Karnataka High Court
Official Liquidator Of M/S Dharma Sugar ... vs The Manager on 4 April, 2024
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
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NC: 2024:KHC:13902
CA No. 30 of 2022
In COP No.52 of 1985
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 4TH DAY OF APRIL, 2024
BEFORE
THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ
COMPANY APPLICATION NO. 30 OF 2022
IN
COMPANY PETITION NO. 52 OF 1985
BETWEEN:
OFFICIAL LIQUIDATOR OF
M/S DHARMA SUGAR INDUSTRIES (P) LTD
(IN LIQN)
ATTACHED TO HIGH COURT OF KARNATAKA
CORPORATE BHAVAN NO.26-27
12TH FLOOR, RAHEJA TOWERS
M G ROAD
BENGALURU-560001
...APPLICANT
(BY SRI. JAGADEESH GOUD PATIL.,ADVOCATE FOR O.L.)
AND:
Digitally signed
by THE MANAGER
NARAYANAPPA STATE BANK OF INDIA
LAKSHMAMMA HANGAL BRANCH
Location: HIGH DISTRICT HAVERI PIN CODE-581104
COURT OF
KARNATAKA
...RESPONDENT
(BY SRI. DEEPAK.,ADVOCATE)
THIS COMPANY APPLICATION IS FILED UNDER RULE 6 & 9 OF
THE COMPANIES (COURT) RULES 1959 PRAYING TO DIRECT THE
STATE BANK OF INDIA, THE SECURED CREDITOR OF THE COMPANY
TO TAKE URGENT STEPS TO SELL THE PROPERTY VIZ., LAND
MEASURING 5 ACRES AND 8 GUNTAS SITUATED NEAR
GIRISINKOPPA TRAVELLERS BUNGLOW, HAVERI-HANGAL ROAD,
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NC: 2024:KHC:13902
CA No. 30 of 2022
In COP No.52 of 1985
GIRISINKOPPA TQ. HANGAL, DIST. HAVERI, AS PER THE ORDERS
DATED 12.08.1988 IN CO.A.261/1987 (ANNEXURE-B) AND REPORT
AND ETC.
THIS COMPANY APPLICATION, COMING ON FOR ORDERS, THIS
DAY, THE COURT MADE THE FOLLOWING:
ORDER
1. CA No.30/2022 has been filed seeking for the following reliefs;
a) To direct the State Bank of India, the secured creditor of the company to take urgent steps to sell the property viz., land measuring 5 acres and 8 guntas situated Near Girisinkoppa Travellers Bunglow, Haveri-Hangal Road, Girisinkoppa, Tq. Hangal, Dist. Haveri, as per the orders dated 12.08.1988 in Co.A 261/19987 (Annexure-B) and report.
b) To pass such other order or orders as may be deemed fit and proper in the Circumstances of the case.
2. The contention of the official liquidator is that Company (in liquidation) - M/s Dharma Sugar Industries Private Limited was ordered to be wound up vide order dated 20.6.1986 in COP No.52/1985 is ceased of certain immovable properties which had apparently been mortgaged in -3- NC: 2024:KHC:13902 CA No. 30 of 2022 In COP No.52 of 1985 favour of respondent-State Bank of India, Hangal Brach, Haveri District.
3. Despite official liquidator having written several letters from the year 2001 onwards over a period of two decades the respondent-Bank did not take any action to sell the property, recover the monies and make payment of dues to the workers and any other persons who is having pari passu charge. Meetings held with the officials of the Bank also not having evoked any results the aforesaid prayers have been sought for in the present application.
4. This Court had directed an inspection of the property and the status report to be filed, which came to so filed by 20.2.2024. This time stating that on inspection of the property it is found that there is certain encroachment, it is for State Bank of India who are in custody of the property to remove the encroachment.
5. In that background, when the matter was taken up for hearing that this Court cause an enquiry on -4- NC: 2024:KHC:13902 CA No. 30 of 2022 In COP No.52 of 1985 Sri.Deepak., learned counsel appearing for the State Bank of India, as to why the Bank has not brought the property to sale, when it came to light that the original documents were not available. Hence, he has called to verify again and make his submission. Today, a memo along with a letter dated 3.4.2024 addressed by the Branch Manager, Hangal, has been placed on record.
6. A perusal of the said letter would indicate that there are no original documents available with the Bank and perusal of all the records available with the Bank do not disclose deposit of the original title documents nor were the original title documents produced in any of the proceedings filed by the Bank.
7. A perusal of the said letter would indicate the reason why the State Bank of India has been on the side line and not taken any steps, it was for the State Bank India, to have initially itself responded to the official liquidator categorially indicating that the original documents were not available, in such circumstances -5- NC: 2024:KHC:13902 CA No. 30 of 2022 In COP No.52 of 1985 the official liquidator could have himself gone ahead with the sale of the property or request for the State Bank of India to do so which was the request made by the official liquidator on several occasions. Even in the present application the prayer sought for is a direction to the State Bank of India, to sell the properties.
8. Sri.Deepak., learned counsel submitted that the State Bank of India by itself cannot carry out any sale but would however hasten to submit that the State Bank of India would not have any objection to associate with the official liquidator for bringing about sale of the property.
9. Learned counsel for the official liquidator submits that only photocopies of the documents have been furnished though there are no original documents i.e., certified copies would have to be furnished by the Sate Bank of India.
10. Having perused the memo filed by Sri.Deepak., on behalf of the State Bank of India on 31.1.2022 it is -6- NC: 2024:KHC:13902 CA No. 30 of 2022 In COP No.52 of 1985 seen that its only photocopies which have been filed. However, details of the documents were available, in that view of the matter when State Bank of India has no objection to associate with the official liquidator for sale of property, the State Bank of India is directed to furnish the certified copies of the documents within 45 days of the receipt of copy of this order. In the event of the State Bank of India not furnishing certified copies the official liquidator is also permitted to engage services of advocate or the like to obtain certified copies of the documents, the cost thereof will be borne from and out of the estate fund to be adjusted after the sale. Hence, I pass the following;
ORDER i. CA No.30/2022 is partly allowed. ii. The reliefs sought for are molded and modulated.
the State Bank of India is directed to associate with the official liquidator to sell the property of the company (in liquidation) viz., land measuring 5 acers 8 guntas situated near Girishkoppa -7- NC: 2024:KHC:13902 CA No. 30 of 2022 In COP No.52 of 1985 Travellers' Bunglow, Haveri-Hangal Road, Girisinkoppa, Hangal Taluk, Haveri District. iii. The State Bank of India is directed to handover the certified copies of all the documents pertaining to the property within 45 days of receipt of copy of this order, failing which the official liquidator is permitted to secure certified copies at his cost State fund.
iv. On securing the said certified copies the official liquidator would have to make the necessary application for appointment of the valuer to value the property and inspection, as and when such application is filed necessary order would be passed.
v. The Zonal manager of State Bank of India is directed to cause an enquiry as to why the officers did not disclose the non-availability of the Original documents causing delay in the sale of the properties, thus resulting in encroachment.
Sd/-
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