High Court Karnataka High Court

Official Liquidator Of M/S H.K. … vs M/S State Bank Of India on 20 January, 2010

Karnataka High Court
Official Liquidator Of M/S H.K. … vs M/S State Bank Of India on 20 January, 2010
Author: Ram Mohan Reddy
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 20?" DAY OF JANUARY. 2_e.1;0.[_*~._v
BEFORE 

THE HON'BLE MR. JUSTICE  M0.EiAN~  "

COMPANY APPLICATION:'NO;"9".?:"7 OE EOOS 

IN COMPANY APPLICATION NO".-.728 (g§g"A'2009--. 
IN CO.P.NO._S..OF 199*: S * A.  H 

BETWEEN:

OFFICIAL LIQUIDATOROF _   ;   
M /S H.K.DATAREX PRIVATE LIMITED._  'V

[IN LIQUIDATION}  -_  CV 
ATTACHED TO. HIGH COURT..OEKARNAT;AKA
CORPORATE BHA:VAVN,_   _  ' 
NOS.26--27,;1'2'¥'I:.I_:«*-LC1QR;._;.__  _

RAHEJA TOwE:1RS;, M.'G.ROA_O " 

BANGALO'RE_5:SO om   ...APPLICANT
[BY SR11"'OEEPAK'e§{jSté1»\fJAYARAM. ADVS]

AND:

 V.  M/SSTA?' TRBANAK' ORINDIA
 STRESSED ASSETS MANAGEMENT
 GR'O~UI'*BR/--'{NC'I=I_, 4TH FLOOR.

SRESIOCENCY PI;A.3A
No.6}. RES'1jD1?;-NCY ROAD
RE1JR1:S_,ENTE;D BY ITS

; CHIEHVIANAOER ...RESPONDENT

1′ ” ‘ f{B”1″ SR1. ABDUL KHADER. ADV.)

THIS APPLICATION 18 FILED UNDER RULES 6 8: 9 OF

THIS COMPANIES {COURT} RULES. 1959 PRAYING TO

iii

MODIFY THE ORDER DATED 28.10.2009 PASSED BY THIS
HONBLE COURT IN C.A.NO.728/2008 AND ETC. ”

THIS APPLICATION COMING ON FOR oabfiiés-.5″rjT1%zs

DAY TH E COURT MADE THE FOLLOWING:

This application by the

modify the order dt. 28.l.Cr}2.Q090″in_0CA

permit him to retain the respective
Banks, until claims ., pp 0 it

2. This Court, by the State
Bank of 0l;iq:uidat.or to release.
in erores. while declining the
said relliefp off the application by order

lO.20G9V_0_pern1itting deposit of the entire amount

.0 I’€f;1ll3€0Cl.A’l)_§.{A”W&1y of sale of assets in a term deposit with

oflndia initially for a period of one year at

‘possible interest rate and a further direction to

expedite the matter under Rule 148 inviting claims by

‘Official Liquidator.

3

3. According to the Official Liquidator, the rate of
interest of 5% pa. offered by the State Bank of India for

a deposit. of Rs. Four crores, is grossly insufficient.fsiricpe

Indian Bank, Contonment Branch, Bangaiore

interest at the rate of 7% p.a:i~”o’n-.de};’)os_if

crores, while Punjab NationaiiA:’AE_3a*nlz{,

Branch, is paying interest at”–gf’i{3,tO 6.5%

in deposit.

4. Sri.Abdui Khadef, iearr1edd_ic-5_;;:isie1 for the State

Bank of India itisiéfoifficipaffbanking business

permits intelfest’a_.t”€h’e’»ra’te ‘of 5% p.a. on fixed deposit of
more than.__Rs,v O’ne4Vcrore.’e»and for less than Rs. One crore

at .»5f-€250/ii p.a. Vandflnothing more, in terms of a Circular.

A 5: Apparently the State Bank of India does not pay

interestaft-.a;=Vcompet.itiVe rate, on a fixed deposits in

corriparison with Indian Bank or the Punjab National

if Batik. in that View of the matter. deposit of the amount

.’ in State Bank of India does not ensure the best possible

515%

4

interest rate and hence the application deserves to be

allowed.

8. In the circumstances, the Official _

permitted to retain the fixed deposits Bya11e:R”‘V it

and Punjab National Bank until afe

which in any event shou1d_n..ot be’vbleyondillhsviiurnonths2it’

from today.

In the result’;’–..V:~A’ is ordered
accordingly and :’=2t3.lO.2009 in
c .A. No”.’72ie ,*.é;fQ0é:i§’ta modifie a.

Sd/-

I