Karnataka High Court
M/S Corporation Bank vs M/S Gangavathi Sugars Ltd. on 14 December, 2018
Author: G.Narendar
Bench: G.Narendar
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 14TH DAY OF DECEMBER, 2018
BEFORE
THE HON'BLE MR.JUSTICE G.NARENDAR
C.A.NO.285/2018 & C.A.No.549/2016
IN
COP NO.66/1997
IN C.A.NO.285/2018
BETWEEN:
M/S. CORPORATION BANK,
A BODY CORPORATE CONSTITUTED UNDER
THE BANKING COMPANIES (ACQUISITION
AND TRANSFER OF UNDERTAKINGS) ACT
1980 (ACT V OF 1980)
HAVING ITS HEAD OFFICE AT:
MANGALA DEVI TEMPLE ROAD,
MANGALORE, KARNATAKA STATE AND
BRANCHES INTER ALIA ONE AT NO.30,
1ST FLOOR, 2ND CROSS, RALLARAM MEMORIAL
BUILDING, CSI COMPOUND, MISSION ROAD,
BENGALURU - 560 027,
REPRESENTED BY ITS
ASST.GENERAL MANAGER, SRI.SESHACHALA
... APPLICANT
(BY SRI V.B. RAVISHANKAR, ADV.)
AND
M/S. GANGAVATHI SUGARS LTD.
(IN LIQUIDATION)
NO.26-27, 12TH FLOOR,
2
ROJA TOWERS, M.G.ROAD,
BENGALURU - 560 001.
... RESPONDENTS
(BY SMT. ANUPAMA HEBBAR, ADV.)
THIS COMPANY APPLICATION IS FILED UNDER
SECTION 474 OF THE COMPANIES ACT, 1956, R/W
RULE 9 OF THE COMPANIES RULES, PRAYING TO
DIRECT THE RESPONDENT TO RELEASE THE SHARE OF
THE PETITIONER IN THE SALE PROCEEDS OF THE
COMPANY.
IN C.A.NO.549/2016
BETWEEN:
1. MR MAHADEVAPPA
S/O YELLAPPA
AGED ABOUT 60 YEARS
R/A 5TH WARD POST
PRAGATHINAGAR
GANGAVATHI-583268
2. T H M VEERANNA
S/O CHANDRASHEKARIAH
AGED ABOUT 62 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
3. K M NAGABHUSHANA
S/O K M VEERAIAH
AGED ABOUT 60 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
4. RAJA VIJAYA NAIK
S/O RAJA RANGAPPA NAIK
AGED ABOUT 65 YEARS
R/A PRAGATHINAGAR
3
GANGAVATHI-583268
KOPPAL DISTRICT
5. M MALLAPPA
S/O BASAPPA
AGED ABOUT 60 YEARS
JANGAMARKALGUDI
GANGAVATHI TALUK
KOPPAL DISTRICT
6. J NAGAPPA
S/O J VEERANNA
AGED ABOUT 64 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
7. KASHINATH
S/O RAMAIAH
AGED ABOUT 57 YEARSS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
8. VIRUPANNA
S/O SIDDARAMAPPA
AGED ABOUT 62 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
9. UMESH BABU
S/O NARAYANA
AGED ABOUT 52 YEARS
R/A 4-10-12
RAGHAVENDRA BAKERY
LAKSHMI CAMP
WARD 24, GANGAVATHI-583268
10. R KRISHNA
S/O HANUMANTHAIAH
4
AGED ABOUT 51 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
11. VIRUPAKSHAIAH
S/O CHANNABASAVAIAH
AGED ABOUT 58 YEARS
R/A MARALI
GANGAVATHI-583268
12. J MALLAIAH
S/O KANTHAIAH
AGED ABOUT 55 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
13. MAHABOOB BAIG
S/O KHAJA HUSSAIN
AGED ABOUT 70 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
14.P RAJAN
S/O PONNAPPAN
AGED ABOUT 59 YEARS
R/A WARD 12, ISLAMPUR
GANGAVATHI-583268
15. BABU RAO KULKARNI
S/O MALLA RAO
