{"id":117004,"date":"2011-08-26T00:00:00","date_gmt":"2011-08-25T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/artson-vs-navin-on-26-august-2011-2"},"modified":"2016-09-22T14:43:54","modified_gmt":"2016-09-22T09:13:54","slug":"artson-vs-navin-on-26-august-2011-2","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/artson-vs-navin-on-26-august-2011-2","title":{"rendered":"Artson vs Navin on 26 August, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Artson vs Navin on 26 August, 2011<\/div>\n<div class=\"doc_author\">Author: Md Shah,<\/div>\n<pre>  \n Gujarat High Court Case Information System \n    \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/755\/2010\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 755 of 2010\n \n\nWith\n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 756 of 2010\n \n\n \n \n=========================================================\n\n \n\nARTSON\nENGINEERING LTD - Petitioner(s)\n \n\nVersus\n \n\nNAVIN\nD KOTHARI - Respondent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nMR BHATT FOR MS REETA CHANDARANA\nfor\nPetitioner(s) : 1, \nMR VIVEK N MAPARA for Respondent(s) :\n1, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE MD SHAH\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 02\/12\/2010 \n\n \n\nCOMMON\nORAL ORDER<\/pre>\n<p>Special<br \/>\n\tCivil Application No.755 of 2010 challenges order dated 4-1-2010<br \/>\n\tpassed below application  Ex.13 in Special Darkhast No.16 of 2009 by<br \/>\n\tthe learned Principal Senior Civil Judge, Jamnagar, while  Special<br \/>\n\tCivil Application No.756 of 2010  challenges order dated 27-10-2009<br \/>\n\tpassed below application  Ex.5 in Civil Misc. Application No.101 of<br \/>\n\t2009 by learned 8th Addl. Senior Civil Judge, Jamnagar.\n<\/p>\n<p>As<br \/>\n\tboth the petitions have arisen out of same facts and parties are<br \/>\n\talso same, both the petitions were heard together and are being<br \/>\n\tdecided by this common order.\n<\/p>\n<p>Heard<br \/>\n\tlearned Senior Advocate, Mr.M.R.Bhatt for Ms.Reeta Chandarana for<br \/>\n\tthe petitioner and learned advocate, Mr.Vivek Mapara for the<br \/>\n\trespondent in both the petitions.\n<\/p>\n<p>Rule.\n<\/p>\n<p>\tLearned advocate, Mr.Vivek Mapara, for the respondent waives service<br \/>\n\tof rule. With the consent of the learned advocates appearing for the<br \/>\n\tparties, the matter is taken up for final disposal.\n<\/p>\n<p>Short<br \/>\n\tfacts are that the petitioner was awarded a project by M\/s Essar<br \/>\n\tConstruction Pvt. Ltd, Jamnagar and a sub-contract for construction<br \/>\n\tof Tank Pad was given by the petitioner to the respondent at the<br \/>\n\tsaid turnkey project site with various technical specifications. The<br \/>\n\twork of respondent was of inferior quality and repairs were to be<br \/>\n\tcarried out before the same could be offered to M\/s Essar<br \/>\n\tConstruction. However,  since repairs were not carried out by the<br \/>\n\trespondent, a notice was issued to the respondent on 25-4-1998. The<br \/>\n\trespondent filed Special Civil Suit No.81 of 2002 against the<br \/>\n\tpetitioner for a decree of Rs.9,19,724\/- wrongly showing his<br \/>\n\tregistered office. The petitioner vide written statement submitted<br \/>\n\tthat only Rs.51,634\/- were payable to the respondent on his<br \/>\n\tfulfilling the terms and conditions of the sub contract. Meanwhile,<br \/>\n\tpetitioner preferred reference before the Board for Industrial<br \/>\n\tFinancial Reconstruction under the provisions of Sick Industrial<br \/>\n\tCompanies (Special Provisions) Act, 1985 which was registered on<br \/>\n\t16-3-2004. Several proceedings were held before BIFR and a draft<br \/>\n\trehabilitation scheme was considered by it on 17-9-2007 inviting<br \/>\n\tobjections from the public by way of public notice. Said scheme was<br \/>\n\tsanctioned by BIFR on 27-11-2007.  