Karnataka High Court
State Bank Of India vs M/S Precision Tooling System Ltd on 20 October, 2011
Author: Aravind Kumar
Bench: Aravind Kumar
ATE LAURE SARNAIAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH ¢ IN THE HIGH COURT OF KARNATAKA AT BANGALORE. . DATED THIS THE 207 DAY OF OCTOBER 201100 BEFORE THE HON'BLE MR.JUSTICE ARAVIND KUMAR COMPANY APPLICATION No. 96/2011 os, C.P.NO. 16/2001 ms STATE BANK OF INDIA A BODY CORPORATE CONSTITUTED UNLER THE STATE BANK OF INDIA ACT, 1955. | HAVING ITS CENTRAL OFFICE AT MUMBA) AND LOCAL HEAD OFFICE AT NO.65, 87. MARKS ROAD, BANGALORE - 560 OGL AND © BRACH AMONG OTHERS AT. STRESSED ASSETS MANAGEMENT BRACH _ REPRESENTED BY ITS | | ASSISTANT GENERAL MANAGER ~ NO.3, 28D FLOOR, ENKAY COMPLEX KESHWAPUR CIRCLE, HUBLI ~-- 580 023. BY sips ADVOCATE) A - a5. PRECISION TOOLING SYSTEM L TD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT PO YANTRAPUR HARIHAR ~ 577 602 REPRESENTED BY ITS DIRECTOR. + APPLICANT IGH COURT OF KARNATAKAHIGH COUST OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH CO! 2. THE OFFICIAL LIQUIDATOR OF THE MYSORE KIRLOSKAR LTD., (IN LION.) . ATTACHED TO HIGH COURT OF KARNATAKA 1274 FLOOR, RAHEJA TOWERS 7 BANGALORE - 560 001. a a (BY SRIYUTHS K.S.MAHADEVAN AND V.JAYARAM, ADVOCATES) eer THIS CA IS FILED UNDER RULIS 6 & 7 OF THE COMPANIES (COURT)) ACT, 1956 PRAYING TO DIRECT THE RESPONDENTS TO HAND GVER THE ?LANT AND MACHINERY AND MOVABLES 'MENTIONED IN THE SCHEDULE HEREVINDER TO THE APPLICANT OR ANY PERSON CLATEANG UBDER THEM ARD ETC, THIS 'COMPANY APPLICATION COMING ON FOR ORDERS THIS DAY, (, THE COURT MADE THE FOLLOWING: ORDER
Heard foarned counsel for the applicant and 7 'respondents, Perused the application and annexures Bled tl therein. --
2. Applicant is State Bank of India and first oe, 'reapoident is M/s. Precision Tooling Syetems Ltd., was a subsidiary of M/s. Mysore Kirloskar Limited, Harihar. i First respondent hed approached the applicant Bank and availed credit facilities and had created firat charge a QOURT C"
SHC KARNATAKA HIGH CQURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH ¢ of the properties described in the schedule ta the apphcation. On account of non-payment of dues , end the lan accounts became non: performing asset and --_ applicant Bank initiated recovery proceedings against | first respondent by filing an application before DRT in
0.A.No.331/ 2005, which was allowed on 12.9,2007 ard recovery certificate came to > be issued for x63, 61,586/-.
3. Piet 'reapondent, "ae ~ nypothecated machines shown, in the schedule to the present applicant by cresting first charge over the property in favour of the applicant: Bank, The said machines are _ peated 5 in the premises where M/s.Mysore Kirloskar wy Limited w Wag, located. The eaid company namely M/s. Mysore Kirleokar Limited wae ordered to be wound up | by this Court on 1.4.2004 m COP WNo.166/2001 and _ - other connected matters. The Official Liquidator os - atiached to this Court has been appointed as Official | Liquidator of the said company and he is incharge of assets and liabilities of M/s. Mysore Kirloskar Limited. Since the machines belonging to the first reapondent are be IGH COURT OF KARNATAKAHIGH COLRT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COL located in the premises of the company M/s.Myacre Kirloskar Limited which has been wound up wad same :
being in the possession of the 'Official Liquidator, a present application has been filed cocking for a direction | to the respondents to hand over plant and machinery and movables belonging to the. first renporstent over which the applicant has a firet 3 hares.
4. The applicant has , aleo addressed letter to the firet respondent or: 18.2.2005 namely to the Official Liquidator, which. is at Annexure-E to the present application. It is "etated therein that machines | belonging. to M/e. Mysore Kirlosker limited was sold by | io the Oficial Liquidator and machinaries belonging to the firat respondent is atill lying in the premises of the Compeny (in liquidation} and game was not scold and as _-- "buch the applicant Bank in order to realise its dues has
- requested the Official Liquidator to hand over the. machineries. In view of the fact that Official Liquidator has not acceded to the request of the applicant Bank, _|--------
UTP CMURE & KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH € the present application is filed seeking for a direction as | referred to Supra. ns
5. First respondent has. filed & memo on. ; 17.10.2011 which reads as under:- - oe The First Respondent: in the above case begs to state that in view of the financial difficulties faced by them, they are pursuing a One time seiilemerd with the Applicant. It is submitted that in. view of the said Settlement and part of the. 'Settlement, the First Responde-tt dees nat have any objection for the Applicant to take over the movable assets hypothecated to them as stated in the Application. a a ft is submitted that the above Memo | a be taken on record and suitable orders : ~ may Be psn nthe mater n the interest of | : 6: Learned counsel appearing for the Official | Me Liquidator Sri.K.S.Mahadevan, submits that he has no _. objection to hand over plant and machineries belonging to first respondent Company lying in the premises of aA IGH COURT OF KARNATAKAHIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH CO M/s. Mysore Kirloskar Limited, which is available in the said premises, to the applicant Bank. Howsver, ie submits that sate can be handed over in the presence ms - of the directors of the firet respondent company to avoid | any further claims being raised "by the firat respondent Company or its Directors. Said submission denerves to be accepted and cccordingiy, > accepting the same, following order 3 S passa. | 7 Fag ¢ _
1. CA 0 B)2011 i herby allowed.
2. | Dizection i 1 5 issued to the respondents | to 'band over "plant and machineries , and movables belonging to the first _ "respondent, said to be available in the premises of M/s.Mysore Kirloskar " 'Limited, Harihar to the custody of the applicant Bank or its authorised representatives.
3. Official Liquidator shall draw a mahazar at the time of handing over/ # oavecho§ U He Cou xt Oadex Ab ID. OV QO a Ps +9 Howble AKT taking over of plant and machineries to the applicant Bank.
The applicant Bank shall issve notice ON tp all the directors of first respondent SS Company specifying the date te. enable them to appear cu the ) aid date of handing over/ taking over, FoF 'the plant and muachinerics: as" - ordered herein above. .
Sd/-
JUDGE