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Calcutta High Court

L & T Finance Limited vs Apl Metals Limited & Ors on 31 August, 2017

Author: I. P. Mukerji

Bench: I. P. Mukerji

OD-17.
                                  ORDER SHEET
                               GA No. 2894 of 2017
                                AP No. 441 of 2017
                        IN THE HIGH COURT AT CALCUTTA
                         Ordinary Original Civil Jurisdiction



                             L & T FINANCE LIMITED
                                      Versus
                           APL METALS LIMITED & ORS.

  BEFORE:
  The Hon'ble JUSTICE I. P. MUKERJI

  Date : 31st August, 2017.

                                                                      Appearance:
                                                     Mr. Swataroop Banerjee, Adv.
                                                          Mr. Paritosh Sinha, Adv.
                                                           Mr. Debayan Sen, Adv.

                                                      Ms. Soma Chakraborty, Adv.


              The Court : In a loan transaction between the parties there was due

and payable a sum of Rs.23,00,50,000/- by the respondent no. 1 to the

petitioner as on 14th June, 2017, when this Court passed its order in a Section 9 application (AP 441 of 2017).

Mr. Banerjee, learned Advocate for the petitioner submits that in terms of the said order the Receivers appointed by the Court were directed to make an inventory of the various properties of the respondent no.1 described in annexure-Q to the petition in the said Section 9 application.

In the course of inventory the Receivers opined that these properties were worthless, inter alia, for the reason that they were heavily charged in favour of the creditors of the respondent company.

The respondent no. 1 is expecting substantial payment from Exide Industries Ltd. The petitioner prays for a garnishee order which is opposed by the learned Advocate for the respondents. She submits that the security mentioned in the order dated 14th June, 2017 is enough to secure the claim of the petitioner.

Prima facie, the submission of Mr. Banerjee appears to be correct inasmuch as it is based on the oral report of the Joint Receivers. 2

They are directed to file a formal report by 11th September, 2017. Furthermore, Mr. Banerjee points out to this Court that, inter alia, the receivables of the respondent no.1 from third parties is assigned in favour of the petitioner.

Therefore, there is no difficulty in passing the order as prayed for. I pass an order of injunction directing Exide Industries Ltd not to make any payment to the respondent no.1 or any other respondent and furnish to this Court the exact amount of debt, that is, owing by Exide Industries Ltd to the respondents. Such intimation may be made by the garnishee, Exide Industries Ltd directly to the petitioner's advocate-on-record with a copy marked to the respondents, well in advance of the returnable date.

I make this application returnable on 30th October, 2017.

                                                           (I.    P. MUKERJI, J.)


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