Calcutta High Court
Mountview Tracom Llp vs Apl Metals Limited on 5 April, 2022
Author: Shekhar B. Saraf
Bench: Shekhar B. Saraf
ODC 26
EC/49/2022
IN THE HIGH COURT AT CALCUTTA
ORDINARY ORIGINAL CIVIL JURISDICTION
COMMERCIAL DIVISION
MOUNTVIEW TRACOM LLP
VS
APL METALS LIMITED
BEFORE:
The Hon'ble JUSTICE SHEKHAR B. SARAF
Date : 5th April, 2022.
Appearance:
Ms. Radhika Singh, Adv.
Ms. Adreeka Pandey, Adv.
Ms. Mandeep Raw, Adv.
The Court: Heard counsel appearing on behalf of the parties.
On the last occasion this Court had directed the judgment debtor to
take instructions with regard to the manner in which they would secure Rs. 8
crores that is payable to the award holder. Counsel appearing on behalf of the
respondent has submitted that their bank is unable to provide a bank
guarantee. Counsel further seeks time for a week to take further instructions in this matter. The answer received from the respondent is not sufficient and clearly shows a callous approach to the entire matter. It is recorded in the earlier orders that the company is running a business wherein the revenue of the company is Rs.633 crores.
In light of the same, the award debtor who is enjoying a cash credit facility with Indian Bank for a sum of Rs.114 crores shall not be allowed to 2 avail credit to the extent of Rs. 8 crores representing the decree of the decree holder. This margin shall also be maintained while availing of the cash credit facility, as if the above amount lies in the account to the credit of the decree holder.
In case the bank wants to cancel the cash credit facility for any default on the part of the judgment debtor, the above amount would immediately be set apart in a separate account to the credit of the petitioner and thereafter the facility be cancelled.
This order will not come in the way of any transaction between the Bank and the judgment debtor. Any change in this position should be made by the bank upon notice to the decree holder. The above order passed by me is keeping in inconsonance with an order passed by the Hon'ble Justice I. P. Mukerji, J. in Cliff Navigation S.A. vs. LMJ International Ltd. (GA No.3167 of 2012, EC No.302 of 2012) dated 24th January, 2013. It is to be noted that the order dated 24th January, 2013 was upheld by the Supreme Court by an order dated 9th February, 2015.
The matter is made returnable two weeks hence.
The judgment debtor will be present on the returnable date.
(SHEKHAR B. SARAF, J.) sp/