{"id":194930,"date":"2006-03-08T00:00:00","date_gmt":"2006-03-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-angu-parameswari-textiles-vs-chairman-cum-managing-director-on-8-march-2006"},"modified":"2016-10-30T22:03:11","modified_gmt":"2016-10-30T16:33:11","slug":"ms-angu-parameswari-textiles-vs-chairman-cum-managing-director-on-8-march-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-angu-parameswari-textiles-vs-chairman-cum-managing-director-on-8-march-2006","title":{"rendered":"M\/S.Angu Parameswari Textiles vs Chairman Cum Managing Director on 8 March, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">M\/S.Angu Parameswari Textiles vs Chairman Cum Managing Director on 8 March, 2006<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n IN THE HIGH COURT OF JUDICATURE AT MADRAS           \n\nDated: 08\/03\/2006 \n\nCoram \n\nThe Hon'ble Mr. Justice P.SATHASIVAM   \nand \nThe Hon'ble Mr. Justice J.A.K.SAMPATHKUMAR      \n\nWrit Appeal Nos.50 to 52 of 2006\nand \nWAMP Nos.95 to 101 of 2006   \n\nM\/s.Angu Parameswari Textiles  \nPrivate Limited,\nRep. by its Managing \nDirector V.Marimuthu,\nSirumalai Road, Reddipatti Post,\nDindigul 624 003.                               ... Appellant in all WAs.\n\n-Vs-\n\n1. Chairman cum Managing Director, \nIndian Bank, 69, Rajaji Salai,\nChennai-600 001. \n\n2. Indian Bank,\nMain Branch, Dindigul,\nrepresented by its\n        Asst. General Manager,\nCircle Office 100-101,\nEast Avanimoola Street,\nMadurai 625 001. \n\n3. The Chief Manager (Authorised Officer),\nIndian Bank, Circle Office,\n100-101 East Avanimoola Street, \nMadurai 625 001. \n\n4. The Registrar,\nDebt Recovery Tribunal,\nKaveri Complex, Trichy Road, \nRamanathapuram, Coimbatore.   \n\n5. Union of India, rep. by its\n        Joint Secretary to Govt.,\nMinistry of Finance, New Delhi. ... Respts. in all WAs.\n\n        Appeals under Clause 15 of Letters Patent against the Order dated  5.1\n2.2005,  made  in  WPMP  Nos.6211,  6212 and 6215 of 2005, on the file of this\nCourt.\n\n!For Appellant          :  Mr.S.R.Sundar\n\n^For R-2 &amp; R-3          :  Mr.S.Rangasamy\nFor R-1 &amp; R-5           :  No appearance.\n\n:COMMON JUDGMENT       \n\n(Judgment of the Court was delivered by P.SATHASIVAM, J.)  \n\n        In  view  of  the  limited  issue raised and of the fact that the Writ\nAppeals have been filed against the interim order passed by the learned single\nJudge, we dispose of the main Appeals by this Judgment. \n        2.  Heard learned counsel for the appellant as well  as  respondents-2<\/pre>\n<p>and 3.\n<\/p>\n<p>        3.  The appellant\/writ petitioner, viz., M\/s.Angu Parameswari Textiles<br \/>\nPrivate Limited  (rep.    by  its  Managing  Director  V.Marimuthu), Dindigul,<br \/>\naggrieved by the auction proceedings initiated by the Indian Bank  in  respect<br \/>\nof the  loan  amount, approached this court by filing W.P.  Nos.5638, 5639 and<br \/>\n5640 of 2005.  Along with the said Writ Petitions, they  also  filed  W.P.M.P.<br \/>\nNos.6211,  6212  and  6215  of  2005,  seeking  for  an  order  of injunction,<br \/>\nrestraining R-2 &amp; R-3\/Bank from proceeding with the auction of their  property<br \/>\nmentioned in  the  schedule.    By  order dated 21.02.2005, the learned single<br \/>\nJudge granted injunction without any condition.  When the  said  Miscellaneous<br \/>\nPetitions came up for further hearing on 05.12.2005, after hearing both sides,<br \/>\nthe  learned  Judge  made  the injunction absolute on condition the petitioner<br \/>\npays 50% of the entire due outstanding under the impugned loan, 25%  of  which<br \/>\nshall  be paid on or before 05.01.2006 and balance 25% to be paid on or before<br \/>\n05.02.2006.  In the same order, the  learned  Judge  made  it  clear  that  in<br \/>\ndefault  of  any  one  of  the  conditions, the injunction granted shall stand<br \/>\nvacated automatically.  Questioning the said order, the petitioner  has  filed<br \/>\nthe above Appeals.\n<\/p>\n<p>        4.   While  ordering  notice  to  respondents-1 to 3 in the above Writ<br \/>\nAppeals, First Bench of this Court, by order dated 02.02.2006, indicated  that<br \/>\nthe appeals may be disposed of at the admission stage.  In the same order, the<br \/>\nBench  stayed  the  condition  imposed by the learned single Judge relating to<br \/>\ndeposit and also directed respondents-1 to 3 not to take any further  coercive<br \/>\nstep.  At this stage, the matter is posted before us.\n<\/p>\n<p>        5.   Learned  counsel  for the appellant heavily relied on the details<br \/>\nsuch as principal amount, interest and the amount repaid by the  appellant  as<br \/>\nwell as  the  outstanding  as on the date of filing of the Writ Petition.  The<br \/>\nrelevant details are available in paragraph No.13 of the  affidavit  filed  in<br \/>\nsupport of the Writ Petitions.  