applicant. The defendant no.2 had executed a personal guarantee on 21.05.1993 in favour of the applicant.
In terms of the Fifth Loan Agreement, the defendant no.1 was required to repay the principal amount of the Fifth Loan and pay interest thereon in accordance with the repayment schedule contained in the Fifth Loan Agreement. The defendant no.1 failed and neglected to make payment to the applicant of the installment of principal, interest and other charges of the Fifth Loan.
Pursuant to the Loan Agreement dated 04.02.1994 under Project Finance Participation Scheme (hereinafter referred to as the Sixth Loan Agreement), entered into between the defendant no.1, the applicant and the defendant no.3 in respect of the loan of Rs. 1000 lakhs where share of the applicant was Rs.500 lakhs (hereinafter referred to as the Sixth Loan) and the securities created in respect thereof, the applicant disbursed to the defendant no.1 to the extent of Rs.500 lakhs out of applicant's share of the Sixth Loan from time to time. To avail the Sixth Loan, the defendant no.1 had executed the Loan Agreement and Deed of Hypothecation on 04.02.1994 in favour of the applicant. The defendant no.2 had executed a personal guarantee on 04.02.1994 in favour of the applicant.
In terms of the Sixth Loan Agreement, the defendant no.1 was required to repay the principal amount of the Sixth Loan and pay interest thereon in accordance with the repayment schedule contained in the Sixth Loan Agreement. The defendant failed and neglected to make payment to the applicant of the installment of principal, interest and other charges of the Sixth Loan.
Pursuant to the Loan Agreement dated 05.09.1994 (hereinafter referred to as the Seventh Loan Agreement), entered into between the defendant no.1, the applicant in respect of the loan of Rs.500 lakhs (hereinafter referred to as the Seventh Loan) and the securities created in respect thereof, the applicant disbursed to the defendant no.1 to the extent of Rs.500 lakhs from time to time. To avail the Seventh Loan, the defendant no.1 had executed the Loan Agreement, Deed of Hypothecation and D. P. Note for Rs.500 lakhs on 05.09.1994 in favour of the applicant. The defendant no.2 had executed a personal guarantee on 05.09.1994 in favour of the applicant.
In terms of the Seventh Loan Agreement, the defendant no.1 was required to repay the principal amount of the Seventh Loan and pay interest thereon in accordance with the repayment schedule contained in the Seventh Loan Agreement. The defendant no.1 failed and neglected to make payment to the applicant of the installments of principal, interest and other charges of the Seventh Loan to the applicant.
Pursuant to the Loan Agreement dated 03.08.1994 (hereinafter referred to as the Eight Loan Agreement), entered into between the defendant no.1 and the applicant in respect of the loan of Rs.180 lakhs (hereinafter referred to as the Eighth Loan) and the securities created in respect thereof, the applicant disbursed to the defendant no.1 to the extent of Rs.180 lakhs from time to time. To avail the Eighth Loan, the defendant no.1 had executed the Loan Agreement and Deed of Hypothecation on 03.08.1994 in favour of the applicant. The defendant no.2 had executed a personal guarantee on 03.08.1994 in favour of the applicant.
In terms of the Eighth Loan Agreement, the defendant no.1 was required to repay the principal amount of the Eight Loan and pay interest thereon in accordance with the repayment schedule contained in the Eighth Loan Agreement. The defendant no.1 failed and neglected to make payment to the applicant of the installments of principal, interest and other charges of the Eighth Loan to the applicant.
By a letter dated 18.03.1998, the applicant had agreed to revise the repayment schedules of the above loans on certain terms and conditions, which the defendant had failed to adhere to. The defendant no.2 had also agreed and undertook that in the event of default on the part of the defendant no,' in making payment in discharge of any such obligations the defendant no.2 would make payment to the applicant. To secure the above loan amount, the defendant no.1 through its authorized Director had created equitable mortgage of its property in favour of the applicant by depositing the original title deed with the applicant.
Further, by virtue of Deed of Confirmation dated 20.04.2005 executed by ICICI Bank Ltd., the original applicant, the present applicant has been assigned all the right, title, claims and benefits to the original applicant relating to the Agreement, documents and Deeds in connection with instant proceeding and as such entitled to substitute the original applicant in the present proceeding as to have the benefit of decree/certificate to be passed herein in the facts of the case.
