Karnataka High Court
Official Liquidator Of vs Stressed Assets Stabilization Fund ... on 12 September, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2024:KHC:38835
CA No. 33 of 2024
A/W CA NOS.34/2024, 240/2024
IN COP NO.160/2005
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 12TH DAY OF SEPTEMBER, 2024
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
COMPANY APPLICATION NO. 33 OF 2024
A/W
COMPANY APPLICATION NOS. 34 OF 2024, 240 OF 2024
IN
COMPANY PETITION NO.160 OF 2005
IN CA NO.33/2024:
BETWEEN:
OFFICIAL LIQUIDATOR OF
M/S BPL ENGINEERING LIMITED, (IN LIQUIDATION)
ATTACHED TO HIGH COURT OF KARNATAKA,
CORPORATE BHAVAN,
NOS.26-27, 12TH FLOOR,
RAHEJA TOWERS, M G ROAD,
BENGALURU 560 001.
...APPLICANT
(BY SMT.KRUTHIKA RAGHAVAN., ADVOCATE FOR OL)
Digitally signed AND:
by
LEELAVATHI S 1. STRESSED ASSETS STABILIZATION FUND -SASF
R
3RD FLOOR, IDBI TOWER, WTC COMPLEX,
Location: HIGH
COURT OF CUFFE PARADE, MUMBAI - 400 005.
KARNATAKA REPRESENTED BY ITS
DY. GENERAL MANAGER
MR. RAHUL KULKARNI.
2. KOTAK MAHINDRA BANK LTD.,
ASSETS RECONSTRUCTION DIVISION,
5TH FLOOR, SAMSON TOWER, NO. 402- L,
PANTHEON ROAD,EGMORE,
CHENNAI - 600 008.
REPRESENTED BY ITS
EXECUTIVE VICE PRESIDENT
MR. PARAG DHOLAKIA.
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IN COP NO.160/2005
3. HDFC BANK LTD.,
DEPARTMENT FOR SPECIAL OPERATIONS,
2ND FLOOR, ESEL CHAMBERS, 7 & 7/1,
LALBAGH ROAD, RICHMOND CIRCLE,
BENGALURU 560 027.
REPRESENTED BY ITS SENIOR MANAGER
SRI. FRANCY RAJU.
4. ASSET RECONSTRUCTION COMPANY (INDIA) LTD.,
(ARCIIL),
THE RUBY, 10TH FLOOR, 29,
SENAPATHI BAPAT MARG, DADAR (WEST)
MUMBAI - 400 028.
REPRESENTED BY ITS CHIEF MANAGER
SRI. ASHISH SHAHI.
5. JAMMU AND KASHMIR BANK
ZONAL OFFICE (SOUTH),
UNION STREET OFF INFANTRY ROAD,
BENGALURU 560 001.
REPRESENTED BY ITS CHIEF MANAGER
MR. FARID AHMED KHAN.
6. SICOM LIMITED,
SOLITAIRE CORPORATION PARK,
BUILDING NO 4, 6TH FLOOR,
GURU HARGOVINDJI ROAD,
(ANDHERI GHATKOPAR LINK ROAD)
CHAKALA, ANDHERI (EAST),
MUMBAI, MAHARASHTRA 400 093.
REPRESENTED BY ITS ASST. MANAGER
SRI. PRAMOD CHAUHAN.
7. KSIIDC LIMITED.,
KARNATAKA STATE INDUSTRIAL AND
INFRASTRUCTURE DEVELOPMENT
CORPORATION LIMITED.,
NO 49, KHANIJA BHAVAN,
4TH FLOOR, EAST WING,
RACE COURSE ROAD,
BENGALURU 560 001.
REPRESENTED BY ITS GENERAL MANAGER
SRI. ESWARA.
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CA No. 33 of 2024
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IN COP NO.160/2005
8. BANK OF BAHRAIN AND KUWAIT,
JOLLY MAKER CHAMBERS II,
GROUND FLOOR, 225,
NARIMAN POINT, MUMBAI 400 021.
REPRESENTED BY ITS LEGAL MANAGER
SRI. NEMISH KUMAR.
9. CANAR BANK, ARM I BRANCH,
ASSET RECONSTRUCTION DIVISION,
2ND FLOOR, CIRCLE OFFICE, SPENCER TOWERS,
NO. 86, M G ROAD, BENGALURU 560 001.
