High CourtsSingle Bench(2014) 09 P&H CK 0128

Ispat Structural (P) Ltd. vs Punjab State Power Corp. Ltd.

Punjab And Haryana At Chandigarh · Decided on 9 September 2014 · Citation: (2015) 177 PLR 278

HON’BLE JUDGES
Ritu Bahri, J
CASE NUMBER
Civil Writ Petition No. 14653 of 2011

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Judgment

10 paragraphs · 1,007 words

Ritu Bahri, J.—The petitioner is seeking direction to settle the dispute by One Time Settlement Policy dated 21.1.2011 (Annexure P-3). The facts in brief are that the Punjab State Electricity Board filed a suit for recovery of the dues along with interest before the Court of Civil Judge (Senior Division) Khanna. The Civil suit was decreed ex parte on 10.12.2002 for a sum of Rs. 3,26,927/- along with the simple interest @ 12% per annum (Annexure P-1). Thereafter the petitioner made an application under Order 9 Rule 13 CPC for setting aside the ex parte decree dated 10.12.2002. This application was dismissed vide order 7.12.2009 (Annexure P-2). As of date, the civil decree has attained finality. During this period, the petitioner-Company became a sick industrial company in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and had approached the Board for Industrial and Financial Reconstruction at New Delhi (BIFR) and filed Reference being Case No. 87 of 2006 for Rehabilitation of the Sick Industrial Company. The Reference was registered by the BIFR on 11.10.2006. The company could not be rehabilitated and the reference was dismissed on 25.1.2007. Thereafter an appeal was preferred by the Petitioner-Company before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) under Section 25 of the Sick Industrial Companies (Special Provisions) Act, 1985, but the same was also dismissed. Subsequently, one M/s. Keshav Multi Metal Pvt. Ltd. purchased the assets of the Company and the loan of the petitioner-Company with Punjab and Sind Bank was settled to the tune of Rs. 6,34,00,000/-. The machinery of the Company was auctioned by the Bank for a sum of Rs. 1,29,50,000/-. Since then the petitioner-Company is lying closed and has no assets nor any business. The Punjab State Electricity Board filed an execution petition for recovery of Rs. 3,26,927/- with interest as per the decree of the Civil Court dated 10.12.2002 (Annexure P-1) before the Court of the learned Additional Civil Judge (Senior Division) Khanna. During the pendency of recovery proceedings in the Execution Petition, the Department came up with the One Time Settlement Package of all categories of defaulter consumers dated 21.1.2011 (Annexure P-3). The petitioner made an application under the Scheme (Annexure P-4) and a subsequent representation dated 3.3.2011 (Annexure P-5). The Superintending Engineer vide letter dated 30.3.2011 (Annexure P-6) recommended the case of the petitioner for one time settlement to Chief Engineer (Commercial), Powercom, Patiala, for proper directions. The Chief Engineer vide letter dated 16.6.2011 (Annexure P-7) informed that Rs. 7,41,252/- were outstanding pursuant to the Court decree and the case does not fall under the OTS Scheme.

2.

In view of the above facts, reference, at this stage can be made to Clause 7 of the One Time Settlement Policy (Annexure P-3) which reads as under:

"7. (a) Facility of one time settlement to consumers whose cases are pending before various Forums/courts is offered after the withdrawal of such cases by them from the Forums/Courts.

(b) Once a relief under this package is availed, no further review/relief shall be admissible and the case finalized under the package shall not be referable to any DSC/Forum for Redressal of grievances of consumer/Ombudsman/Judicial Courts etc.

(c) This package shall also be available to those consumers who are not to get reconnection but want to clear the outstanding amount to get No Due Certificate from PSPCL."

3.

The petitioner is seeking reference of this case under the settlement of Clause 7(c) of One Time Settlement Policy in which those consumers who are not to get re-connection can be referred for a one time settlement for clearing outstanding amount in order to get No Dues Certificate from Punjab State Power Corporation Limited (hereinafter referred to as the PSPCL'').

4.

As per the arguments of the learned senior counsel, Mr. Anand Chhibbar, even though the civil Court decree has attained finality at the time of execution proceedings in this Court, the facility of one time settlement can be availed by the petitioner as the factory is lying closed and he is not to get any reconnection. At this stage, the argument for counsel for the respondent is that the petitioner did not even chose to appear before the trial Court and that he cannot take the benefits of one time settlement scheme under Clause 7 to reduce the amount to be recovered i.e. Rs. 7,41,252/- which has attained finality.

5.

As per One Time Settlement Policy dated 21.1.2011 (Annexure P-3) under Clause 7(a), facility can be availed by consumers whose cases are pending before various Forums and Courts after withdrawal of such cases by them from those Forums/Courts.

6.

In the present case, Punjab State Electricity Board has filed an execution petition for recovery of Rs. 3,26,927/- as per the civil Court decree dated 10.12.2002 (Annexure P-1). During the pendency of the execution proceedings, the Department had come up with the One Time Settlement package on 21.1.2011 (Annexure P-3). At that stage, the parties could not withdraw their case. However, as per Clause 7(c), the package is also to be made available to those consumers who are not to get reconnection but want to clear the outstanding amount to get the No Dues Certificate. This condition seems to be fulfilled as the unit of the petitioner has since closed down. The petitioner has no funds to clear the dues. Hence as per clause 7 Sub-clause (a) and (c), the case of the petitioner for consideration under the One Time Settlement Scheme cannot be rejected on the ground that the Civil Court decree against him has attained finality. The petitioner is covered under Clause 7(a) and (c) of the policy. In view of the discussion above, the petitioner''s case is covered under Clause 7(a)(c) of the One Time Settlement Policy (Annexure P-3). Order dated 16.6.2011 (Annexure P-7) is set aside and the respondents are directed to reconsider the case of the petitioner under the One Time Settlement Policy (Annexure P-3) in accordance with law and pass a speaking order in this regard.

Disposed of.