Gujarat High Court
Cengres Tiles Limited vs Collector And District Magistrate, ... on 4 February, 2022
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
C/SCA/1502/2022 ORDER DATED: 04/02/2022
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 1502 of 2022
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CENGRES TILES LIMITED
Versus
COLLECTOR AND DISTRICT MAGISTRATE, MEHSANA
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Appearance:
MR ZUBIN F BHARDA(159) for the Petitioner(s) No. 1
MR DHAWAN JAYSWAL, AGP for the Respondent(s) No. 1,2
MR ANAND B GOGIA(5849) for the Respondent(s) No. 3
MS MUSKAN A GOGIA(6624) for the Respondent(s) No. 3
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
Date : 04/02/2022
ORAL ORDER
1.Heard learned advocate Mr. Zubin Bharda for the petitioner, learned Assistant Government Pleader Mr. Dhawan Jayswal for the respondent-State and learned advocate Mr. Anand B. Gogia for respondent No.3 through video conference.
2.This Court passed the following order dated 24.01.2022:
"Heard learned advocate Mr.Zubin F. Bharda for the petitioner, learned Assistant Government Pleader Mr.Trupesh Kathiriya for the respondent Nos.1 and 2 and learned advocate Mr.Anand B. Gogia for the respondent No.3-Bank who appears on advance copy.Page 1 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022
C/SCA/1502/2022 ORDER DATED: 04/02/2022 1.1. Learned advocate Mr.Bharda submitted that the petitioner is ready and willing to take benefit of One Time Settlement (OTS) proposal given by the respondent No.3-Bank by letter dated 17th January, 2022 (page No.56) under SBI OTS Scheme 2021 to the petitioner.
1.2. Learned advocate Mr.Bharda further states that the petitioner shall file necessary proposal along with the undertaking before this Court within a period of one week from today.
2.1. Learned advocate Mr.Gogia, under instructions from the respondent No.3- Bank, submitted that if the petitioner is ready and willing to take benefit of the SBI OTS Scheme 2021 as per the proposal given by the Bank vide letter dated 17th January, 2022, the respondent No.3-Bank shall not take any action for taking possession of the mortgaged property of the petitioner for recovery of the dues of the respondent No.3-Bank amounting to Rs.31,13,15,215.41/- as on 31.03.2021.
2.2. Learned advocate Mr.Gogia has also tendered an affidavit of the respondent No.3-Bank to the above effect. The same is ordered to be taken on record.
3. In view of the above submissions, issue Notice, returnable on 1 st February, 2022. Learned Assistant Government Pleader Mr.Trupesh Kathiriya waives service of notice for respondent Nos.1 and 2 and learned advocate Mr.Gogia waives service of notice for respondent No.3.
4. Learned Assistant Government Pleader Mr.Kathiriya shall inform the respondent Page 2 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022 C/SCA/1502/2022 ORDER DATED: 04/02/2022 Nos.1 and 2 not to take possession of the property of the petitioner in view of the statement made by learned advocate Mr.Gogia. To be listed on top of the Board"
3.The respondent-Bank filed short affidavit raising preliminary objection with regard to maintainability of the petition and it is further averred in the affidavit that the petitioner has not correctly stated the facts.
4.Learned advocate Mr. Bharda invited the attention of the Court to the undertaking filed on behalf of the petitioner on 30.01.2022 which reads as under:
"I, Ashish Chandravadan Patel, Director of Cengres Tiles Limited, A Company registered under the Companies Act, 1956, having its Registered and corporate office situated at D/401, Gan 2sh Meridian, Opposite Gujarat High Court, Sola, S.G.Highway, Ahmedabad, petitioner herein, as undertaken before this Hon'ble Court submit the undertaking which is as under:
1. The petitioner Company Cengress Tiles Ltd., has submitted a proposal before the Respondent No.3 / State Bank of India, Stressed Assets Management Branch, in response to the proposal received from the Bank dated 17.01.2022 informing the petitioner Company that Page 3 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022 C/SCA/1502/2022 ORDER DATED: 04/02/2022 the dues of the petitioner company to the Bank are eligible for settlement under the SBI OTS Scheme, 2021. The petitioner upon acceptance of the proposal submitted by it to the Bank will be making good the OTS amount as per the offer made by the petitioner, which is in accordance with the terms and conditions mentioned in the SBI OTS Scheme, 2021. Hereto annexed and marked as Annexure - A is the copy of the proposal submitted by the petitioner to the State Bank of India, Stressed Assets Management Branch for availing the SBI OTS Scheme, 2021, which also includes proposal to be given to the Axis Bank, which is the second bank under the consortium of Bank, which the petitioner also is ready and willing to discharge the liability upon acceptance of the proposal by the said Bank.
2. The petitioner craves leave of this Hon'ble Court to add, alter, amend, remove, delete, rescind or modify any or all averments stated hereinabove.
Solemnly affirmed at Ahmedabad on this the 30" day of January, 2022."
5.The respondent-Bank thereafter by letter dated 02.02.2022 rejected the proposal of the petitioner offering Rs. 23.19 crores for State Bank of India towards settlement of the dues contrary to the proposal of OTS given by the State Bank of India vide letter dated 17.01.2022 on the ground that the said proposal is non-discretionary and non-
Page 4 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022C/SCA/1502/2022 ORDER DATED: 04/02/2022 discreminatory. A copy of the letter dated 02.02.2022 is placed on record by learned advocate Mr. Gogia.
