AI Structured Summary
Not yet generated for this judgment
Judgment
The Court : In this application the petitioner prays for leave to serve a copy of this application on the two debtors of the respondent no.1 company,
namely, ISC Project Limited and NTPC Railway Projects, Gaddarwara, Madhya Pradesh. The address of the said two debtors of the respondent no.1
company has been mentioned in the supplementary affidavit filed by the petitioner, a copy whereof was also served upon the respondent no.1.
The petitioner filed an application, AP No.312 of 2018 under Section 9 of the Arbitration & Conciliation Act, 1996 (in short, ""the Act of 1996"") against
the respondents praying for, inter alia, various reliefs including an order for appointment of Receiver to take possession of the 31 assets which
remained hypothecated by the respondent no.1 in favour of the petitioner.
It is the case of the petitioner in the said application, AP No.312 of 2018 is that in terms of an agreement dated April 1, 2016 between the parties, the
respondent no.1 obtained financial assistance of Rs.9,74,000/- from the petitioner for acquiring the said 31 assets which remained hypothecated in
favour of the petitioner. The respondent no.1, however, committed default in making payment of its dues to the petitioner under the said agreement
dated April 1, 2016. Thus, the petitioner has terminated the said agreement and prayed for appointment of Receiver to take possession of the said
assets of the petitioner. The said application was moved upon notice to the respondents.
On June 15, 2018 when the said application was taken up for hearing by this Court, learned advocate appearing for the respondents prayed for
adjournment of hearing of this application in order to enable him to take instruction in the matter. The learned advocate appearing for the respondent
also submitted that before the next date of hearing a statement of accounts with regard to payments made by the respondent no.1 to the petitioner
shall be made over to the petitioner. Such prayer of the learned advocate for the respondent were allowed. Accordingly, hearing of the said application
was adjourned till July 25, 2018. However, on July 25, 2018 when the application was taken up for hearing, it transpired that the respondents had not
made over any statement of accounts. On July 25, 2018 this Court appointed a Receiver to take actual physical possession of the said 31 hypothecated
assets mentioned in Annexure-‘A’ to the application. The Receiver has, however, filed a report stating that out of the 31 hypothecated assets
the respondent no.1 had made over possession of only part of two hypothecated assets to him. The respondents have not filed any exception to the
said report of the Receiver.
In view of the above facts, the petitioner has filed the present application seeking for leave to serve a copy of this application on the aforementioned
two debtors of the company. The petitioner has also prayed for an order restraining the said two debtors of the respondent no.1 company from
disbursing any amount to the respondents without keeping the outstanding dues payable by it to the petitioner.
A copy of the application has been duly served upon Mr. Debraj De, learned advocate representing the respondents. The learned advocate for the
respondents could not dispute the fact that out of the 31 hypothecated assets, the respondents have made over possession of part of two assets only.
He, however, sought to argue that the present outstanding dues of the respondents to the petitioner are not for Rs.7,82,68,860/- as claimed by the
petitioner in this application much less than that amount. The respondents do not dispute that substantial amount of money is receivable by the
respondents from the said two debtors of the respondents mentioned in this application.
In its affidavit in opposition filed in A.P. No. 312 of 2018, the respondent has admitted that as on the date of affirmation of the said affidavit i.e. on
August 17, 2018, Rs.97,19,619/- remains due. After the month of August, 2018, the monthly instalment for the month of September for Rs.39,51,000/-
has further become due by the respondent no.1 to the petitioner and admittedly the respondent no.1 has not paid the said sum. Accordingly, as on
today Rs.1,77,21,619/- remains due and owing by the respondent no.1 to the petitioner. Such amount is also admitted by the learned Advocate
appearing for the respondent.
Considering the above facts of the case, I find that the petitioner has mad out a prima facie case and the balance of convenience also lies in favour of
an ad-interim order being passed as prayed for. Accordingly, leave is granted to the petitioner to serve copies of this application on the ISC Project
Limited and NTPC Railway Projects. There shall also be an interim order directing the said ISC Project Limited and NTPC Railway Projects, having
their respective offices at Gaddarwara, Madhya Pradesh, not to make payment of any dues of the respondent no.1 until further order of this Court.
The respondent no.1, who is represented by Mr. Debraj De, learned Advocate as well as the petitioner are directed to forthwith communicate this
order to the ISC Project Limited and NTPC Railway Projects. Let this application appear, under the same heading, on November 13, 2018 when the
said debtors of the respondent no.1 company namely, ISC Project Limited and NTPC Railway Projects are directed to file their affidavits before this
Court disclosing the amount of money lying with each of them on account of the petitioner. Urgent certified website copies of this order, if applied for,
be supplied to the parties upon compliance with all requisite formalities.