The petitioner, as a secured creditor, can raise the claim for a share in the interest amount before the respondent No.1 as directed in the previous judgment.

JUDGMENT :

1. Heard learned advocate Mr. J.B. Dastoor for the petitioner, learned advocate Mr. R.D. Dave for respondent No.2, learned advocate Mr. Pravin Panchal for respondent No.5 and learned Senior Advocate Mr. Navin Pahwa for learned advocate Ms. Sangita Pahwa for the applicant of the Civil Application through video conference.

2. By this petition under Article 226 of the constitution of India, the petitioner has prayed for the following reliefs :

“A. Your Lordships be pleased to allow this petition;

B. Your Lordships be pleased to issue a writ of mandamus or certiorari or any other writ direction or order in the nature of mandamus or certiorari directing the respondents to release the share of interest amount of petitioner of Rs. 185.87 Lakh along with accrued interest within stipulated time period.

C. Your Lordship be pleased to grant any other further relief Your Lordship deems fit, just and proper in the interest of justice.”

3. The brief facts of the case are that the petitioner provided financial assistance to respondent No.4-M/s. Jayswal Pharma Chem Limited.

3.1 The respondent No.1 to 3 being Gujarat Industrial Investment Corporation Limited [GIIC], Gujarat State Financial Corporation [GSFC] and Stressed Assets Stabilization Fund [SASF] respectively also advanced financial assistance to respondent No.4-Jaiswal Pharma Chem Limited.

3.2 Respondent Nos.1 and 2 are the Financial Corporations under the provisions of section 2(b) of the State Financial Corporation Act, 1951 [for short ‘the SFC Act, 1951’] and are established under section 3 of the SFC Act,1951 as the State Government by notification in Official Gazette has established Financial Corporations for the State.

3.3 The respondent No.4-M/s. Jaiswal Pharma Chem Ltd had mortgaged land and building and the plant and machinery was also hypothicated with respondent No.1 and 2.

3.4 Respondent No.4-M/s. Jaiswal Pharma Chem Ltd. failed to re-pay the outstanding dues of the petitioner as well as respondent Nos. 1 to 3. Respondent Nos. 1 and 2 therefore agreed that loan amount would be recovered from the sale of the land, building plant and machinery of respondent No.4-company in exercise of powers conferred under section 29 of the SFC Act, 1951.

3.5 Respondent Nos. 1 and 2 therefore issued advertisement for the sale of the assets i.e. land and building which was mortgaged as well as the plant and machinery which was hypothicated by respondent No.4 while exercising powers under section 29 of the SFC Act, 1951 by issuing an advertisement dated 07.04.2003.

3.6 The petitioner challenged the action of issuance of advertisement by respondent Nos. 1 and 2 by preferring Special Civil Application No. 5550 of 2003 before this Court. However, the said petition was dismissed by order dated 02.05.2003 on the ground that there was no material on record even to prima facie show that the petitioner bank had charge over any of the plant and machinery and building of respondent No.4-company at Ankeshwar, GIDC. It was also observed in the order passed by this Court that the petitioner-Bank did not make any effort to recover its dues from the company and no action whatsoever was taken by the petitioner-Bank against respondent No.4-company. The petition was therefore dismissed holding that the same was frivolous and filed with an oblique motive by the petitioner.

3.7 The petitioner thereafter within few days from the order passed by this Court on 02.05.2003 moved Board of Nominees-Arbitration Tribunal on 21.05.2003 to initiate arbitration proceedings against respondent No.4-company which was registered as Arbitration Case No. 841 of 2003 and subsequently registered as Arbitration Case No. 20 of 2005.

3.8 Initially, the Arbitrator granted ad interim injunction restraining respondent Nos. 1 and 2 from dealing with the property which were subject-matter of sale by the respondent Nos. 1 and 2 under section 29 of the Act, 1951. The respondent Nos. 1 and 2 preferred Special Civil Application No. 8063 of 2003 ag