Kerala High Court
India Overseas Bank vs State Of Kerala on 7 April, 2010
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
MONDAY, THE 30TH DAY OF JANUARY 2017/10TH MAGHA, 1938
WP(C).No. 41002 of 2016 (A)
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PETITIONER(S):
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INDIA OVERSEAS BANK,
ARMB BRANCH, ERNAKULAM,
REPRESENTED BY ITS MANAGER JYOTHI K.P.,
W/O.VIJAYANAND, AGED 36 YEARS.
BY ADV. SRI.LEO GEORGE
RESPONDENT(S):
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1. STATE OF KERALA,
REP. BY THE CHIEF SECRETARY TO GOVERNMENT,
GOVERNMENT SECRETARIAT, THIRUVANANTHAPRUAM -695 001.
2. THE PRINCIPAL SECRETARY,
INDUSTRIES AND COMMERCE, BPE DEPARTMENT,
GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001.
3. THE PRINCIPAL SECRETARY,
DEPARTMENT OF FINANCE, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM -695 001.
4. THE DISTRICT COLLECTOR, ALAPPUZHA-688 001.
5. THE COMMISSIONER OF PAYMENTS,
APPOINTED UNDER THE KERALA SPINNERS
ALAPPUZHA (ACQUISITION OF TRANSFER OF UNDERTAKING)
ACT 2010, REP. BY THE DISTRICT COLLECTOR,
ALAPPUZHA-688 001.
6. KERALA STATE TEXTILE CORPORATION,
ANNA POORNA, T.C.9/2000-2001 SASTHAMANGALAM,
THIRUVANANTHAPURAM -695 010,
REP. BY ITS CHAIRMAN/MANAGING DIRECTOR.
7. KOMALAPURAM SPINNING AND WEAVING MILLS,
AN UNDERTAKING OF KERALA STATE TEXTILE CORPORATION,
NORTH ARYAD P.O., KOMALAPURAM, ALAPPUZHA 688 542,
(FORMERLY M/S.KERALA SPINNERS LTD.)
R1-R5 BY GOVERNMENT PLEADER SRI.RON BASTIAN
R6 & R7 BY SRI.P.U.SHAILAJAN, SC
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 30-01-2017, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
msv/
WP(C).No. 41002 of 2016 (A)
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APPENDIX
PETITIONER(S)' EXHIBITS
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P1 TRUE COPY OF THE KERALA SPINNERS, ALAPPUZHA (ACQUISITION
AND TRANSFER OF UNDERTAKING) ACT 2010 AS PUBLISHED IN
KERALA GAZETTE, EXTRAORDINARY DATED 7.4.2010
P2 TRUE COPY OF THE CLAIM RAISED BY THE PETITIONER BANK BEFORE
THE COMMISSIONER OF PAYMENTS DATED 19.11.2012
P3 TRUE COPY OF THE REPRESENTATION ON BEHALF OF THE PETITIONER
BANK TO HONOURABLE MINISTER OF INDUSTRIES DATED 18.6.2013
P4 TRUE COPY OF THE REPRESENTATION SUBMITTED ON BEHALF OF THE
PETITIONER BANK TO THE FIFTH RESPONDENT DATED 18.6.2013
P5 TRUE COPY OF THE COMMUNICATION ISSUED BY THE FOURTH
RESPONDENT TO THE CHIEF MANAGER OF THE APPLICATION BANK
DATED 9.7.2013
P6 TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER
BANK TO RESPONDENTS 1 TO 3 DATED 16.12.2016
P7 TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER
BANK TO THE FIFTH RESPONDENT DATED 16.12.2016
RESPONDENT(S)' EXHIBITS
----------------------- NIL
//TRUE COPY//
P.S.TO JUDGE
msv/
SHAJI P. CHALY, J.
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W.P.(C). No. 41002 of 2016
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Dated this the 30th day of January, 2017
JUDGMENT
Petitioner is a public sector bank. Bank has advanced loan to M/s.Kerala Spinners Ltd., a private limited company on security of immovable as well as movable properties belonging to it. M/s. Kerala Spinners Ltd. defaulted the commitments towards the bank and consequentially bank has initiated action before the Debts Recovery Tribunal, Ernakulam for recovery of its dues, which is pending adjudication. In the meanwhile, State Government has taken over M/s.Kerala Spinners Ltd. by way of an enactment namely, the Kerala Spinners, Alappuzha (Acquisition and Transfer of Undertaking) Act, 2010, evident from Ext.P1. According to the petitioner, as per Section 3 of Chapter II of Ext.P1, assets which were mortgaged by the company, which is now undertaken by the State Government as per Ext.P1, is vested with the State Government and therefore, the bank has lost the charge of the amounts advanced by the bank to the W.P.(C). No.41002 of 2016 2 company in question.
2. Matters being so, petitioner bank submitted Ext.P6 before the State Government, which is pending consideration. It is also stated that Ext.P2 claim is pending consideration before the District Collector, who is the Commissioner of Payments as per Ext.P1 Act. Thereafter, petitioner has also submitted Ext.P7 before the Commissioner of Payments seeking to release the amounts due to it, which according to the petitioner, is nearly to Rs.7 Crores. Any how since the undertaking is taken over by the State Government, it is for the State Government to provide sufficient amount so as to enable the Payment Commissioner to release the amounts to the petitioner. So the basic requirement is disposal of Ext.P6 submitted by the bank before the State Government to provide sufficient funds to the Commissioner of Payments.
3. In that view of the matter, I think it is only appropriate that, Ext.P6 is directed to be disposed of within a time frame. Accordingly, there will be a direction to the 1st respondent to take on board Ext.P6 and consider the same in accordance W.P.(C). No.41002 of 2016 3 with law after providing sufficient opportunity of hearing to the petitioner as well as any other interested or affected parties and attain finality to the same within two months from the date of receipt of a copy of this judgment. Needless to say, in accordance with the developments that takes place as per the directions contained above, Ext.P2 along with Ext.P7 shall be considered by the Commissioner of Payments.
Writ petition is disposed of accordingly.
Sd/-
SHAJI P. CHALY JUDGE smv 31.1.2017