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IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Kalyan Jyoti Sengupta, Sanjay Kumar, JJ.
Indian Bank - Appellant
Vs.
The Sub Registrar - Respondent
Writ Appeal Nos. 1420 and 1424 of 2013 and O.S.A Nos. 34 and 35 of 2013
Decided On: 11.11.2014
Companies Act - Sections 531, 531A and 537 - Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Debts Recovery - Recovery of Debts Due to Banks and Financial Institutions Act – Bank - Mortgaged and hypothecated properties - Appeals are taken up for hearing analogously for sake of convenience as they owe origin to common judgment and order - All these appeals are preferred by Indian Bank a secured creditor of a company - Minerals Private Limited now in liquidation said company availed itself of various credit facilities from appellant Bank and in consideration thereof it hypothecated its plant and machinery and other movables as securities therefore - Apart from above securities one and one who are Directors of said company stood guarantors for repayment of dues of appellant - They mortgaged their immovable properties large plot non-agricultural land situated in State of Karnataka and two flats in Hyderabad - As there has been default in repayment of loan amount by said company to appellant loan accounts were classified as Non Performing Asset - Held, Trial Judge by necessary implication proceeded assuming that loan transaction between appellant and auction purchaser are having correlation with completion of sale namely handing over possession of property and payment of balance sale consideration money - Think that this approach in exercise of writ jurisdiction is absolutely unwarranted and writ petitions should not have been entertained at all - It is not a pure question of law on admitted fact - All questions and controversy are disputed questions of fact and law and could not be decided in writ jurisdiction - Hence hold that granting relief to auction purchaser as prayed for in writ petition is not sustainable law - Therefore set aside same and dismiss writ petitions leaving all questions open - It would be open for auction purchaser to approach Debts Recovery Tribunal so also Official Liquidator or any other claimant - Appeal allowed (Para 42)
IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Kalyan Jyoti Sengupta, Sanjay Kumar, JJ.
Indian Bank - Appellant
Vs.
The Sub Registrar - Respondent
Writ Appeal Nos. 1420 and 1424 of 2013 and O.S.A Nos. 34 and 35 of 2013
Decided On: 11.11.2014
Cases referred:
Haryana State Industrial and Infrastructure Development Company v. Haryana Concast Limited & another, (2010) 158 Company Cases 168
Kotak Mahindra Bank Limited v. Megnostar Telecommunications Private Limited, (2013) 176 Company Cases 246 (Delhi)
The Akola Oil Industries (under liquidation) through Official Liquidator v. State Bank of India, 2006 (1) Bom. CR. 362
Jagdish Singh v. Heeralal, (2014) 1 SCC 479
Rajasthan State Financial Corporation and another v. Official Liquidator, (2005) 8 SCC 190
Sri Siddeswara Cooperative Bank Ltd. v. Ikbal, (2013) 10 SCC 83
Advocate Appeared:
For Appellant/Petitioner/Plaintiff: S. Ravi, Senior Counsel, for Ambadipudi Satyanarayana
For Respondents/Defendant: Government Pleader for Revenue and M. Anil Kumar
Acts/Rules/Orders:
Banking Regulation Act, 1949 - Section 9; Code of Civil Procedure, 1908 (CPC) - Section 9; Companies Act, 1956 - Section 441, Companies Act, 1956 - Section 442, Companies Act, 1956 - Section 446, Companies Act, 1956 - Section 446(d), Companies Act, 1956 - Section 529, Companies Act, 1956 - Section 529A, Companies Act, 1956 - Section 531, Companies Act, 1956 - Section 531(a), Companies Act, 1956 - Section 531A,Companies Act, 1956 - Section 537; Constitution Of India - Article 226, Constitution Of India - Article 227; Indian Evidence Act, 1872 - Section 102, Indian Evidence Act, 1872 - Section 92; Recovery Of Debts Due To Banks And Financial Institutions Act, 1993 - Section 30, Recovery Of Debts Due To Banks And Financial Institutions Act, 1993 - Section 34; Registration Act, 1908 - Section 17, Registration Act, 1908 - Section 49;Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 13, Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 13(1), Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 13(4), Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 13(9), Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 17, Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 17A, Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 34, Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 35, Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 37, Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Section 9; Transfer Of Property Act, 1882 - Section 69, Transfer Of Property Act, 1882 - Section 69A
Judgment
Kalyan Jyoti Sengupta, J.
1. All the four appeals are taken up for hearing analogously for the sake of convenience as they owe origin to common judgment and order passed by the Hon'ble trial Judge, dated 29.4.2013, in Writ Petition Nos. 19297 of 2012 & 33655 of 2011, and Company Application Nos. 1972 of 2011 & 421 of 2013 in Company Petition No. 215 of 2010.
2. All these appeals are preferred by the Indian Bank, a secured creditor of a company - M/s. Laran Sponge & Minerals Private Limited now in liquidation (hereinafter referred to as the said Company). The facts leading to preferring the appeals are shortly put hereunde
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