Delhi High Court - Orders
Ecologic Building Systems Private ... vs Small Industries Development Bank Of ... on 8 October, 2021
Author: Prateek Jalan
Bench: Prateek Jalan
$~47 (2021 Cause List)
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 11592/2021
ECOLOGIC BUILDING SYSTEMS
PRIVATE LIMITED ..... Petitioner
Through: Mr. Kaushik Mishra and Ms.
Pallavi Srivastava, Advocates for
Petitioner
versus
SMALL INDUSTRIES DEVELOPMENT
BANK OF INDIA & ANR. ..... Respondents
Through: Mr. M.M Abbasi, Advocate for
SIDBI
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 08.10.2021 The proceedings in the matter have been conducted through hybrid mode [physical and virtual hearing].
CM APPL.35774/2021 (exemption) Exemption allowed, subject to all just exceptions. The application stands disposed of.
W.P.(C) 11592/2021 with CM APPL.35773/2021 (for interim relief)
1. This writ petition is directed against the communications dated 12.08.2021 and 17.09.2021 issued by the respondent no.1/Small Industries and Development Bank of India ["SIDBI"] with regard to certain dues of the petitioner. It appears during the course of hearing that Signature Not Verified Digitally signed By:SHITU NAGPAL Signing Date:08.10.2021 19:47:45 W.P.(C) 11592/2021 Page 1 of 3 the proceedings with regard to the aforesaid transactions are pending before the Debts Recovery Tribunal ["DRT"]. During the pendency of those proceedings, SIDBI has issued the aforesaid communications whereby payments have been demanded and the petitioner has been informed that due to the failure of the petitioner to make a concrete repayment proposal, SIDBI is contemplating action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. I am informed that proceedings before the DRT have been adjourned to 22.10.2021.
2. Mr. Kaushik Mishra, learned counsel for the petitioner, states that the petitioner wishes to liquidate its dues in entirety, but seeks relief as far as the penal rate of interest is concerned. He draws my attention to the orders passed by the DRT against other financial institutions, which are a part of consortium of lenders to the petitioner, in this regard. Mr. Mishra states that, if SIDBI is agreeable to accepting the entire principal dues alongwith interest @ 12% per annum for the overdue period, the petitioner will be in a position to liquidate the dues within approximately four to six weeks.
3. Mr. M. M. Abbasi, learned counsel for SIDBI, submits that SIDBI would be willing to consider a settlement, if a concrete proposal is made.
4. In view of the aforesaid, the writ petition is disposed of with a direction upon the petitioner to make a concrete settlement proposal to SIDBI by 12.10.2021. Mr. Mishra and Mr. Abbasi will coordinate to ensure that the proposal is forwarded to the concerned officer of SIDBI and the representative of the petitioner may also be called for discussion in this regard. SIDBI may take an independent decision on the Signature Not Verified Digitally signed By:SHITU NAGPAL Signing Date:08.10.2021 19:47:45 W.P.(C) 11592/2021 Page 2 of 3 petitioner's settlement proposal and place the same before the DRT for consideration. Mr. Abbasi assures the Court that no coercive action will be taken by SIDBI during the period the petitioner's proposal is being considered. The parties may apply to the DRT for further orders in this regard.
5. The writ petition, alongwith pending application, is disposed of with these observations.
PRATEEK JALAN, J OCTOBER 8, 2021 'j'/ Signature Not Verified Digitally signed By:SHITU NAGPAL Signing Date:08.10.2021 19:47:45 W.P.(C) 11592/2021 Page 3 of 3