Madras High Court
State Bank Of India vs M/S.M.P.Shantex Private Limited on 22 August, 2017
Equivalent citations: AIR 2018 MADRAS 63
Bench: S. Manikumar, V. Bhavani Subbaroyan
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 22/8/2017
C O R A M
The Honourable Mr.JUSTICE S. MANIKUMAR
and
The Honourable Ms.JUSTICE V. BHAVANI SUBBAROYAN
Writ Petition No.27073 of 2017
State Bank of India
Stressed Asset Management Branch
rep. by Mr.Prabhu Assistant General Manager
No.1112 Raja Plaza
Avinashi Road
Coimbatore 641 037. ... Petitioner
Vs
1. M/s.M.P.Shantex Private Limited
SJ.145/1A/A Parappalayam Road
Mannarai Post
Tirupur 641 607.
2. Mr.P.Umashankar
Managing Director
M/s. M P Shan Tex Private Limited
Old No.33 New No.10 Kongu Nagar Extension
First Street
Tirupur 641 607. ... Respondents
Writ Petition filed under Article 226 of Constitution of India, to issue a Writ of mandamus to direct the DRT, Coimbatore to dispose of I.A.No.1764 of 2015 in O.A.No.368 of 2014 within a time frame fixed by this Court.
For Petitioner ... Mr.G.Senthilkumar
For respondents ... Mr.R.G.Senthilkumar
- - - - - -
O R D E R
(Order of the Court was made by S.Manikumar,J) Material on record, discloses that on 16/7/2008, the respondent has availed credit facility from State Bank of India, Coimbatore. Arrears in December 2013 was stated to be 300 crores. Bank has issued Demand Notice, under Section 13 (2) of the SARFAESI Act and also possession notice, under Section 13 (4) of the Act. Thereafter, Bank has filed O.A.No.368 of 2014, on the file of the Debts Recovery Tribunal, Coimbatore, for the following prayers.
(a). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.116,08,69,104.00 together with interest thereon at the rate of 14.00% p.a., with monthly rests under the Cash Credit Account No.30440299561 from the date of this Application till the date of payment in full, on or before a date to be specified and to draw a Recovery Certificate for the same.
(b). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.2,56,07,699.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the term Loan -I Account No.30449341798 from the date of this Application till the date of payment in full, on or before a date of this Application till the date of payment in full, on or before a date to be specified and to draw a Recovery Certificate for the same.
(c). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.1,07,60,640.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the Term Loan - II Account No.30449398235 from the date of this Application till the date of payment in full, on or before a date to be specified and to draw a Recovery Certificate for the same.
(d). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.17,70,75,840.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the Term Loan - III Account No.31145219993 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(e). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.5,33,68,353.00 together with interest thereon at the rate of 14.25% per annum with monthly rests under the Term Loan - IV (CL) Account No.31223720265 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(f). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.18,94,054.00 together with interest thereon at the rateof 14.25% p.a., with monthly rests under the Term Loan - V Account No.30040062386 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(g). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.3,63,16,533.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the term Loan VI Account No.32956419982 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(h). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.89,96,127.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the term loan VII Account No.32956617258 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(i). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.5,89,65,166.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the Corporate Loan Account No.31823780381 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(j). to pass an order directing the defendants jointly and severally to pay to the second applicant Bank a sum of Rs.18,32,46,104.10 together with interest thereon at the rate of 14.00% p.a., with monthly rests under the cash credit Account No.CC/01/120002 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(k). to pass an order directing the defendants jointly and severally to pay to the second applicant Bank a sum of Rs.16,95,45,253.66 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the term loan Account No.TLS/01/120006 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(l). to pass an order directing the defendants jointly and severally to pay to the second applicant bank a sum of Rs.72,05,962.42 together with interest thereon at the rate of 11.25% p.a., with monthly rests under the vehicle term loan account No.CVEH1/01/120005 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(m). on failure to pay as aforesaid amounts, to order sale of movable properties and immovable properties mentioned in the schedule A & B belonging to the first defendant Company hereunder and to pay the sale proceeds to the applicant Bank for proportionate distribution amongst them with reference to the outstanding on paripassu basis and to draw a certificate.
(n). On failure to pay as aforesaid amounts, to order sale of the hypothecated vehicles in the schedule C belonging to the first defendant Company hereunder and to adjust the same towards their outstanding of the second applicant bank and to permit the first applicant Bank to proceed against the defendants, for deficiency, if any.
(o). On failure to pay as aforesaid amounts, to order sale of the hypothecated vehicles in the schedule C belonging to the first defendant Company hereunder and to adjust the same towards their outstanding of the second applicant Bank and to pay the sale proceeds to the second applicant Bank and to draw a certificate,
(p). to issue a recovery certificate against all the defendants for the amount ordered and to be paid with pendent lite and further interest with monthly rests together with further expenses and costs thereon.
(q). to order execution of the said certificate under Section 25 of the Recovery of Debts Due to the Bank and Financial Institution Act, 1993.
(r). to issue directions for inquiry, investigations, examination attachment and realisation of the assets and properties of the defendants.
