Honble LAKSHMANAN, C.J.–This writ petition was filed by the petitioner with the following prayers:-

(a) Dismiss the recovery application filed by Respondent No.2 before the Respondent No.1 (Anx. 1) as not maintainable/returnable on account of notification under Rajasthan Relief Undertaking Act issued by the Government of Rajasthan (Anx. 3).

(b) Quash and set aside the order dated 13.10.2000 marked as Annexure 6 passed by the Respondent No.1.

(c) Quash and set aside the order dated 6.9.2000 marked as Annexure-2 passed by the Respondent No.1.

(d) Pass such other orders as the Court deems just and proper in the facts and circumstances of the case.

(2). The State Bank of Bikaner and Jaipur filed Original Application No. 431/2000 and prayed for the following reliefs:-

(i) Issue a Certificate for recovery of the aggregate amount of Rs. 25,86,92,370.68 (Rupees Twenty Five Crores Eighty Six Lakhs Ninety two thousand three hundred seventy and paisa sixty eight only) as Principal amount outstanding as on 8.08.2000 as per the provisions of Section 19(20) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 against the Defendant Nos. 1 to 3 jointly and severally;

(ii) Award interest pendentelite and future at the rate of 20.05% per annum with Quarterly rates in favour of the applicant Bank from 9.08.2000 till the date of actual and final recovery besides all costs and expenses incurred/ to be incurred against the Defendant Nos. 1 to 3 jointly and severally;

(iii) Issue a direction to the Defendant No.5 Industrial Finance Corporation of India acting for itself and as agents of other Financial Institutions, that in the event of sale of the immovable properties and assets on which under joint mortgage they have first charge in their favour and the applicant Bank has the second charge, the sale proceeds may be distributed as per the terms and conditions of joint mortgage and the share of the applicant Bank be paid to it for adjustment against the dues of the Defendant Company;

(iv) Realise the dues as per the Recovery Certificate, by sale of the properties, stocks in trade etc., which have been hypothecated in favour of the applicant Bank;

(v) In case the sale proceeds of the hypothecated assets and goods are found insufficient to fully satisfy the entire decretal amount with all interests, costs, charges and expenses etc., then the balance so found due to the applicant Bank under the Recovery Certificate may be ordered to be jointly and severally recovered and realised from the person and other properties of the Defendant Nos. 2 and 3 under the law;

(vi) Award costs of this application to the applicant Bank, and

(vii) Award such other and further reliefs, as may be deemed just and expedient in the facts and circumstances of the present case so as to give full relief to the applicant Bank.

(3). Pending final decision of the original application, the State Bank of Bikaner and Jaipur (hereinafter called `the Bank) also sought the interim prayers of order of attachment before judgment attaching the movable and immovable assets and properties of the defendants therein and to restrain the Defendants No.1 to 3 by order of injunction under Section 19(12) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 debarring them from transferring alienating or otherwise dealing with or disposing of the hypothecated stocks and assets, machineries etc. till the recovery of the dues of the Bank.

(4). The original application was filed by the Bank for recovery of Rs. 25,86,92,370/- from the petitioner Modern Syntax (India) Ltd. and from the guarantors. A counter affidavit was filed by one Shri H.S. Ranka wherein an objection has been taken that since the notification dated 15.2.2000 had been issued by the Government of Rajasthan and by issue of these two notifications two divisions namely, Yarn Division and Synthetic Division of the petitioner company have been declared Relief Undertakings, therefore, application for recovery was n

Click Here to Read the rest of this document