SINCE DECEASED BY HIS LRS
SUBHADARA BAI
AGED MAJOR
MARALI, GANGAVATHI-583268
16. M LINGANNA GOWDA
S/O NAGANA GOWDA
AGED ABOUT 53 YEARS
5
ACHAR NARASAPUR
GANGAVATHI-583268
17. D PRAHALAD RAO
S/O RAGHAVENDRA RAO
AGED ABOUT 58 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
18. PAMPAPATHI
S/O BASAPPA
AGED ABOUT 61 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
19. T NAGARAJ DASAPUR
S/O VENKOBAIAH
AGED ABOUT 52 YEARS
HOSAKERE
GANGAVATHI-583268
20. T KASIM SAB
S/O PEER SAB
AGED MAJOR
R/A H JANTHKAL
GANGAVATHI-583227
21. V B RAJESHWAR RAO
S/O VENKATABASAIAH
AGED ABOUT 65 YEARS
R/A VIDYANAGAR
GANGAVATHI-583268
22. K S VEERANNA
S/O GALAPPA
SINCE DECEASED BY LR
SOWBHAGYAMMA
AGED MAJOR
R/A PRAGATHINAGAR
6
GANGAVATHI-583268
KOPPAL DISTRICT
23. GOLAPPA
S/O BOLANNA
AGED ABOUT 57 YEARS
R/A ACHAR NARSAPUR
GANGAVATHI-583268
24. MONAPPA
S/O RANGAPPA
SINCE DECEASED BY LR
GURAPPA
AGED MAJOR
KARKALLI, SHAHPUR
YADGIRI-585223
25. P SATYANARAYANA
S/O ANJAIAH
AGED ABOUT 55 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
26. A RAMA RAO
S/O VENKAIAH
AGED ABOUT 62 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
27. R HONNAPPA
S/O YELLAPPA
AGED ABOUT 60 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
28. M K MOIN SAB
S/O MAULA SAB
AGED ABOUT 61 YEARS
7
R/A DEVANG MUTT
GANGAVATHI-583268
29. MARDAN SAB
S/O MATHUM SAB
SINCE DECEASED BY LR
ABDUL B,
AGED MAJOR
R/A DEVANG MUTT
GANGAVATHI-583268
30. VENAKTESH
S/O HANUMANTHAPPA
AGED ABOUT 48 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
31. RAMAPPA
S/O SHIVARUDRAPPA
AGED ABOUT 54 YEARS
R/A MARALI
GANGAVATHI-583268
32. D SHARANAPPA
S/O JADEPPA
AGED ABOUT 57 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
33. P DODDAPPA
S/O GURULINGAPPA
AGED ABOUT 65 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
34. PAMPAPATHI
S/O MAREPPA
AGED ABOUT 46 YEARS
8
R/A 46, MARALI
GANGAVATI-583268
35. Y DHANRAJ
S/OL NAGESHWAR RAO
AGED ABOUT 60 YEARS
R/A SRIRAMNAGAR
GANGAVATHI-583268
36. DURGAPPA
S/O THIMANNA
AGED ABOUT 61 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
37. DODDABASAPPA
S/O BASAPPA
SINCE DECEASED BY HIS LR
LAKSHI
MAJOR
SIDDAPUR
GANGAVATHI-583268
38. A R PARTHASARATHY
S/O RAMAMURTHY
AGED ABOUT 65 YEARS
R/A SRIRAMNAGAR
GANGAVATHI-583268
39. Y S MURTHY
S/O VELAYUDHAN
SINCE DECEASED BY HIS LR
LAKSHMI
AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
40. K RAJAN
S/O KUNJI RAMAN
9
SINCE DECEASED BY HIS LR
AMBEDSHWARI AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
41. K PERUMAL
SINCE DECEASED BY HIS LR
K LAKSHMI
AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
42. SIDDARAMAPPA
S/O BHEEMAPPA
SINCE DECEASED BY HIS LRJANAMME
AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