(s). To order the defendants 2 and 5 to declare on affidavit the other particulars of her/his immovable/movables properties and file the same before the Hon'ble Tribunal.
(t). To order costs jointly and severally to be paid to be applicant Banks by the defendants.
(u). to grant to the applicant Banks such further reliefs which this Hon'ble Tribunal may deem fit and proper in the interest of justice of this case and in the interest of the applicant.
2. Pending disposal of the said O.A., Bank has filed I.A.No.1764 of 2015 in O.A.No.368 of 2014, to impound Passport No.GO465727 issued by the Regional Passport Office, Chennai to Mr.P.Umashankar, Managing Director of the first respondent Company and second respondent.
3. Material on record discloses that I.A.No.1764 of 2015 has been taken up for hearing and the record of proceeding of the Tribunal are as hereunder:-
O.A.368 of 2014 9/2/2016 Learned Counsel Mr.Rajkumar is appearing for A/B. Ld Counsel Ms.Jayaprabha for defendant.
I.A.No.2007/15, Commission Petition pending. I.A.1764/15 petition for impounding passport. I.A.208/15 ABJ petition pending. Counter in IAs and W/S by 2/3/16, last chance. Call on 2.3.2016.
2/3/2016 Ld Counsel Mr.Prabhu Shankar is appearing for A/B. Ld counsel Mr.Sivashanmugam for defendant.
I.A.2007/15 Commission petition pending, IA 1764/15 petition for impounding passport. IA 2008/15, IA 1764/15 and W/S of D1, D2. Counter in IA 2007/15 & IA 2008/15 by 17/3/2016. A/B is directed to furnish copy of the petition to the defendant within a week. Call on 17/3/2016.
17/3/2016 No sitting reposted to 31/3/2016.
31/3/2016 Due to administrative reasons, the case is reposted to 13/4/2016 29/4/2016 Ld Counsel Mr.Prabushankar is appearing for A/B. I.A.669/16, Emergent petition dismissed as not pressed.
I.A.818/16, Emergent petition. In view of the affidavit averments, this petition is allowed and the matter has been taken up today, for hearing emergently. No costs.
IA 819 of 2016, Advance hearing petition. In view of the affidavit averments, this petition is allowed and the hearing of the matter has been advanced from 14/6/2016 to 29/4/2016. No costs.
I.A.670/16 Petition to record part satisfaction. The authorised officer in his P/A has stated that pending proceedings, the A/B has taken SARFAESI proceedings and mortgaged property which is more fully described in schedule 'B' property No.3 in the main application has been sold in public auction on 7/3/2016 to one, Mr.B.Gopal of Tirupur and sale proceeds have been appropriated towards the loan account after deducting Rs.1 lakh towards TDS. Hence, in view of the affidavit averments, this petition is allowed. Part satisfaction of Rs.1 crore is recorded. In view of the part satisfaction being recorded, the Registry is directed to return the documents pertaining to the property disposed of in public auction to the authorised officer of the A/B on proper identification and acknowledgment. No costs. IA 670/16 is disposed of accordingly. Call other connected IAs by 4/5/16.
IA.820/16, Direction petition. Notice to the respondent by 4/5/2016. Registry is directed to send notice to the respondent by RPAD by then. Private notice is also permitted. Call on 4/5/16.
4. Contending inter lia that I.A.No.1764 of 2015 has not been disposed of, State Bank of India, Coimbatore has filed the instant writ petition, for a mandamus directing the Debts Recovery Tribunal, Coimbatore, to dispose of I.A.No.1764 of 2015 in O.A.No.368 of 2014, within a time frame, fixed by this Court.
5. Though in support of the prayer sought for, Mr.G.Senthil Kumar, learned counsel for the petitioner made submissions and also invited Section 19 (24) of RDDB Act and FI Act, and further contended that even the original Application instituted by the Bank, should be disposed of, as expeditiously as possible and within 120 days from the date of receipt of application, and whereas in the case on hand, I.A.No.1764 of 2015, has not been disposed of even after expiry of 180 days, from the date of filing and therefore, prayed for the relief sought for, this Court is not inclined to issue any mandamus, for the reason that, Tribunals are flooded with innumerable applications filed by the Banks or Financial Institutions for recovery of Debts due and payable, and simultaneously, there are also applications filed by the borrowers/guarantors, or any person aggrieved by any of the measures taken under Section 13 (4) of the SARFAESI Act, 2002. Pending disposal of O.As, several I.As are also taken. We only state that the Tribunals have to consider the nature of the relief sought for in the interim applications and wherever, there is urgency, the same have to be given priority. Having regard to the above, we direct the Tribunal to consider the grievance expressed by the writ petitioner, to take appropriate decision.
6. With the above directions, this writ petition is disposed of. No costs.
(S.M.K.,J) (V.B.S.,J)
22nd August 2017
mvs.
Index: No
Internet: yes
S.MANIKUMAR,J
A N D
V.S.BHAVANI SUBBAROYAN,J
mvs.
W.P.No.27073 of 2016
22/8/2017