After availing the loan, the defendant no.1 had utilized the said loan amount in its business and operated the loan accounts at the initial stage but subsequently the defendants had failed to operate the said loan accounts in terms of the agreement between the parties as a result of which the loan accounts became irregular. A sum of Rs.36,58,58,434.00 is due against the defendants which the defendants had not paid despite repeated demands and request. Finding no other way to recover the dues of the applicant, the applicant had filed this Transfer Application for the recovery of the aforesaid amount and for the issuance of Recovery Certificate against the defendants no.1 and 2.
Notices were issued to the defendants to show cause as to why the relief prayed for by the applicant bank be not granted. After issuance of the notice, the defendants no.1 and 2 had neither appeared nor had filed their show cause reply. The remaining defendants had appeared through their respective Counsels.
I have perused the relevant documents/materials available on the record.
The defendants no.1 and 2 had not contested the case of the applicant bank. Thus, the point for determination in this case is (i) Whether the claim of the applicant is within time? (ii) Whether the defendants had utilized the loan facilities granted by the bank ? (iii) Whether the defendants are liable to the amount due to the applicant or not?
Pursuant to order dated 15'h May, 1997 Joint Receivers were appointed by this Tribunal with the direction to make inventory of the assets of the defendant No.1 of the company situated at Bangalore, Jaipur, Alwar and Balasore. The two Joint Receivers, namely, Shri Biswapati Das, Advocate and Shri Raghunath Das, Advocate had visited the sites on 12.06.1997, 23.06.1997 and 27.06.1997 and submitted report on 30.06.1997. The Joint Receivers took possession of the assets of the company located at its factory premises mentioned herein above and posted Security Guards, recorded in a minutes of meeting dated 24.07.2002 at IDBI Premises.
The Joint Receivers submitted that since this Tribunal has appointed them to act as a custodian legis, this Tribunal has the jurisdiction to discharge from acting as Joint Receivers from the instant proceedings.
Further on 16.08.2019, the Joint Receivers had submitted a report in terms of Order dated 05.07.2019 wherein it has been submitted that by an order dated 05.07.2019, Joint Receivers are directed to file the report.
That by an order dated 15.05.1997 whereby the Joint Receivers were appointed with direction to make inventory of the assets of the company situated at different places of India and the Joint Receivers carried out the same and submitted the report since 1997 to 2019 (At least 20 times).
The sale proceeds realized from the securities of the company from a sum of Rs.7.30 crores only. By an order of the Tribunal, the Joint Receivers were directed to make the payments to the Secured Creditors, namely, I.C.I.C.I. and I.D.B.I. Bank and the Joint Receivers carried out the order. The total payments made to the secured creditors are amount to Rs.4.60 crores only. It is recorded in the order dated 17.03.2004, 18.03.2004 and 14.01.2004. Apart from that, the Joint Receivers have paid the fees of valuer, Advertising Agencies, Security Agencies and Tour Expenses to the following places Balasore, Bangalore, Rajasthan and to Alwar (For movable assets). Total expenditure amount was Rs.16.00 lakhs. It is also recorded in the order dated 14.01.2004.
After disbursement of sale proceeds along with expenditure the balance amount is lying with Joint Receivers for a sum of Rs.2.55 crores. By an order dated 17.05.2004 of the D.R.T., the Joint Receivers were directed to deposit the balance amount of Rs.2.55 crores with State Bank of India. And subsequently on the prayer of the applicant bank, i.e. I.D.B.I. Bank, the D.R.T. was pleased to direct the State Bank of India to transfer the said fixed deposit to I.D.B.I. Bank at Gariahat Branch.
By an order dated 25.01.2005, the Joint Receivers were again directed to sale the immovable properties (Lease hold land) of the Company was situated at Alwar. Accordingly, the Joint Receivers took proper steps for sale of the immovable properties. The D.R.T. was pleased to direct the Joint Receivers to spend the expenses towards the sale of the immovable properties from the balance sale proceeds. Hence, the Joint Receivers paid the fees of the valuers, Advertisement cost, security agency and tour expenses amounting to Rs.8.78 lakhs.
The immovable properties of the company situated at Alwar was sold for a sum of Rs.1,57,20,000.00 and the same amount was deposited with the Assistant Registrar, D.R.T.-1, Kokata as per order dated 05.12.2007, 07.12.2007 and 15.01.2008 given by the D.R.T. and same is lying with the Assistant Registrar, D.R.T.-I as on date. At present fund position for a sum of Rs.6,38,37,129.00 lying with I.D.B.I., Gariahat Branch, Kolkata. By an Order dated 02.12.2014, the Joint Receivers filed an application for Discharge which is still pending for disposal.