REPRESENTED BY ITS CHIEF MANAGER
SRI. PRASHANT PANDEY.
10. STATE BANK OF INDIA,
ASSET RECOVERY MANAGEMENT BRANCH,
MYSORE BANK BUILDING, BKG COMPLEX,
A BLOCK, 2ND FLOOR, AVENUE ROAD,
BENGALURU 560 009.
REPRESENTED BY ITS CHIEF MANAGER,
SRI. VENKATARAMAN DAS G.
11. CENTRAL BANK OF INDIA,
MERCHANT BANKING DIVISION,
DEBENTURE TRUSTEE SECTION,
4TH FLOOR, CEBTRAK BANK BUILDING,
M G ROAD, FORT, MUMBAI 400 028.
REPRESENTED BY ITS AUTHORISED OFFICER
MR.A.KESHAV BANGERA.
12. IFCI LIMITED.,
IFCI BHAVAN, 4TH FLOOR, 2
CUBBONPET MAIN ROAD,
N R SQUARE, BENGALURU 560 002.
REPRESENTED BY ITS ASST. G. MANAGER
SRI. P SIVAKUMAR.
13. ICICI BANK.,
ICICI BANK TOWERS,
BANDRA KURLA COMPLEX,
BANDRA EAST, MUMBAI 400 051.
REPRESENTED BY ITS LEGAL MANAGER.
...RESPONDENTS
(BY SRI. T P MUTHANNA., ADVOCATE FOR R1 TO R6 & R8 TO R10)
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CA No. 33 of 2024
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IN COP NO.160/2005
THIS APPLICATION IS FILED UNDER SECTION 456(1) & (2)
R/W SECTION 457 (1)(C) AND 2(A) & (B) R/W SECTION 468 OF THE
COMPANIES ACT, 1956 PRAYING TO A) DIRECT THE SASF,
MUMBAI TO HAND OVER THE POSSESSION OF THE SUBJECT
PROPERTY ALONG WITH ORIGINAL TITLE DEEDS TO ENABLE THE
OFFICIAL LIQUIDATOR TO TAKE FURTHER IMMEDIATE ACTION,
AND ALSO, TO CO-OPERATE WITH VALUER TO VALUE THE
PROPERTIES OF THE COMPANY (IN LIQUIDATION) INCLUDING ALL
RESPONDENTS HEREIN AND ETC.,
IN CA NO.34/2024:
BETWEEN:
OFFICIAL LIQUIDATOR OF
M/S BPL ENGINEERING LIMITED, (IN LIQUIDATION)
ATTACHED TO HIGH COURT OF KARNATAKA,
CORPORATE BHAVAN,
NOS.26-27, 12TH FLOOR,
RAHEJA TOWERS, M G ROAD,
BENGALURU 560 001.
...APPLICANT
(BY SMT.KRUTHIKA RAGHAVAN., ADVOCATE FOR OL)
AND:
1. STRESSED ASSETS STABILIZATION FUND -SASF
3RD FLOOR, IDBI TOWER, WTC COMPLEX,
CUFFE PARADE, MUMBAI - 400 005.
REPRESENTED BY ITS
DY. GENERAL MANAGER
MR. RAHUL KULKARNI.
2. KOTAK MAHINDRA BANK LTD.,
ASSETS RECONSTRUCTION DIVISION,
5TH FLOOR, SAMSON TOWER, NO. 402- L,
PANTHEON ROAD,EGMORE,
CHENNAI - 600 008.
REPRESENTED BY ITS
EXECUTIVE VICE PRESIDENT
MR. PARAG DHOLAKIA.
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IN COP NO.160/2005
3. HDFC BANK LTD.,
DEPARTMENT FOR SPECIAL OPERATIONS,
2ND FLOOR, ESEL CHAMBERS, 7 & 7/1,
LALBAGH ROAD, RICHMOND CIRCLE,
BENGALURU 560 027.
REPRESENTED BY ITS SENIOR MANAGER
SRI. FRANCY RAJU.
4. ASSET RECONSTRUCTION COMPANY (INDIA) LTD.,
(ARCIIL),
THE RUBY, 10TH FLOOR, 29,
SENAPATHI BAPAT MARG, DADAR (WEST)
MUMBAI - 400 028.
REPRESENTED BY ITS CHIEF MANAGER
SRI. ASHISH SHAHI.
5. JAMMU AND KASHMIR BANK
ZONAL OFFICE (SOUTH),
UNION STREET OFF INFANTRY ROAD,
BENGALURU 560 001.