The said paragraph is extracted here-under:-\n<\/p>\n<p>        &#8220;The  petitioner  states  that the total principal availed for all the<br \/>\nloans is Rs.523.25 lakhs and the  total  interest  due  up  to  27.10.2002  is<br \/>\nRs.410.67  lakhs  and the total amount payable together with the principal and<br \/>\ninterest is Rs.933.92 lakhs.  The petitioner has paid  the  principal  to  the<br \/>\ntune of Rs.366.67 lakhs and the interest to the tune of Rs.218.37 lakhs, which<br \/>\naggregates to  Rs.585.04 lakhs.  The petitioner states that they have paid the<br \/>\nprincipal and interest to the tune of 62.64% and the  balance  outstanding  as<br \/>\nper the second respondent and the third respondent is only 348.88 lakhs, which<br \/>\nis 37.36%.&#8221;\n<\/p>\n<p>        6.   No  doubt,  learned  counsel  appearing for the Bank disputes the<br \/>\nabove statement and to-day, he files a Memo before this Court.  The said  memo<br \/>\ncontains the following particulars:-\n<\/p>\n<blockquote><p>        &#8220;Amount due as on 26-10-2002    &#8230;  Rs.3,48,87,476-93 P.<br \/>\n        (Suit amount at DRT)<\/p>\n<p>        Balance as on 08-09-2004 ie., &#8230;  Rs.5,00,36,774-93 P.<\/p><\/blockquote>\n<pre>\n                SARFASI Notice date\n\nBalance as on today                     ...  Rs.7,51,83,311-00 P.\"\n                ie on 08-03-2006\n\n<\/pre>\n<blockquote><p>        7.   Learned  counsel  appearing  for the appellant has brought to our<br \/>\nnotice that in view of the balance outstanding is only  Rs.348.88  lakhs,  the<br \/>\namendment  made  to second proviso of the Securitisation and Reconstruction of<br \/>\nFinancial Assets and Enforcement  of  Security  Interest  Act,  2002,  is  not<br \/>\napplicable to  the  respondents\/Bank.    According to him, in view of the fact<br \/>\nthat the appellant\/textile is a sick industry and has approached the Board for<br \/>\nIndustrial and Financial Reconstruction (BIFR) and also of the fact  that  the<br \/>\nmatter  is posted for further hearing on 22.03.2006, considering the grievance<br \/>\nof the appellant, the interim order may be continued without imposition of any<br \/>\ncondition.<\/p><\/blockquote>\n<p>        8.  We have referred to the figures furnished by the Bank as  well  as<br \/>\nthe outstanding  as per the accounts of the appellant\/textile.  Taking note of<br \/>\nthese aspects and of the fact that the Writ Petitions are pending and both the<br \/>\nparties can very well project their respective claims at  the  time  of  final<br \/>\nhearing  of  the Writ Petitions, we are of the view that ends of justice would<br \/>\nbe met by continuing the injunction order against the respondents by  imposing<br \/>\nthe following conditions:-\n<\/p>\n<p>        (a)  In  modification of the order of the learned single Judge dated 0<br \/>\n5.12.2005 made in WPMP Nos.6211, 6212 and 6215 of 2005, the  appellant\/Textile<br \/>\nis  directed to pay Rs.75,00,000\/- (Rupees seventy five lakhs only) to the 2nd<br \/>\nrespondent\/bank, viz., Indian Bank, Main Branch, Dindigul (rep.  by its  Asst.<br \/>\nGeneral Manager, Circle Office 100-101, East Avanimoola St., Madurai 625 001).\n<\/p>\n<p>        (b)  Out  of  the  said  amount,  the  appellant  is  permitted to pay<br \/>\nRs.25,00,000\/- (Rupees twenty five lakhs only) on or before 31.03.2006 and the<br \/>\nbalance of Rs.50,00,000\/- (Rupees fifty lakhs only) on or before 30.04.2006.\n<\/p>\n<p>In the case of failure on the part of the appellant to comply with any one  of<br \/>\nthe  conditions  referred  above,  the  respondents\/bank  are  free to proceed<br \/>\nfurther.  It is made clear that the above direction is  without  prejudice  to<br \/>\nthe stand of both the parties.\n<\/p>\n<p>        9.  Writ Appeals are disposed of accordingly.  Connected Miscellaneous<br \/>\nPetitions are closed.\n<\/p>\n<p>JI.\n<\/p>\n<p>To\n<\/p>\n<p>1.  Chairman cum Managing Director, Indian Bank, 69, Rajaji     Salai,<br \/>\nChennai-600 001.\n<\/p>\n<p>2.  Asst.  General Manager, Indian Bank, Main Branch, Dindigul, Circle  Office<br \/>\n10 0-101, East Avanimoola Street,<br \/>\nMadurai 625 001.\n<\/p>\n<p>3.  The Chief Manager (Authorised Officer),<br \/>\nIndian Bank, Circle Office, 100-101 East Avanimoola Street,<br \/>\nMadurai 625 001.\n<\/p>\n<p>4.  The Registrar, Debt Recovery Tribunal,<br \/>\nKaveri Complex, Trichy Road, Ramanathapuram, Coimbatore.\n<\/p>\n<p>5.  Joint Secretary to Govt., Union of India,<br \/>\nMinistry of Finance, New Delhi.\n<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court M\/S.Angu Parameswari Textiles vs Chairman Cum Managing Director on 8 March, 2006 IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated: 08\/03\/2006 Coram The Hon&#8217;ble Mr. Justice P.SATHASIVAM and The Hon&#8217;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 [&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":[8,13],"tags":[],"class_list":["post-194930","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S.Angu Parameswari Textiles vs Chairman Cum Managing Director on 8 March, 2006 - Free Judgements of Supreme Court &amp; 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