During the pendency of the matter, the defendant no.3, i.e. I.D.B.I. Bank Ltd. has filed a Supplementary Affidavit on 28.09.2019 submitting that the applicant bank filed the instant application under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 praying for certificate and other relieves as stated in the said Section 19 application.
That during course of hearing of the instant matter before the D.R.T.-1, the mortgaged properties were put on sale and the joint Receivers appointed by the Tribunal have sold the entire property on 07.08.2003. It would appear from the records of the Tribunal that on 07.08.2003 sale of Balasore unit was confirmed at Rs.10.00 lakhs, on 03.03.2004 sale of Bangalore unit was confirmed at Rs.3.30 crores and on 10.03.2004 sale of Jaipur Unit was confirmed at Rs.1.65 crores and again on 10.03.2004, sale of movable properties at Alwar was confirmed at Rs.26.00 lakhs. The successful bidders in respect of those properties had deposited the entire sale price and thus by 25.03.2004 an amount of Rs.7,31,00,000.00 was deposited with the Joint Receivers as sale proceeds.
Further, the Joint Receiver has filed his report pursuant to direction dated 05.07.2019. From para no.4 of the said report, it is transpired that the said joint receiver pursuant to the order of Presiding Officer dated 17.03.2004 has disbursed a sum of Rs.225 lakhs to I.D.B.I., Rs.225 lakhs to ICICI and Rs.30 lakhs to Canara Bank out of total sale consideration of Rs.731 lakhs. That in paragraph no.4 in the second part, the Receiver has stated that a sum of Rs.16.00 lakhs has been disbursed towards expenditure of advertisement of sale for two times for Rs.10.00 lakhs and Rs.4.00 lakhs respectively and Rs.2.00 lakhs expenditure has been made for valuation fees and tour purpose and thereby Rs.16.00 lakhs expenditure has been made out of sale proceeds. The same has been recorded in order dated 14.01.2004.
That it is submitted in the report that after excluding the total expenses of Rs.4.76 crores, the bifurcation of which is mentioned herein above made by the receiver from the sale proceeds, i.e. of Rs.7.31 crores, the remaining sum of Rs.2.55 crores has been kept in FD account by the Receiver vide order of the Tribunal dated 17.05.2004. Initially the said FD has been made to State Bank of India, thereafter the same has been transferred to IDBI, Gariahat Branch, Kolkata. The said FDR stands in the name of joint Receiver.
Lastly the I.D.B.I. has submitted that the said joint receivers have also opened a savings bank account with the Garihat Branch of the I.D.B.I. Bank. As on date a balance sum of Rs.6,38,37,129.00 is lying in the said account. The entries of the said account shall be found from the Statement of Account enclosed by the bank in the present petition.
The joint Receiver has also filed and petition/report on 16.08.2019 before this Tribunal in pursuant to the direction dated 05.07.2019. By an order dated 15.05.1997 whereby the joint Receivers were appointed with direction to make inventory of the assets of the company situated at different places of India and the joint Receivers carried out and submitted the report since 1997 to 2019. The sale proceeds realized from the securities of the company from a sum of Rs.7.31 crores.
By an order of the Tribunal, the joint Receivers were directed to make the payments to the Secured Creditors, namely, I.C.I.C.I. and I.D.B.I. Bank and the Joint Receivers carried out the order. The total payments made to the secured creditors are amounted to Rs.4.60 crores. It is recorded in the order dated 17.03.2004, 18.03.2004 and 14.01.2004. Apart from that, the joint Receivers have paid the fees of valuers, advertising agencies, Security Agencies and Tour Expenses. Total expenditure amount was Rs.16.00 lakhs. After disbursement of sale proceeds along with expenditure the balance amount is lying with joint Receiver for a sum of Rs.2.55 crores. By an order dated 17.05.2004 of the D.R.T., the joint Receivers were directed to deposit the balance amount of Rs.2.55 crores with State Bank of India and subsequently on the prayer of the applicant bank, i.e. I.D.B.I. Bank, the D.R.T. was directed the State Bank of India to transfer the said fixed deposit to I.D.B.I. Bank at Gariahat Branch.
The immovable properties of the company situated at Alwar was sold for a sum of Rs.1,57,20,000.00 and the same amount was deposited with the Assistant Registrar, D.R.T.-1, Kolkata as per order dated 05.12.2007, 07.12.2007 and 15.01.2008 given by D.R.T. and same is lying with the Assistant Registrar, DRT-1 as on date. At present fund position for a sum of Rs.6,38,37,129.00 lying with IDBI, Gariahat.