43. USMAN SAB
S/O HUSSAIN SAB
AGED ABOUT 60 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
44. SHANMUKAIAH
S/O CHENNABASAVAIAH
AGED ABOUT 53 YEARS
R/A MARALI
GANGAVATHI-583268
45. MALLESH GOWDA
S/O CHANNA GOWDA
SINCE DECEASED BY LR
HAMPAMMA
AGED MAJOR
R/A DHANAPUR
10
GANGAVATHI-583268
46. AYYANA GOWDA
S/O KANTHE GOWDA
SINCE DECEASED BY HISLR
GANGAMMA
AGED MAJOR
R/A MARALI
GANGAVATHI-583268
47. HUSSAINI
S/O HANUMANTHAPPA
AGED ABOUT 56 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
48. C N NAGESHWAR RAO
S/O SURYANARAYAN RAO
AGED ABOUT 59 YEARS
R/A AYODHYA
GANGAVATHI-583268
49. HANUMESH
S/O GUNDAPPA SHETTY
SINCE DECEASED BY HIS LR
PADMAVATHI, AGED MAJOR
R/A MEHBOOBNAGAR
GANGAVATHI-583268
50. SHARNAYYA HIREMATH
S/O SOMAYYA SWAMY
SINCE DEAD BY HIS LR
SHARADHA
AGED MAJOR
R/A ACHAR NARASAPUR
GANGAVATHI-583268
51. R MANOHAR REDDY
S/O R RAMA REDDY
SINCE DECEASED BY HIS LR
11
GEETHA D/O MANIHAR REDDY
AGED MAJOR
R/A SRIRAMNAGAR
GANGAVATHI-583268
52. S A GHANI
S/O S A WAHAB
AGED ABOUT 64 YEARS
R/A SORRYANAGAR
ANEKAL ROAD
CHANDAPUR PST
BANGALORE-560099
53. C S HIREMATH
S/O SIDDARAMASWAMY SINCE DECEASED BY HIS
LR
KARI SIDDAYYA SWAMY
S/O C S HIREMATH
AGED ABOUT 38 YEARS
R/A SIDDAPUR
GANGAVATHI-583268
54. T PRAHLAD
S/O T GOVINDAYYE SETTY
AGED ABOUT 62 YEARS
R/A PRAGATI NAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
55. I DURGA RAO
S/O INDRA RAJ
AGED ABOUT 60 YEARS
R/A PRAGATHINAGAR
GANGAVATHI-583268
KOPPAL DISTRICT
56. U VENKAT RAO
S/O SUBBA RAO
SINCE DEAD REPRESENTED BY HIS LR MR
SRILATHA
R/A SHANTHINAGAR
12
GANGAVATHI
KOPPAL
57. RAJA SAAB
S/O AHMED SAAB
AGED ABOUT 50 YEARS
R/A PRAGATHINAGAR
GANGAVATHI TALUK
KOPPAL DISTRICT
58. G A HIREMATH
S/O AMARAYYA HIREMATH
AGED ABOUT 58 YEARS
R/A DHANAPUR
GANGAVATHI-583268
59. PULLA SINGH
S/O BASAPPA
AGED ABOUT 55 YEARS
R/A DHANAPUR
GANGAVATHI-583268
60. GATTEPPA
S/O BASANNA
AGED ABOUT 58 YEARS
DHANAPUR
GANGAVATHI
KOPPAL-583268
61. UMESH P HIREMATH
S/O PANCHAKRISHNAIAH
SINCE DECASED REPRESENTED BY HIS LR
SHOBHA
R/A MALLIKERE STREET
GANGAVATHI, KOPPAL
62. D HANUMATHAPPA
S/O GUDDANNA
AGED ABOUT 61 YEARS
R/A 5TH WARD, SHANTHINAGAR
MARALI, GANGAVATHI
13
KOPPAL-583268
63. DEVENDRAPPA
S/O HULUGAPPA
AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI
64. A NAGAPPA
S/O VIREPAKSHAPPA
AGED ABOUT 62 YEARS
R/A HOSKERE
GANGAVATHI TALUK
KOPPAL DISTRICT-583268
65. S SELVARAJ
S/O SANTHIAGU
AGED ABOUT 58 YEARS
R/A PRAGATHINAGAR
GANGAVATHI TALUK
KOPPAL
66. R GOVINDAPPA
S/O HANUMANTHAIAH
AGED ABOUT 55 YEARS
R/O MARALI
GANGAVATHI
67.S HANMATHA
S/O HANUMAPPA
SINCE DEAD REPRESENTED BY LAKSHMAVVA
R/A PRAGATHINAGAR
GANGAVATHI TALUK
68. CHANDRASHEKHAR GOWDA
S/O NAGAPPA
AGED ABOUT 53 YEARS
