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Gauhati High Court

M/S. Modern Construction Co. And Anr vs The National Small Industries ... on 4 April, 2019

Author: Ujjal Bhuyan

Bench: Ujjal Bhuyan

                                                               Page No.# 1/3

GAHC010111922018




                      THE GAUHATI HIGH COURT
  (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

                         Case No. : WP(C) 3453/2018

         1:M/S. MODERN CONSTRUCTION CO. AND ANR.
         A PARTNERSHIP FIRM HAVING ITS REGISTERED AND PRINCIPLE PLACE
         OF BUSINESS AT RADHAKUNJ, NEAR AMDC LTD., JANAPRIYA PATH,
         DISPUR, GUWAHATI-781006 (ASSAM) AND IS REPRESENTED BY ITS
         PARTNER, SRI RAJ KUMAR AGARWALLA

         2: RAJ KUMAR AGARWALLA
          S/O LATE PURANMAL AGARWALLA
          R/O RADHAKUNJ
          NEAR AMDC LTD.
          JANAPRIYA PATH
          DISPUR
          GUWAHATI-781006 (ASSAM

         VERSUS

         1:THE NATIONAL SMALL INDUSTRIES CORPORATION LTD. AND 4 ORS.
         A COMPANY INCORPORATED UNDER THE INDIAN COMPANIES ACT, 1956,
         HAVING ITS REGISTERED OFFICE AT NSIC BHAWAN, NEAR OKHLA
         INDUSTRIAL ESTATE, NEW DELHI-110020 AND HAVING ONE OF ITS
         ZONAL OFFICE AT 3RD BYE LANE, INDUSTRIAL ESTATE,
         BAMUNIMAIDAN, GUWAHATI-781021, KAMRUP (M), ASSAM, AND IS
         REPRESENTED BY ITS CHAIRMAN CUM MANAGING DIRECTOR

         2:THE SR. MANAGER
          NSIC LIMITED
          ZONAL OFFICE AT 3RD BYE LANE
          INDUSTRIAL ESTATE
          BAMUNIMAIDAN
          GUWAHATI-781021
          KAMRUP (M)
         ASSAM
                                                                                   Page No.# 2/3

            3:THE STATE OF ASSAM
             REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE GOVT.
            OF ASSAM
             PUBLIC ROADS DEPARTMENT
             DISPUR
             GUWAHATI-6

            4:THE CHIEF ENGINEER
             PWD (ROADS)
            ASSAM
             CHANDMARI
             GUWAHATI-3

            5:THE CHIEF ENGINEER
             PWD (BORDER ROADS AND NEC WORSK)
            ASSAM CHANDMARI
             GUWAHATI-

Advocate for the Petitioner   : MR. S P ROY

Advocate for the Respondent : GA, ASSAM


                                    BEFORE
                       HONOURABLE MR. JUSTICE UJJAL BHUYAN

                                            ORDER

Date : 04-04-2019 Heard Mr. S.P. Roy, learned counsel for the petitioners and Mr. P.J. Barman, learned counsel for National Small Industries Corporation Ltd (Corporation). Also heard Ms. K. Phukan, learned Govt. Advocate, Assam.

In connection with construction works, petitioner No.1 availed financial assistance from the Corporation initially to the extent of Rs.150 lakhs and thereafter extended to Rs.300 lakhs. Petitioners provided bank guarantees covering the aforesaid amount. For one reason or the other, there was either delay or default in repayment of the financial assistance availed by the petitioners for which Corporation sought to invoke bank guarantees. At that stage, petitioners approached this Court by filing the present writ petition.

On 30.05.2018 notice was issued and an interim order was passed restraining the Corporation from invoking the bank guarantees.

On 14.03.2019, the following order was passed:-

Page No.# 3/3 "Heard Mr. S.P. Roy, learned counsel for the petitioner. Also heard Mr. P.J. Barman, learned counsel appearing for the respondents. Mr. Vinod Vyas, Senior Branch Manager of NSIC, Guwahati, is also personally present and is heard.
Mr. Barman submits that the petitioner has not complied with the direction of this Court dated 20.08.2018 passed in I.A.(Civil) No.2930/2018.
Mr. Roy, however, submits that though the entire amount could not be liquidated, there is no outstanding for a period more than 360 days and, therefore, in terms of the agreement, the account of the petitioner is regular.
Mr. Vyas has submitted that there is a guideline of Reserve Bank of India requiring making of provision in the books of account in case outstanding on any account is more than 210 days. However, the document is not produced before the Court.
It appears that as of today, the balance amount for more than 210 days but less than 360 days is Rs.1,50,52,099.42 and it is submitted by Mr. Vyas that by 31.03.2019 the amount will be Rs.2.10 crores approximately, if no further payment is made by the petitioner.
Mr. S.P. Roy, learned counsel for the petitioner submits that the petitioner will try his utmost to pay a sum of Rs.2 crores by 29.03.2019.
In view of the submissions made by the learned counsel for the parties, it is considered appropriate to direct listing of this case on 29.03.2019. It is expected that by then the petitioner will pay the amount indicated by Mr. Roy."
Today when the matter is called upon, learned counsel for the parties have informed the Court that petitioners have cleared all outstanding dues of the Corporation. Therefore, there is no requirement or necessity for invocation of the bank guarantees.
In view of above, this writ petition is closed.
JUDGE Comparing Assistant