The 75 workers of Bangalore Unit of Grapco Industries Ltd. (In Liquidation) has filed their written submission on 17th December, 2019 before this Tribunal and prayed this Tribunal to implead them as parties to the instant proceedings and submit their adjudicated claim for Rs.16,99,398.00 and Rs.42,72,855.00 respectively.
The said workers submitted that in continuation to the orders passed by this Tribunal, the Bangalore Unit of the Grapco Industries was auctioned pursuant to the orders of this Tribunal for a sum of Rs.5.30 crores and the monies were deposited with the Joint Receivers as recorded in the order dated 3rd March, 2004. In view of the closure of the factory unit at Bangalore in the month of March, 2002 and the fact the since December 2001 till March 2002, the earned wages of the workers were not paid, the workers approached the Deputy Labour Commissioner and Assistant Labour Commissioner seeking earned salary, closure compensation, gratuity and other statutory entitlements for the services renders to the Grapco Industries Ltd.
The concerned authorities thereafter adjudicated the claims of the workers. First, a sum of Rs.42,72,855.00 was adjudicated by an order being U.KA.AA.BAN(2)IAA: APRIL-02-02-03 dated 18th April, 2002 passed by the Deputy Labour Commissioner under Section 33(C)1 of the Industrial Disputes, 1947. Following by adjudication for Rs.16,99,398.00 under order dated 29.06.2002 passed by the Assistant Labour Commissioner and the payment of Graturity Authority, Division-4 Bangalore..
Initially the workers had approached the Hon'ble High Court at Karnataka in W.P. No.46216-46217 of 2002 dated 28.07.2003 filed by the Workers where permission was given to approach this Tribunal Accordingly, the application was filed.
Lastly the workers prayed this Tribunal for directions for disbursement of the outstanding dues as adjudicated above for a sum of Rs.42,72,855.00 wad adjudicated by an order dated 18.04.2002 passed by the Deputy Labour Commissioner under Section 33(C)1 of the Industrial Disputes, 1947. Followed by adjudication for Rs.16,99,398.00 under order dated 29.06.2002 passed by Assistant Labour Commissioner and the Payment of Gratuity Authority, Division-4 Bangalore out of the sale proceeds, i.e. Rs.5.30 crores of the Bangalore Property. Further, submitted that this tribunal to direct disbursement of the adjudicated sum to the 75 workers above exercising its powers envisaged under Section 19(19) of the Act, 1993, where the rights of the workers are protected before this Tribunal in the interest of justice.
This Tribunal has passed the Order on 22nd February, 2020 in TA No. 04 of 2012 directing the official liquidator attached with the High Court of Orissa, Cuttack of this Company in liquidation which is defendant No. 1 to file a report along with adjudicated claim of the workers, if so invited along with their list and amount.
The official liquidator has filed his report dated 9th March, 2020. As per the report the claim of workers are yet to be invited. The official liquidator further claims that he has no funds of the Company i.e. defendant no. 1, which is in liquidation, in his hand to invite claims. The official liquidator has prayed for deposit of a sum of Rs.3,00,000/- with his office for publication of notices in newspapers in accordance with Companies (Court) Rules, 1959. In view of this the official liquidator's report is taken on record.
The provisions of Section 19, Sub-Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 provides as below :
"[(19) Where a certificate of recovery is issued against a company as defined under the Companies Act, 2013 and such company is under liquidation, the Tribunal may by an order direct that the sale proceeds of secured assets of such company be distributed in the same manner as provided in section 326 of the Companies Act, 2013 or under any other law for the time being in force.]"
The applicant by oral and documentary evidence has established its case. The documentary evidence comprises from Annexure/Exhibit-A to Annexure/Exhibit-N, which are available in paper book filed by the applicant bank.
From the perusal of the documents referred above and the certified copy of the statement of account, which is filed as Annexure/Exhibit-A to N, it is established that the defendants had availed the financial facilities from the applicant bank and had withdrawn the amount through the account.
The Applicant has not cl&med any relief against the defendants no.3 to 81 and impleaded them as proforma defendants. Hence, the no relief is granted against the defendants no.3 to 81.
From the perusal of the Statement of Account which is Annexure/Exhibit-M, the total outstanding comes to Rs.36,58,58,434.00 which the applicant is entitled to recover from the defendants no.1 and 2.