R/A HOSKERE
GANGAVATHI TALUK
KOPPAL DISTRICT-583268
14
69. A BALACHANDRA RAO
S/O VENKAIAH RAO
AGED ABOUT 65 YEARS
R/A HOUSE NO.4-6-16
UPPAR STREET
GANGAVATHI TALUK
KOPPAL DISTRICT-583227
70. T PRABHAKAR
S/O T GOVINDAIAH SHETTY
AGED ABOUT 60 YEARS
R/A 46D, 88, 10TH CROSS
KUMARASWAMY LAYOUT
II STAGE
BANGALORE-560078
71. LATE MUDUKAPPA
SINCE DEAD REPRESENTED BY HIS LR
MUTHAMMA
R/A PRAGATHINAGAR
GANGAVATHI
72. KALAPPA BADIGER
S/O PAMPAPATHI
AGED ABOUT 55 YEARS
R/A HOSKERE
GANGAVATHI
KOPPAL-583268
73. V S MAGADAL
S/O SHIVALINGAPPA
AGED ABOUT 65 YEARS
R/A 1/3/198
SHIVASANGAMA NILAYA
IST MAIN, IST CROSS
JAYANAGAR
GANGAVATHI
74. AHMED SAB
S/O MEHBOOB SAB
SINCE DEAD REPRESENTED BY HIS LR DILKUSH
15
W/O AHMED SAB
R/A 177, SHANTHINAGAR POST
PRAGATHINAGAR
GANGAVATHI TALUK
75. AMINA REDDY
S/O DEVENDRAPPA
SINCE DEAD REPRESENTED BY HIS LR LAKSHI BAI
W/O AMINA REDDY
SHANTHINAGAR
PRAGATHINAGAR
GANGAVATHI
KOPPAL
76. HANUMANTHAPPA KADLI
S/O SIDDAPPA
SINCE DEAD REPRESENTED BY HIS LR NINGAMMA
W/O LATE HANUMATHAPPA
PRAGATHINAGAR
GANGAVATHI
KOPPAL-583268
77. B MARIYAPPA
S/O BASAPPA JAYNAPUR
SINCE DEAD REPRESENTED BY HIS LR HALLEVVA
W/O MARIYAPPA
R/A JAYNAPUR
JEWARI DISTRICT
GULBARGA-585313
78. MAHABALESHWAR DESAI
S/O VIRUPAKSHAPPA
AGED ABOUT 53 YEARS
R/A AREHALLI
GANGAVATHI
KOPPAL-523235
79. VENKATA REDDY
S/O RAMAIAH REDDY
AGED ABOUT 62 YEARS
16
WARD NO.1, SRIRAMNAGAR
GANGAVATHI
KOPPAL-583282
80. RAMAIAH
S/O RANGAIAH
AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI
KOPPAL-583268
81. I DHARMARAJ
S/O INDRA RAJ
AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI
KOPPAL
82. ABDUL KADAR
S/O M A REHMAN
AGED MAJOR
R/A HOUSE NO.7/84/12
KHAASIM MANZIL
OPP FARHAN SCHOOL
DURGA ROAD
GULBARGA-585104
83.T RAJAGOPAL
S/O NARAYANAPPA
AGED MAJOR
R/A PRAGATHINAGAR
GANGAVATHI
KOPPAL DISTRICT
84. M BASAPPA
S/O GYANAPPA
AGED ABOUT 52 YEARS
R/A PRAGATHINAGAR
GANGAVATHI
KOPPAL DISTRICT
17
85. MAHADEVAPPA
S/O DEEPULU RATHOD
AGED ABOUT 55 YEARS
R/A DHANAPUR
GSL PRAGATHINAGAR
GANGAVATHI
KOPPAL-583227
86. K HANUMANTHA REDDY
S/O K RAMA REDDY
AGED ABOUT 55 YEARS
R/A SRIRAMNAGAR
GNGAVATHI
KOPPAL
87. M SRINIVAS RAO
S/O JEEVAN RAO
AGED ABOUT 68 YEARS
R/A GOREBAL POST
SINDHANUR TALUK
RAICHUR DISTRICT-584128
88. VEERESH
S/O SHIVASHANKARAPPA
AGED MAJOR
R/A DHANAPUR
PRAGATHINAGAR
GANGAVATHI
KOPPAL-583268
89. H MARIYAPPA
S/O HANUMANTHAPPA
AGED ABOUT 52 YEARS
R/A GSL
PRAGATHINAGAR
GANGAVATHI
KOPPAL-583268
90. AIYYAPPA
S/O BASAPPA KALGI
18
AGED ABOUT 60 YEARS
R/A SHANTHINAGAR
PRAGATHINAGAR
GANGAVATHI
KOPPAL-583268
91. SHIVARAJ
S/O GUDDANNA
AGED ABOUT 46 YEARS
R/A PRAGATHUINAGAR
GANGAVATHI
KOPPAL-583268
92. RUDRAPPA
S/O GIDDAPPA
AGED ABOUT 62 YEARS
R/A D HIREHALLI