REPRESENTED BY ITS CHIEF MANAGER
MR. FARID AHMED KHAN.
6. SICOM LIMITED,
SOLITAIRE CORPORATION PARK,
BUILDING NO.4, 6TH FLOOR,
GURU HARGOVINDJI ROAD,
(ANDHERI GHATKOPAR LINK ROAD)
CHAKALA, ANDHERI (EAST),
MUMBAI, MAHARASHTRA 400 093.
REPRESENTED BY ITS ASST. MANAGER
SRI. PRAMOD CHAUHAN.
7. KSIIDC LIMITED.,
KARNATAKA STATE INDUSTRIAL &
INFRASTRUCTURE DEVELOPMENT
CORPORATION LIMITED.,
NO 49, KHANIJA BHAVAN,
4TH FLOOR, EAST WING,
RACE COURSE ROAD,
BENGALURU 560 001.
REPRESENTED BY ITS GENERAL MANAGER
SRI. ESWARA.
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CA No. 33 of 2024
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IN COP NO.160/2005
8. BANK OF BAHRAIN AND KUWAIT,
JOLLY MAKER CHAMBERS II,
GROUND FLOOR, 225,
NARIMAN POINT, MUMBAI 400 021.
REPRESENTED BY ITS LEGAL MANAGER
SRI. NEMISH KUMAR.
9. CANAR BANK, ARM I BRANCH,
ASSET RECONSTRUCTION DIVISION,
2ND FLOOR, CIRCLE OFFICE, SPENCER TOWERS,
NO. 86, M G ROAD, BENGALURU 560 001.
REPRESENTED BY ITS CHIEF MANAGER
SRI. PRASHANT PANDEY.
10. STATE BANK OF INDIA,
ASSET RECOVERY MANAGEMENT BRANCH,
MYSORE BANK BUILDING, BKG COMPLEX,
A BLOCK, 2ND FLOOR, AVENUE ROAD,
BENGALURU 560 009.
REPRESENTED BY ITS CHIEF MANAGER,
SRI. VENKATARAMAN DAS G.
11. CENTRAL BANK OF INDIA,
MERCHANT BANKING DIVISION,
DEBENTURE TRUSTEE SECTION,
4TH FLOOR, CEBTRAK BANK BUILDING,
M G ROAD, FORT, MUMBAI 400 028.
REPRESENTED BY ITS AUTHORISED OFFICER
MR.A.KESHAV BANGERA.
12. IFCI LIMITED.,
IFCI BHAVAN, 4TH FLOOR, 2
CUBBONPET MAIN ROAD,
N R SQUARE, BENGALURU 560 002.
REPRESENTED BY ITS ASST. G. MANAGER
SRI. P SIVAKUMAR.
13. ICICI BANK.,
ICICI BANK TOWERS,
BANDRA KURLA COMPLEX,
BANDRA EAST, MUMBAI 400 051.
REPRESENTED BY ITS LEGAL MANAGER.
...RESPONDENTS
(BY SRI. T P MUTHANNA., ADVOCATE FOR R1 TO R6 & R8 TO R10)
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A/W CA NOS.34/2024, 240/2024
IN COP NO.160/2005
THIS APPLICATION IS FILED UNDER ORDER 39 RULE 1 AND
2 OF THE CODE OF CIVIL PROCEDURE 1908 FOR ISSUANCE OF
ORDER OF INJUNCTION AND R/W SECITON 446 OF THE
COMPANIES ACT, 1956 AND RULE 6 & 9 OF THE COMPANY COURT
RULES 1959, PRAYING TO A) TO PASS AN ORDER FOR
INJUNCTION/RESTRAINING THE SASF TO TAKE ANY ACTION
RELATED TO THE SALE OF THE SUBJECT PROPERTY MENTIONED
AT PARA NO.2 WHICH BELONGS TO THE COMPANY IN
LIQUIDATION AND ETC.,
IN CA NO.240/2024:
BETWEEN:
OFFICIAL LIQUIDATOR OF
M/S BPL ENGINEERING LIMITED,
(IN LIQUIDATION)
ATTACHED TO HIGH COURT OF KARNATAKA,
CORPORATE BHAVAN,
NOS.26-27, 12TH FLOOR,
RAHEJA TOWERS, M G ROAD,
BENGALURU 560 001.