6.Learned advocate Mr. Bharda thereafter has tendered another undertaking dated 03.02.2022 wherein it is stated as under:
"I, Chirag Maganbhal Patel, Director of Cengres Tiles Limited, having its Registered and corporate office situated at 0/401, Ganesh Meridian, Opposite Gujarat High Court, Sols, S.G.Highway, Ahmedabad, do hereby submit a fresh undertaking as under:
1. The proposal for OTS (One Time Settlement) received from the State Bank of India dated 17.01.2022 is acceptable to the petitioner company and the petitioner company has also calculated from its own records the amount that would be due and payable to the Bank, which is mentioned in the fresh proposal submitted by the petitioner to the Bank dated 03.02.2022. Hereto annexed and marked as Annexure - A is the copy of the proposal submitted by the petitioner to the Bank. The petitioner further undertakes to deposit the outstanding amount within the stipulated time period i.e. on or before 21.02.2022 as is specified in the OTS Proposal issued by the State Bank of India dated 17.01.2022.
2. The petitioner humbly urges before this Hon'ble Court to discard and not take into consideration the earlier Page 5 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022 C/SCA/1502/2022 ORDER DATED: 04/02/2022 undertaking filed on 30.01.2022 as the proposal submitted by the petitioner which was annexed along with the said undertaking was outright rejected by the Respondent Bank.
3. The petitioner craves leave of this Hon'ble Court to add, alter, amend, remove, delete, rescind or modify any or all averments stated hereinabove.
Solemnly affirmed at Ahmedabad on this the 03" day of February, 2022."
7.The letter dated 03.02.2022 addressed to the State Bank of India is also annexed along with undertaking wherein it is informed to the Bank to rectify the OTS proposal applying applicable discount in the principal amount in the proposal of OTS sanctioned by the bank.
8.According to the petitioner, there were minor working mistakes noticed by the petitioner in the proposal and the total outstanding would be Rs. 25,77,63,676/- and not Rs. 31,13,15,215.41 as per the proposal of OTS dated 17.01.2022 of the Bank.
9.Learned advocate Mr. Bharda submitted that the petitioner has time upto 21.02.2022 to accept the proposal and comply with terms and Page 6 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022 C/SCA/1502/2022 ORDER DATED: 04/02/2022 conditions of the proposal of OTS dated 17.01.2022 and therefore, this petition may be kept after 21.02.2022 so as to enable the petitioner to comply with the proposal of OTS given by the respondent-State Bank of India as per the State Bank of India OTS Scheme 2021.
10. On the other side, learned advocate Mr. Gogia submitted that the petitioner is not ready and willing to accept the non- discretionary and non-discreminatory proposal OTS proposal of payment of Rs. 31,13,15,215.41 which is approved by the Board of Directors of the State Bank of India and none of the officer of the State Bank of India has the power to negotiate the said proposal and the terms contained in the letter dated 17.01.2022.
11. It was further submitted that looking to the undertakings filed by the petitioner before this Court, it is apparent that the petitioner is not ready and willing to accept the proposal of OTS for payment of Rs. 31,13,15,215.41 and the petitioner just wants to vile away the time by finding faults and defects in the proposal of OTS of the State Bank of India.
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12. I have heard learned advocates for the respective parties and also perused the proposal as well as the undertakings dated 30.01.2022 and 03.02.2022 filed by the petitioner after the order passed on 24.01.2022.
13. The undertakings filed by the petitioner are contrary to the proposal of OTS dated 17.01.2022 of by the State Bank of India. When the matter was argued on 24.01.2022, it was made clear by the learned advocate for the petitioner that the petitioner is ready and willing to accept the OTS proposal for payment of Rs. 31,13,15,215.41 as per the letter dated 17.01.2022. On showing such willingness on behalf of the petitioner, this Court showed indulgence of restraining the respondent bank from taking the possession of the property of the petitioner as the respondent-bank has also agreed that if the petitioner is willing to pay the amount as per the proposal of OTS dated 17.01.2022, no coercive action would be taken.
14. However, in view of the undertakings filed by the petitioner and the offer given by the petitioner to pay the less amount than Page 8 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022 C/SCA/1502/2022 ORDER DATED: 04/02/2022 what is sanctioned by the State Bank of India amounting to Rs. 31,13,15,215.41 as against total outstanding dues of more than Rs. 57 crores, it is apparent that the petitioner is not ready and willing to accept the proposal of OTS as on today. If the petitioner wants to re-consider and accept the proposal as per the non-discretionary and non-discreminatory proposal of OTS as given by the State Bank of India on 17.01.2022, the petitioner can do so on or before 21.02.2022 as per the terms and conditions of the sanction letter dated 17.01.2022 given by the State Bank of India which is non negotiable at any circumstance.
15. In view of the above, no interference is required to be made in this petition as it is between the petitioner and the State Bank of India as to whether to proceed according to OTS proposal or not. The petition is therefore disposed of. Notice is discharged. Interim relief stands vacated.
(BHARGAV D. KARIA, J) JYOTI V. JANI Page 9 of 9 Downloaded on : Sat Feb 05 20:44:35 IST 2022