Section 11 of the O.P.I.D. Act only allows for the cancellation of entire ad-interim attachments upon satisfactory security, and not for partial releases.

JUDGMENT :

Sanjeeb K. Panigrahi, J.

1. The present First Appeal (FAO) has been filed challenging the order dated 21.04.2025 passed by the learned Designated Court under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011, whereby the application filed by the Appellant under Section 11 of the said Act came to be rejected.

I. FACTUAL MATRIX OF THE CASE

2. The brief facts of the case are as follows:

(a) The Appellant Company had approached the Commission of Inquiry in Inquiry Case No. 19(E)/2018 seeking permission to sell its properties in order to facilitate repayment of the amounts allegedly due to the depositors. The Commission of Inquiry granted such permission on 03.12.2018.

(b) Subsequently, the net proceeds of the sale were deposited before the Respondent by means of a Demand Draft amounting to Rs.5,00,00,000 (Rupees Five Crores Only) drawn on HDFC Bank.

(c) The Respondent furnished details of three bank accounts in the State of Andhra Pradesh in which a further sum of Rs. 6,53,06,883 (Rupees Six Crore Fifty Three Lakhs Six Thousand Eight Hundred and Eighty Three Only) was kept for distribution among the depositors. The Appellant acknowledged this position in its Letter No. 239 dated 15.07.2024.

(d) The Appellant has consistently acted in compliance with the directions of the Commission of Inquiry to refund the net sale proceeds to the Respondent. The sale of its properties has been permitted on multiple occasions under the supervision of this Court, including in CRLMC No. 1252 of 2016 by order dated 01.09.2023 and in W.P.(C) No. 9910 of 2024 by order dated 05.08.2024, each time for facilitating repayment to the depositors.

(e) In the counter affidavit filed by the Respondent in W.P.(C) No. 18277 of 2023, the Respondent acknowledged that the Appellant had been taking steps to refund the amounts due to the depositors and also indicated the specific sums deposited. Reference was made to earlier orders of this Court in CRLMC No. 1252 of 2016 dated 28.07.2017 and in W.P.(C) No. 18277 of 2016 dated 01.09.2023, which recorded the progress made towards repayment.

(f) In a further attempt to pay the depositors, the Appellant filed W.P.(C) No. 9910 of 2024. By order dated 05.08.2024, this Court directed the Sub-Registrar, Ganjam to allow registration of the sale deeds presented by the Appellant in favour of the proposed buyers and set aside the earlier order refusing registration. The registration could not be completed on account of the ill health of the director of the Appellant Company and, in the meantime, an ad-interim order of attachment dated 22.08.2024 came to be passed.

(g) The ad-interim order of attachment dated 22.08.2024 includes the properties mentioned in the sale deeds. Due to the embargo under Rule 4 of the Odisha Protection of Interests of Depositors (in Financial Establishments) Rules, 2013 on registration of sale deeds that are the subject matter of an ad-interim attachment, the registration could not be completed.

(h) The proposed buyers of the properties involved in W.P.(C) No. 9910 of 2024 had made considerable investments towards stamp duty and registration charges for presentation of the sale deeds. The sale of these lands is also relevant for payment of the sale consideration to the Appellant, which in turn is required for refunding the amounts due to the depositors.

(i) The Finance Department, Government of Odisha, by letter dated 14.03.2022 bearing No. 6058 addressed to the Superintendent of Police, clarified that the properties sought to be sold by the Appellant were not previously the subject ma