Karnataka High Court
M/S Union Bank Of India vs M/S Karol Lubricants India Ltd on 11 December, 2018
Bench: L.Narayana Swamy, P.B.Bajanthri
1
IN THE HIGH COURT OF KARNATAKA, BENGALURU
DATED THIS THE 11TH DAY OF DECEMBER 2018
PRESENT
THE HON'BLE MR. JUSTICE L.NARAYANA SWAMY
AND
THE HON' BLE MR. JUSTICE P.B.BAJANTHRI
WRIT PETITION NOS.54161-54162 OF 2017 (GM-DRT)
A/W
WRIT PETITION NO.26653 OF 2017 (GM-DRT)
IN W.P. NOS.54161-54162/ 2017
BETWEEN:
1. M/S. UNION BANK OF INDIA
HAINS ROAD BRANCH
BENGALURU - 560 001.
2. THE AUTHORIZED OFFICER
M/S. UNION BANK OF INDIA
ASSET RECOVERY BRANCH
II FLOOR, NO.583/584
POOJA COMPLEX, AVENUE ROAD
BENGALURU - 560 002.
... PETITIONERS
(BY SHRI. K.B. MONESH KUMAR, ADVOCATE )
AND
1. M/S. KAROL LUBRICANTS INDIA LTD.
(A COMPANY REGISTERED UNDER THE
2
COMPANIES ACT)
NO. 111 SHAMUR ROAD
K.G.HALLI
NEAR DR. AMBEDKAR MEDICAL COLLEGE
BENGALURU - 560 045
REP. BY ITS MANAGING DIRECTOR.
2. KOTAK MAHINDRA BANK LTD.
I FLOOR, CEEBROS CENTER,
NO.39, MONTIETH ROAD, EGMORE
CHENNAI - 600 008
REP. BY ITS VICE PRESIDENT.
3. M/S. SHUBANKAR ESTATES PVT. LTD.
(A COMPANY REGISTERED UNDER THE
COMPANIES ACT)
NO.37/2-1, ARCHANA COMPLEX
4TH CROSS, LAL BAG ROAD
BENGALURU - 560 027
REP. BY ITS MANAGING DIRECTOR.
.. RESPONDENTS
(BY SHRI. A. MADHUSUDHANA RAO, ADVOCATE FOR R.1,
SHRI. O.P.AGARWAL, ADVOCATE BY M/S. KHAITAN
& CO. FOR R.2 AND SHRI. PARAS JAIN, ADVOCATE
FOR R.3.)
THESE WRIT PETITIONS ARE FILED UNDER
ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA,
PRAYING TO QUASH THE ORDER PASSED IN
I.A.1046/2017 IN R.A.(SA) 7/2015 DATED 10.10.2017 AT
ANNEXURE- J ETC.
IN WRIT PETITION NO.26653 OF 2017
BETWEEN :
M/S. SHUBANKAR ESTATES PVT. LTD.
A REGISTERED PRIVATE LIMITED COMPANY
3
HAVING ITS REGISTERED OFFICE AT
`ARCHANA COMPLEX' 37/12-1,
4TH CROSS, LALBAGH ROAD
BANGALORE - 560 027
REPRESENTED BY ITS DIRECTOR,
SRI. KARAN RAMSISARIA,
AGED ABOUT 27 YEARS.
... PETITIONER
(BY SRI. PARAS JAIN, ADVOCATE.)
AND
1. M/S. KAROL LUBRICANTS INDIA LTD.
(A COMPANY REGISTERED UNDER THE
COMPANIES ACT, 1956)
# 111 SHAMPUR ROAD, K.G.HALLI
NEAR DR. AMBEDKAR MEDICAL COLLEGE
BANGALORE - 560 045
REP. BY ITS MANAGING DIRECTOR
MR. ANWAR SHARIEF.
2. M/S. UNION BANK OF INDIA
HAINES ROAD BRANCH
BANGALORE - 560 051
REPRESENTED BY ITS AUTHORISED OFFICER.
3. KOTAK MAHINDRA BANK LTD.
I FLOOR, CEEBROS CENTER,
NO.39, MONTIETH ROAD, EGMORE
CHENNAI - 600 008
REP. BY ITS AUTHORISED OFFICER.
4. M/S. UNION BANK OF INDIA
ASSET RECOVERY BRANCH, 2ND FLOOR
NO.583/584, POOJA COMPLEX
AVENUE ROAD, BANGALORE - 560 002
REPTD. BY ITS AUTHORIZED OFFICER.
...RESPONDENTS
4
(BY SHRI. A. MADHUSUDHANA RAO, ADVOCATE FOR R.1,
R-2 SERVED AND UNREPRESENTED
SHRI. O.P.AGARWAL, ADVOCATE BY M/S. KHAITAN
& CO. FOR R.3 AND SHRI. K.B. MONESH KUMAR,
ADVOCATE FOR R.3.)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH
THE PORTION OF THE ORDER DATED 17.05.2017 PASSED
BY THE DEBT RECOVERY APPELLATE TRIBUNAL, CHENNAI,
VIDE ANNEX.G WHEREIN DRAT HAS GRANTED INTEREST
AT 12% ETC.
