IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 08/03/2006
Coram
The Hon'ble Mr. Justice P.SATHASIVAM
and
The Hon'ble Mr. Justice J.A.K.SAMPATHKUMAR
Writ Appeal Nos.50 to 52 of 2006
and
WAMP Nos.95 to 101 of 2006
M/s.Angu Parameswari Textiles
Private Limited,
Rep. by its Managing
Director V.Marimuthu,
Sirumalai Road, Reddipatti Post,
Dindigul 624 003. ... Appellant in all WAs.
-Vs-
1. Chairman cum Managing Director,
Indian Bank, 69, Rajaji Salai,
Chennai-600 001.
2. Indian Bank,
Main Branch, Dindigul,
represented by its
Asst. General Manager,
Circle Office 100-101,
East Avanimoola Street,
Madurai 625 001.
3. The Chief Manager (Authorised Officer),
Indian Bank, Circle Office,
100-101 East Avanimoola Street,
Madurai 625 001.
4. The Registrar,
Debt Recovery Tribunal,
Kaveri Complex, Trichy Road,
Ramanathapuram, Coimbatore.
5. Union of India, rep. by its
Joint Secretary to Govt.,
Ministry of Finance, New Delhi. ... Respts. in all WAs.
Appeals under Clause 15 of Letters Patent against the Order dated 5.1
2.2005, made in WPMP Nos.6211, 6212 and 6215 of 2005, on the file of this
Court.
!For Appellant : Mr.S.R.Sundar
^For R-2 & R-3 : Mr.S.Rangasamy
For R-1 & R-5 : No appearance.
:COMMON JUDGMENT
(Judgment of the Court was delivered by P.SATHASIVAM, J.)
In view of the limited issue raised and of the fact that the Writ
Appeals have been filed against the interim order passed by the learned single
Judge, we dispose of the main Appeals by this Judgment.
2. Heard learned counsel for the appellant as well as respondents-2
and 3.
3. The appellant/writ petitioner, viz., M/s.Angu Parameswari Textiles
Private Limited (rep. by its Managing Director V.Marimuthu), Dindigul,
aggrieved by the auction proceedings initiated by the Indian Bank in respect
of the loan amount, approached this court by filing W.P. Nos.5638, 5639 and
5640 of 2005. Along with the said Writ Petitions, they also filed W.P.M.P.
Nos.6211, 6212 and 6215 of 2005, seeking for an order of injunction,
restraining R-2 & R-3/Bank from proceeding with the auction of their property
mentioned in the schedule. By order dated 21.02.2005, the learned single
Judge granted injunction without any condition. When the said Miscellaneous
Petitions came up for further hearing on 05.12.2005, after hearing both sides,
the learned Judge made the injunction absolute on condition the petitioner
pays 50% of the entire due outstanding under the impugned loan, 25% of which
shall be paid on or before 05.01.2006 and balance 25% to be paid on or before
05.02.2006. In the same order, the learned Judge made it clear that in
default of any one of the conditions, the injunction granted shall stand
vacated automatically. Questioning the said order, the petitioner has filed
the above Appeals.
4. While ordering notice to respondents-1 to 3 in the above Writ
Appeals, First Bench of this Court, by order dated 02.02.2006, indicated that
the appeals may be disposed of at the admission stage. In the same order, the
Bench stayed the condition imposed by the learned single Judge relating to
deposit and also directed respondents-1 to 3 not to take any further coercive
step. At this stage, the matter is posted before us.
5. Learned counsel for the appellant heavily relied on the details
such as principal amount, interest and the amount repaid by the appellant as
well as the outstanding as on the date of filing of the Writ Petition. The
relevant details are available in paragraph No.13 of the affidavit filed in
support of the Writ Petitions. The said paragraph is extracted here-under:-
“The petitioner states that the total principal availed for all the
loans is Rs.523.25 lakhs and the total interest due up to 27.10.2002 is
Rs.410.67 lakhs and the total amount payable together with the principal and
interest is Rs.933.92 lakhs. The petitioner has paid the principal to the
tune of Rs.366.67 lakhs and the interest to the tune of Rs.218.37 lakhs, which
aggregates to Rs.585.04 lakhs. The petitioner states that they have paid the
principal and interest to the tune of 62.64% and the balance outstanding as
per the second respondent and the third respondent is only 348.88 lakhs, which
is 37.36%.”
6. No doubt, learned counsel appearing for the Bank disputes the
above statement and to-day, he files a Memo before this Court. The said memo
contains the following particulars:-
“Amount due as on 26-10-2002 … Rs.3,48,87,476-93 P.
(Suit amount at DRT)Balance as on 08-09-2004 ie., … Rs.5,00,36,774-93 P.
SARFASI Notice date
Balance as on today ... Rs.7,51,83,311-00 P."
ie on 08-03-2006
7. Learned counsel appearing for the appellant has brought to our
notice that in view of the balance outstanding is only Rs.348.88 lakhs, the
amendment made to second proviso of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002, is not
applicable to the respondents/Bank. According to him, in view of the fact
that the appellant/textile is a sick industry and has approached the Board for
Industrial and Financial Reconstruction (BIFR) and also of the fact that the
matter is posted for further hearing on 22.03.2006, considering the grievance
of the appellant, the interim order may be continued without imposition of any
condition.
8. We have referred to the figures furnished by the Bank as well as
the outstanding as per the accounts of the appellant/textile. Taking note of
these aspects and of the fact that the Writ Petitions are pending and both the
parties can very well project their respective claims at the time of final
hearing of the Writ Petitions, we are of the view that ends of justice would
be met by continuing the injunction order against the respondents by imposing
the following conditions:-
(a) In modification of the order of the learned single Judge dated 0
5.12.2005 made in WPMP Nos.6211, 6212 and 6215 of 2005, the appellant/Textile
is directed to pay Rs.75,00,000/- (Rupees seventy five lakhs only) to the 2nd
respondent/bank, viz., Indian Bank, Main Branch, Dindigul (rep. by its Asst.
General Manager, Circle Office 100-101, East Avanimoola St., Madurai 625 001).
(b) Out of the said amount, the appellant is permitted to pay
Rs.25,00,000/- (Rupees twenty five lakhs only) on or before 31.03.2006 and the
balance of Rs.50,00,000/- (Rupees fifty lakhs only) on or before 30.04.2006.
In the case of failure on the part of the appellant to comply with any one of
the conditions referred above, the respondents/bank are free to proceed
further. It is made clear that the above direction is without prejudice to
the stand of both the parties.
9. Writ Appeals are disposed of accordingly. Connected Miscellaneous
Petitions are closed.
JI.
To
1. Chairman cum Managing Director, Indian Bank, 69, Rajaji Salai,
Chennai-600 001.
2. Asst. General Manager, Indian Bank, Main Branch, Dindigul, Circle Office
10 0-101, East Avanimoola Street,
Madurai 625 001.
3. The Chief Manager (Authorised Officer),
Indian Bank, Circle Office, 100-101 East Avanimoola Street,
Madurai 625 001.
4. The Registrar, Debt Recovery Tribunal,
Kaveri Complex, Trichy Road, Ramanathapuram, Coimbatore.
5. Joint Secretary to Govt., Union of India,
Ministry of Finance, New Delhi.