On 12-8-2008, an ex-parte decree<br \/>\n\twas passed in Special Civil Suit No.81 of 2002 which was not known<br \/>\n\tto the petitioner. It was informed by M\/s Essar Construction to the<br \/>\n\tpetitioner that a garnishee order was passed in Special Darkhast<br \/>\n\tNo.16 of 2009 filed by the respondent. The petitioner preferred an<br \/>\n\tapplication  Under Order 9 Rule 13 of the Code of Civil Procedure<br \/>\n\tpraying for setting aside the ex-parte decree along with an interim<br \/>\n\tapplication being Civil Misc. Application No.101 of 2009.  However,<br \/>\n\tsaid interim application was rejected vide order dated 27-10-2009 by<br \/>\n\tthe 8th Senior Civil Judge, Jamnagar, in Civil Misc.<br \/>\n\tApplication No.101 of 2009, which is under challenge by way of<br \/>\n\tSpecial Civil Application No.756 of 2010. Petitioner also filed an<br \/>\n\tapplication below Ex.13 praying for stay of execution proceedings in<br \/>\n\tSpecial Darkhast No.16 of 2009. However, said application was also<br \/>\n\trejected vide order dated 4-1-2010, which is under challenge  by way<br \/>\n\tof Special Civil Application No.755 of 2010.\n<\/p>\n<p>It<br \/>\n\tis submitted by learned Senior Advocate, Mr.Bhatt, that the<br \/>\n\tprovisions of the Act are mandatory and the sanctioned Scheme is<br \/>\n\tbinding on all parties. He has further submitted that some of the<br \/>\n\twinding up petitions filed against the defendant were dismissed by<br \/>\n\tthe High Court of Bombay as the defendant has been implementing<br \/>\n\tsanctioned Scheme approved by BIFR. He placed reliance on an order<br \/>\n\tdated 19-9-2008  passed by the Appellate Authority for Industrial<br \/>\n\tand Financial Reconstruction in the appeal preferred by one of the<br \/>\n\tunsecured creditors of the petitioner Company against the sanctioned<br \/>\n\tscheme wherein it was observed that since there is no legal<br \/>\n\tinfirmity in the approved scheme of BIFR, dues of the unsecured<br \/>\n\tcreditors were directed to be satisfied as per the sanctioned Scheme<br \/>\n\tand not by giving preferential treatment.\n<\/p>\n<p>It<br \/>\n\tis to be noted that the provisions of the Act are mandatory and<br \/>\n\tsanctioned Scheme of rehabilitation is binding on all parties. The<br \/>\n\tfact the respondent original plaintiff is an unsecured creditor is<br \/>\n\tan undisputed fact and hence, dues of the respondent are to be<br \/>\n\tcleared as per the provisions made in the approved scheme. In view<br \/>\n\tof the above, both the petitions are required to be allowed.\n<\/p>\n<p>Both<br \/>\n\tthe petitions are allowed and order dated 4-1-2010 passed below<br \/>\n\tapplication  Ex.13 in Special Darkhast No.16 of 2009 by the learned<br \/>\n\tPrincipal Senior Civil Judge, Jamnagar,  as well as order dated<br \/>\n\t27-10-2009 passed below application  Ex.5 in Civil Misc. Application<br \/>\n\tNo.101 of 2009 by learned 8th Addl. Senior Civil Judge,<br \/>\n\tJamnagar and both the applications stand allowed. Dues of the<br \/>\n\trespondent shall be cleared by the petitioner as per the approved<br \/>\n\tscheme of BIFR. It is informed to this Court that certain<br \/>\n\tinstalments have been paid to other creditors as the scheme is in<br \/>\n\toperation since 2007 and hence, arrears of payment as on date shall<br \/>\n\tbe made by the petitioner as per the scheme within six weeks from<br \/>\n\ttoday and further payments as per the schedule stipulated in the<br \/>\n\tScheme. Rule is made absolute in each petition with no order as to<br \/>\n\tcosts.\n<\/p>\n<p>\t\t\t\t\t\t\t\t(M.D.SHAH,J.)<\/p>\n<p>radhan<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Artson vs Navin on 26 August, 2011 Author: Md Shah, Gujarat High Court Case Information System Print SCA\/755\/2010 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 755 of 2010 With SPECIAL CIVIL APPLICATION No. 756 of 2010 ========================================================= ARTSON ENGINEERING LTD &#8211; Petitioner(s) Versus NAVIN [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-117004","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Artson vs Navin on 26 August, 2011 - Free Judgements of Supreme Court &amp; 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