THESE PETITIONS COMING ON FOR ORDERS THIS
DAY, NARAYANA SWAMY J, PASSED THE FOLLOWING;
JUDGMENT
In W.P.Nos.54161-54162 OF 2017, I.A. 1/18 is filed by the parties under Order 23 Rule 3 read with Section 151 of the Code of Civil Procedure, 1908 and Articles 226 and 227 of the Constitution of India, praying to compromise the dispute. They submit that these petitions may be disposed of in terms of the compromise.
2. W.P. No.26653/2017 is filed praying for a direction to quash the order dated 17/05/2017 passed by the Debt Recovery Appellate Tribunal Chennai in RA(SA) -133/2014 with regard to interest granted at 12%.
53. In W.P.Nos.54161-54162 OF 2017, the terms and conditions of the compromise as set out in paragraph -7 of the compromise petition reads as under;
"7. It is submitted that the terms of compromise settlement are as extracted hereunder to the humble indulgence of this Hon'ble Court :
i) The I Respondent (Borrower) and the Directors (Guarantors) of the I Respondent (Borrower), on execution hereof, hereby gives consent for confirming the Sale of the Factory Land and Building as per the Sale Certificate dated 11.09.2013 and registered on
04.12.2013 in favour of the III Respondent (Auction Purchaser). The I Respondent (Borrower) and the Directors (Guarantors) of the I Respondent (Borrower), if necessary, shall execute necessary Deed/s, Document/s, Agreement/s of Conveyance of the immovable property sold including the factory Land and Building already sold under SARFAESIA in favour of the III Respondent (Auction Purchaser). The I Respondent (Borrower) and the Guarantors shall do all that is necessary so as to ensure conveyance of title of immovable 6 property including factory Land and Building n favour of the III Respondent (Auction Purchaser).
ii)The III Respondent (Auction Purchaser) be directed to handover the movables/machineries embedded in the earth available in the area of Factory Land and Building to I Respondent (Borrower) on "As is Where is and As is What is" basis and also "Without Recourse" basis. The I Respondent (Borrower) hereby undertakes not to raise any claims, whatsoever, against the Petitioners/ II Respondent and its Officers and shall accept the movables/machineries on "As is Where is and As is What is' basis.
iii)The I Respondent (Borrower) and the Directors/Guarantors of the I Respondent (Borrower), jointly and severally, shall pay a total sum of Rs.1,00,00,000.00 (Rupees One Crore only) on or before 31.12.2018 as follows to the I Petitioner as a Lead Bank towards settlement of liabilities of the I Petitioner and II Respondent :
7a) Rs.5,00,000.00 (Rupees Five Lakhs only) on execution of these presence.
b) The Balance amount of Rs.95,00,000.00 on or before 31.12.2018.
c) On payment of entire settlement amount of Rs.1,00,00,000.00 (Rs. One Crore only) being the one time settlement amount within the time period mentioned above, the Consortium of Banks i.e. the I Petitioner and II Respondent shall withdraw the Recovery Proceedings initiated at DRT, Bengaluru against the I Respondent (Borrower) and Guarantors and shall issue necessary "No Dues Certificate" in favour of the I Respondent (Borrower) and Guarantors. Similarly, the I Respondent (Borrower) and Guarantors shall also withdraw the litigations, if any, filed against the Consortium of Banks and its Officers and the I Respondent (Borrower) and Guarantors shall not have any claim, whatsoever, against the Consortium of Banks and its Officers.
d) In the event of default by the I Respondent (Borrower) and Guarantors in making the payment of any of the installments of the 8 settlement amount of Rs.1.00 crores as mentioned above, the Consortium of Banks i.e., the I Petitioner and II Respondent shall have right to reverse the waiver/relief's/concessions of dues and restore the Original Liabilities as per the Recovery Certificate issued by the Hon'ble DRT Bengaluru and continue its Recovery Proceeding to recover the total outstanding dues payable under the Recovery Certificate issued by Hon'ble DRT less any amounts paid under these presence, accordingly from the I Respondent (Borrower) and Guarantors. The amounts paid before the occurrence of any such delay/default by the I Respondent (Borrower) and Guarantors (Certificate Debtors) shall be adjusted towards the decreed dues of the Certificate Holder Banks i.e. I Petitioner and II Respondent."
4. Parties are present before the Court. After filing of this compromise petition, the Director and Managing Director of the Company/respondent No.1 passed away.
Hence, by Board Resolution, they nominated the present Managing Director by name Sayeeda Banu, who also 9 agreed the compromise entered into by resolution dated 09/12/2018, which is produced along with a memo and also death certificate.
5. In the light of the compromise entered into between the parties, W.P.Nos.54161-54162/2017 are disposed of.
In view of the compromise entered into between the parties, W.P.No.26653/2017 stands disposed of. Bank is directed to deliver original documents to the respondents.
Sd/-
JUDGE Sd/-
JUDGE Msu