...APPLICANT
(BY SMT.KRUTHIKA RAGHAVAN., ADVOCATE FOR OL)
AND:
1. STRESSED ASSETS STABILIZATION FUND -SASF
3RD FLOOR, IDBI TOWER, WTC COMPLEX,
CUFFE PARADE, MUMBAI - 400 005.
2. KOTAK MAHINDRA BANK LTD.,
ASSETS RECONSTRUCTION DIVISION,
5TH FLOOR, SAMSON TOWER, NO. 402- L,
PANTHEON ROAD,EGMORE,
CHENNAI - 600 008.
3. HDFC BANK LTD.,
DEPARTMENT FOR SPECIAL OPERATIONS,
2ND FLOOR, ESEL CHAMBERS, 7 & 7/1,
LALBAGH ROAD, RICHMOND CIRCLE,
BENGALURU 560 027.
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IN COP NO.160/2005
4. ASSET RECONSTRUCTION COMPANY (INDIA) LTD.,
(ARCIIL),
THE RUBY, 10TH FLOOR, 29,
SENAPATHI BAPAT MARG, DADAR (WEST)
MUMBAI - 400 028.
5. JAMMU AND KASHMIR BANK
ZONAL OFFICE (SOUTH),
UNION STREET OFF INFANTRY ROAD,
BENGALURU 560 001.
6. SICOM LIMITED,
SOLITAIRE CORPORATION PARK,
BUILDING NO.4, 6TH FLOOR,
GURU HARGOVINDJI ROAD,
(ANDHERI GHATKOPAR LINK ROAD)
CHAKALA, ANDHERI (EAST),
MUMBAI, MAHARASHTRA 400 093.
7. KSIIDC LIMITED.,
KARNATAKA STATE INDUSTRIAL &
INFRASTRUCTURE DEVELOPMENT
CORPORATION LIMITED.,
NO 49, KHANIJA BHAVAN,
4TH FLOOR, EAST WING,
RACE COURSE ROAD,
BENGALURU 560 001.
8. BANK OF BAHRAIN AND KUWAIT,
JOLLY MAKER CHAMBERS II,
GROUND FLOOR, 225,
NARIMAN POINT, MUMBAI 400 021.
9. CANAR BANK, ARM I BRANCH,
ASSET RECONSTRUCTION DIVISION,
2ND FLOOR, CIRCLE OFFICE, SPENCER TOWERS,
NO. 86, M G ROAD, BENGALURU 560 001.
10. STATE BANK OF INDIA,
ASSET RECOVERY MANAGEMENT BRANCH,
MYSORE BANK BUILDING, BKG COMPLEX,
A BLOCK, 2ND FLOOR, AVENUE ROAD,
BENGALURU 560 009.
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IN COP NO.160/2005
11. CENTRAL BANK OF INDIA,
MERCHANT BANKING DIVISION,
DEBENTURE TRUSTEE SECTION,
4TH FLOOR, CEBTRAK BANK BUILDING,
M G ROAD, FORT, MUMBAI 400 028.
12. IFCI LIMITED.,
IFCI BHAVAN, 4TH FLOOR, 2
CUBBONPET MAIN ROAD,
N R SQUARE, BENGALURU 560 002.
13. ICICI BANK.,
ICICI BANK TOWERS,
BANDRA KURLA COMPLEX,
BANDRA EAST, MUMBAI 400 051.
...RESPONDENTS
(BY SRI. T P MUTHANNA., ADVOCATE)
THIS APPLICATION IS FILED UNDER SECTION 151 OF CPC,
PRAYING TO VACATE THE INTERIM ORDER PASSED ON
14.03.2024, IN THE INTEREST OF JUSTICE.
THESE APPLICATIONS COMING ON FOR ORDERS THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
Common Oral Order in CA No.33/2024, CA No.34/2024,
CA No.240/2024 and OLR No.73/2024
In CA No.33/2024, the applicant seeks the following reliefs:
"a) Direct the SASF, Mumbai to hand over the
possession of the subject property along with
original title deeds to enable the Official Liquidator
to take further immediate action. And also, to co-
operate with valuer to value the properties of the
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company (in liquidation) including all respondents
herein.
b) Direct the SASF, Mumbai including other secured
creditors/ Respondents not to proceed with sale
under SARFAESI Act, 2002 after considerable
delay of 11 years and to co-operate with Official
Liquidator for the sale of subject property
mentioned at Para No.2 belonging to the company
(in liquidation).
c) Allow the Official Liquidator to engage M/s.INN
Tech Global Valuers Private Limited, IBBI
registered valuer for valuation of both movable and
immovable assets of the subject property
mentioned at Para No.2 belonging to the company
(in liquidation).
d) Allow the Official Liquidator to incur Rs.1,50,000/-
plus GST as valuation fees out of funds of the
company in liquidation.
and
e) Pass such other order or orders as this Hon'ble
Court may deem fit and proper in the
circumstances of the case."
