Bombay High Court
Axis Bank Ltd vs Navjyoti Commodity Services Ltd. And 12 ... on 27 November, 2019
Author: G. S. Patel
Bench: G.S. Patel
2-CARBPL1210-19.DOC
Atul
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
COMM ARBITRATION PETITION (L) NO. 1210 OF 2019
Axis Bank Ltd ...Petitioner
Versus
Navjyoti Commodity Services Ltd & Ors ...Respondents
Mr Atul Damle, Senior Advocate, with MB Kale, Juhi Bhogale &
Akshata Teli, i/b OM Gujar Law Chambers, for the Petitioner.
Mr Cyrus Ardeshir, i/b Vishal S Shriyan, for Respondents Nos. 1 to 8.
Mrs Usha Srivastava, i/b Consulta Juris, for Respondent No. 12.
Mr Amitkumar Detke, Manager-Legal Support, Axis BankLtd., is
present.
CORAM: G.S. PATEL, J.
DATED: 27th November 2019 PC:-
1. There is a further afdavit dated 20th November 2019 of one Mr Ashok Pawar, Chief Executive Ofcer of Navjyoti Commodity Management Services Limited, the 1st respondent.
2. In this he discloses how third parties have come into possession of the godowns at serial Nos. 1 to 3 of the list noted in the previous order dated 6th November 2019. The Anusree godown in Andhra Pradesh at serial No. 1 was in possession of the 1st Page 1 of 4 27th November 2019 ::: Uploaded on - 28/11/2019 ::: Downloaded on - 29/11/2019 00:24:59 ::: 2-CARBPL1210-19.DOC respondent. It has apparently been re-possessed by respondent No. 10, one Srinivas Reddy. Though he is a party to this petition and has been served, he is absent. There is some recital of an altercation or disturbance at site. It seems that the owners started obstructing the petitioner's representatives from making a stock inspection.
3. The godowns at serial Nos. 2 and 3 are also in Andhra Pradesh but at diferent locations. They are said to be in the physical possession of respondent No. 13, one Star Agriwarehousing and Collateral Management Ltd. This is the collateral security manager of the Karur Vysya Bank Ltd. Mr Damle for the petitioner points out that Axis Bank has no concern with the possession of the godowns themselves but only with the commodities warehoused in each. It is his submission that the Axis Bank has pledged over all the contents of the godowns. Equally, on behalf of the Karur Vysya Bank Ltd, respondent No. 12, Mrs Srivastava does not claim that Karur Vysya Bank has security over all the contents of the two godowns of which that bank's collateral security manager is in possession.
4. This position cannot continue. There is no option but to appoint the Court Receiver to take an inventory (and at this stage to do nothing further) in respect of the three godowns noted above.
5. The Court Receiver will act on production of an authenticated copy of this order. All costs of the Receiver and the Receiver's representatives will be borne by the petitioner in the frst instance. The Receiver will submit a report of what is found in these Page 2 of 4 27th November 2019 ::: Uploaded on - 28/11/2019 ::: Downloaded on - 29/11/2019 00:24:59 ::: 2-CARBPL1210-19.DOC godowns. Given that these are commodities, I expect a general or estimated assessment of what is in the godowns and specifcally only an identifcation of the goods in these warehouses that are pledged to the petitioner. In other words, the Court Receiver is not required to note the remaining contents of these warehouses, but only the goods or commodities over which the petitioner claims right.
6. The Court Receiver will take assistance from the local police statement in each jurisdiction, if necessary and if required. Those authorities will act on production of an authenticated copy of this order. The Court Receiver will place his report thereafter.
7. The representatives of the petitioner and the Karur Vysya Bank Ltd will be at liberty to accompany the Court Receiver. The 1st respondent's representatives do not have this liberty.
8. As regards respondent No. 10, he is absent though served. I am making it clear that any attempt by him or his staf to obstruct the Court Receiver will be construed as an act of contempt of this Court and will be dealt with accordingly.
9. Finally Mr Ardeshir points out that the statement made on behalf of the petitioner on the last occasion that it did not know how these third parties came into possession may not be correct since Navjyoti had apparently intimated the petitioner or its representatives about this loss of possession. Those contentions are presently kept open.
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10. List the matter on 15th January 2020 along with the Court Receiver's Report.
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