BELLARY-515872
93. N BASAVARAJ
S/O BOLANNA
AGED ABOUT 66 YEARS
R/A ACHAR NARASAPUR
MARALI, GANGAVATHI
KOPPAL-583268
94. M MALLESHAPPA
S/O VIRUPAKSHAPPA
AGED ABOUT 59 YEARS
RESIDING NEAR GOVERNMENT HOSPITAL
INDIRANAGAR
KARATAGI
GANGAVATHI-583229
95. GURURAJ RAO
S/O DATTATREYA RAO
AGED ABOUT 62 YEARS
R/A PRAGATHINAGAR
GANGAVATHI
96. MURUGAN
19
S/O NATARAJ
AGED ABOUT 55 YEARS
R/A GSL PRAGATHINAGAR
GANGAVATHI
KOPPAL-583268
97. MALLIKARJUN
S/O BASAPPA KALGI
AGED ABOUT 61 YEARS
R/O MARALI
GANGAVATHI
KOPPAL-583268
98. RAMU
S/O KOPPAKONDRA
AGED ABOUT 56 YEARS
R/A SHANTHINAGAR
GANGAVATHI
KOPPAL-583268 ... APPLICANTS
(BY SRI RAGHUNANDAN G., ADV.)
AND
1. M/S. GANGAVATHI SUGARS MILLS LTD.
GANGAVATHI TALUK,
KOPPAL DISTRICT.
2. THE OFFICIAL LIQUIDATOR FOR
M/S. GANGAVATHI SUGARS MILLS,
CORPORATE BHAVAN,
M.G. ROAD, NO.26 AND 27
RAHEJA TOWERS, 12TH FLOOR,
BENGALURU.
... RESPONDENTS
(BY SMT. ANUPAMA HEBBAR, ADV.)
THIS COMPANY APPLICATION IS FILED UNDER
SECTION 151 OF CPC, R/W RULES 6 AND 9 F THE
COMPANIES RULES, PRAYING TO DIRECT THE OFFICE
OF THE OFFICIAL LIQUIDATOR TO SETTLE THE CLAIMS
20
OF THE APPLICANT [EMPLOYEES OF THE RESPONDENT
COMPANY] FORTHWITH TO SERVE THE INTEREST OF
JUSTICE AND EQUITY, AND ETC.,
THESE COMPANY APPLICATIONS COMING ON FOR
ORDERS THIS DAY, THE COURT MADE THE FOLLOWING
ORDER
Heard learned counsel for Official Liquidator and learned counsel for applicants in C.A. No.285/2018 and 549/2016.
2. COP No.66/1997 is preferred for winding up of M/s. Gangavathi Sugar Mills Ltd. The Official Liquidator has filed OLR 168/2017 furnishing the details of dividend calculated pursuant to the application by three of the secured creditors. In C.A. No.365/2017, this Court was pleased to pass orders dated 07.03.2018 directing that the actual dividend as calculated by the official liquidator has to be disbursed to the secured creditors/applicants, M/s. Corporation Bank and 387 workmen. Now the report produced by the official liquidator at coloum D of annexure-G details the admitted amount. 21
3. Learned counsels do not dispute the admitted amount calculated by the official liquidator. That being the case, the applications are allowed and the amount as admitted at SI No.34 coloum 'D' of Annexure-G is to be disbursed to the applicants in C.A.No.285/2018, the same exercise shall be carried out by the official liquidator in respect of dividend payable to the workmen after issuing publication.
The disbursement shall be in terms of Rule 76 of the Company Court Rules by effecting publication in 'Vijaya Karnataka' Kannada daily newspaper and 'The Hindu' English daily newspaper.
In terms of the above, the application stands disposed of.
Sd/-
JUDGE PN/-