Since the defendant no.2 had expired and the defendants no.2 (a), 2 (b) and 2(C) had stepped into the shoes of the deceased defendant no.2 who had inherited the estate of the deceased defendant no.2, hence the said defendants no.2 (a), 2 (b) and 2 (C) are also liable to the dues of the bank amounting to Rs.36,58,58,434.00 besides interest accrued to it till the date of realization. However, the liability of the defendants no.2 (a), 2 (b) and 2 (C) shall be limited to the extent they had inherited the estate of Late R. P. Jhunjhunwala and there shall be no personal liability of the defendants no.2 (a), 2 (b) and 2 (C).
In view of the above discussion and after considering the entire case records and the documents filed by the applicant, I have no hesitation to hold that the applicant is entitled to recover a sum of Rs.36,58,58,434.00 from the defendants no.1 and 2 who are liable for the same. The applicant bank shall also be entitled to pendentelite and future interest on the said amount @ 12% per annum with simple from the date of filing of the Original Application till the date of realization.
ORDER
(1) T.A. No.01 of 2012 filed by the Applicant Bank is allowed and debt is determined with cost against the defendants no.1 and 2. It is hereby ordered that applicant bank is entitled to recover from the defendants the total amount to the tune of Rs.36,58,58,434.00 (Rupees Thirty Six Crores Fifty Eight Lakhs Fifty Eight Thousand Four Hundred Thirty Four only) with pendentelite and future interest @ 12% per annum with simple on the amount due from the date of filing of the Transfer Application, i.e. 07.05.1997 till full and final realization of the claim amount. The liability of the defendants no.2 (a), 2 (b) and 2 (C) to pay the aforesaid amount shall be limited to the extent they had inherited the estate of Late R. P. Jhunjhunwala and there shall be no personal liability of the defendant no.2 (a), 2 (b) and 2 (C) to pay the said amount.
(2) Amount, if any, paid by the defendants in the loan account or amount, if any, recovered by the Applicant Bank after filing of the T.A. the same be taken into account while arriving at the exact amount of dues/debt payable by the defendants. Accordingly, pendentelite and future interest shall be calculated on the reduced amount.
(3) The official liquidator is entitled to receive Rs.3 lakhs out of the amount lying with the Joint Receiver/Registrar of this Tribunal, who is directed to release Rs. 3 lakhs in favour of the official liquidator attached with the High Court of Orissa at Cuttack for inviting the claims of the workers.
(4) The petition of the 75 workers of Bangalore Unit of Grapco Industries Limited is disposed of with the direction to approach the official liquidator attached with the High Court of Orissa at Cuttack of the Companies (in liquidation) as and when he will invite the claims of the workers. The official liquidator after adjudication of claims is entitled to receive the amount. Accordingly, the Charge Holder Bank is directed to keep some amount out of the sale proceeds lying with the Joint Receiver/Registrar of this Tribunal, so that as and when official liquidator adjudicates the claims of the workers, this is distributed in the same manner as provided in Section 326 of the Companies Act, 2013 (18 of 2013) or under any other law for the time being in force.
(5) Defendants are debarred from disposing, alienating or dealing with any of the properties belonging to them till the aforesaid decretal debt is recovered from the defendants.
(6) Defendants are given a time of thirty days from the date of the Judgement/Final Order for repaying of the above mentioned dues, so intimated to them. In case the defendants fail to pay the dues within the above mentioned time, the applicant bank is entitled to recover its dues by sale of secured assets, if any. Applicant bank is also entitled to proceed against personal properties of the defendants (Both movable and immovable) and also proceed against the defendants personally to recover the dues in accordance with law.
(7) Let the Certificate of Recovery be drawn up by Ld. Registrar forth within terms of Judgement for issuance of the same against defendantsin favour of the applicant bank under Section 19(22) of the Recovery of Debts and Bankruptcy Act, 1993 and put up the same for issuance of the Certificate.
(8) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from the defendants in accordance with law.
(9) Ld. Registrar of this Tribunal is directed to deliver recovery certificate in term of the final order/judgement for recovery of the sum against the defendants in favour of the Applicant Bank under Section 19(22) of the Recovery of Debts due to the Bank and Financial Institutions Act, 1993 now known as Recovery of Debts and Bankruptcy Act, 1993.
Accordingly, the Original Application being T.A. No.01 of 2012 is allowed and stands disposed of.
Copy of the Judgement/Final Order be upload in the Tribunal's website.
File is consigned to the Record Room.
(Dictated to Steno, transcribed by him, corrected, signed and pronounced by me in the Virtual Court on this the 28th day of September 2020