2. In CA No.34/2024, the applicant seeks the following
reliefs:
" a) To pass an order for injunction/restraining the
SASF to take any action related to the sale of the
subject property mentioned at Para No.2 which
belongs to the company in liquidation.
b) To pass an order directing the SASF to withdraw
the public notice for Sale dated 01.03.2024 with
immediate effect.
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c) To pass an order directing the SASF to inform the
Official liquidator of any information/act which has
been done by the SASF in pursuance of the
proposed sale of subject property and also to direct
the SASF to withdraw from any act done in
pursuance of the sale of subject property.
and
d) To pass an order or directions in the interest of
justice."
3. In CA No.240/2024, the applicant seeks the following
reliefs:
"To vacate the interim order passed on 14.03.2024,
in the interest of justice."
4. In OLR No.73/2024, the petitioner/Official liquidator
seeks the following reliefs:
a. To take on record the valuation report submitted by
M/s.INN Tech Global Valuers Private Limited, IBBI
registered valuer, and consider the total value of
movable and immovable stated assets by them i.e.,
Rs. 203,24,20,981/- being the higher side as per
the comparative details mentioned in Para No. 6.
b. To permit the Official Liquidator for e-auction
through RailTel Corporation of India Ltd. of
movable and immovable assets of subject property,
as per prayer (b) made in C.A. No.33/2024 along
with terms and conditions of sale of subject
property belonging to the company (in liquidation).
and
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c. to pass such other order or orders as this Hon'ble
Court may deem fit and proper in the
circumstances of the case.
5. Learned Official Liquidator and learned secured
creditors, who are the parties to the aforesaid applications have
filed a joint memo reporting the settlement along with copy of
minutes of meeting held on 10.09.2024 in the office of the Official
Liquidator.
6. The decision taken at the meeting by both the parties
are as under:
"The Hon'ble High Court of Karnataka vide its order dated
31.08.2024 passed in CA No.33/2024 directed the
Applicant & Respondents to explore the possibility of
amicable settlement for the sale of movable and
immovable assets belonging to the company (in
liquidation)
Mr. Deepak Sahu, DGM, SASF, Mumbai has informed
that Joint lenders Meeting was held by them with all the
lenders on 09.09.2024, wherein they have decided that
the lenders will sell the assets of the company (in
liquidation) by standing outside the liquidation and sale
will be under the SARFEASI Act, 2002.
During the meeting, held on 10.09.2024 at 2.30 pm at the
Chamber of Official Liquidator, Bangalore discussions
were held with present members, and it was decided that
sale will be conducted through e-Auction and the secured
creditors will keep informed the Official Liquidator about
all the sale proceeding. The sale notice and terms and
conditions of sale will be as per mutual agreed terms
between the Official Liquidator and secured creditors. The
Reserve Price for Land & Building will be fixed for
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minimum of Rs. 180 crore and for the Plant & Machinery
will be fixed to minimum of Rs.3.38 Crore.
Further, it was decided 7.5% of total sale proceeds will be
kept aside with lenders and same will released or
deposited with the Official Liquidator as and when asked
for to meet the dues of EPFO and workmen.
The distribution of sale proceeds received from the sale of
movable and immovable assets will be as per the waterfall
mechanism of the Companies Act, 1956.
All the above steps will be subject to final decision of the
Hon'ble High Court of Karnataka in the C.A. No.33/2024.
With this the meeting was concluded."
7. As can been seen from the aforesaid settlement
arrived at between the parties, further steps would be taken after
disposal of CA No.33/2024. Accordingly, the terms of the
settlement is placed on record.
8. In the result, I pass the following:
ORDER
(i) CA No.33/2024, CA No.34/2024 and CA No.240/2024 are disposed of in terms of the settlement and the joint memo, reserving liberty in favour of the parties to seek recalling of the
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Sd/-
(S.R.KRISHNA KUMAR) JUDGE MDS List No.: 3 Sl No.: 3