IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27th DAY OF FEBRUARY 2019 BEFORE THE HON’BLE MR. JUSTICE ALOK ARADHE WRIT PETITION NO.38663 OF 2018 (GM-KSFC) BETWEEN:
M/S INNOVATIVE STUDIOS PVT LTD A COMPANY INCORPORATED UNDER THE INDIAN COMPANIES ACT,1956 HAVING ITS REGISTERED OFFICE AT NO.135, OUTER RING ROAD VARTHUR HOBLI, MARATHAHALLI JUNCTION BANGALORE-560 037 REPRESENTED BY ITS DIRECTOR MRS. RADHIKA ACHUTHAN AND ALSO HAVING ITS PLACE OF BUSINESS AT: INNOVATIVE FILM CITY PLOT NO.24 & 26 KIADB INDUSTRIAL AREA BIDADI, RAMANAGARA DISTRICT ... PETITIONER (BY SRI.DHYAN CHINNAPPA, SR. COUNSEL A/W SRI.ROHAN TIGADI, ADVS. FOR M/S CREST LAW PARTNERS) AND KARNATAKA STATE FINANCIAL CORPORATION LIMITED A BODY CORPORATE ESTABLISHED UNDER THE STATE FINANCIAL CORPORATION ACT,1951 AND HAVING ITS HEAD OFFICE AT KSFC BHAVAN, NO.1/1, THIMMAIAH ROAD, NEAR CANTONMENT RAILWAY STATION BENGALURU-560 062 REPRESENTED BY ITS MANAGING DIRECTOR ... RESPONDENT (BY SRI.BIPIN HEGDE, ADV.) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE CANCELLATION OF THE OTS SCHEME EXTENDED TO THE PETITIOENR COMPANY VIDE LETTER DATED 9.8.2018 VIDE ANNEX-A AND QUASH THE LETTER DATED 4.6.2018 VIDE ANNEX-C IN SO FAR AS IT WAIVES ONLY 50% OF PENAL INTEREST AND FIXES A TIME SCHEDULE OF THREE MONTHS FOR PAYMENT AND ETC.
THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER Sri. Dhyan Chinnappa, learned Senior Counsel along with Sri. Rohan Tigadi, learned counsel for the petitioner.
Sri. Bipin Hedge, learned counsel for the respondent.
Petition is admitted for hearing. With the consent of the parties, it is heard finally.
2. In this petition, the petitioner inter alia has prayed for the following reliefs:-
(i) Issue a writ of certiorari quashing the cancellation of the OTS Scheme extended to the Petitioner Company vide letter dated 09.08.2018 bearing No.KSFC/BO/RMR/ D-210/2018-19 (Annexure-A);
(ii) Issue a writ in the nature of certiorari quashing the letter dated 04.06.2018 bearing No.KSFC/BO/RMR/D- 210/2018-19 (Annexure-C) in so far as it waives only 50% of penal interest and fixes a time schedule of three months for payment;
(iii) Issue a writ in the nature of mandamus to direct the respondent to waive 100% of the penal interest and grant additional time to make payment of the entire OTS amounts in terms of the letters of the petitioner dated 06.06.2018 and 28.06.2018 (Annexure-‘Y’ and Annexure-’AA’);
(iv) Pass any such other order in the facts and circumstances of the case in the interests of justice and equity.”
3. When the matter is taken up today, learned Senior counsel for the petitioner submits that in compliance of the interim order dated 31.08.2018, the petitioner has deposited a sum of Rs.4 crores within a period of five weeks. It is further stated that petitioner is ready and willing to settle his loan amount and in this regard the petitioner be granted liberty to submit a representation under the ‘One Time Settlement’ scheme or for rescheduling of the loan amount within a period of two weeks from the date of receipt of certified copy of this order passed today.
4. On the other hand, learned counsel for the respondent – Corporation submits that, if such a representation is made, the same shall be dealt with in accordance with law.
5. In view of the aforesaid submissions made and in the facts of the case, petition is disposed of. In case, the petitioner submits a representation either for ‘One Time Settlement’ or for rescheduling of the loan amount, the same shall be dealt with by the respondent - Competent Authority in accordance with law by a speaking order within a period of two weeks from today. It is made clear that this Court has not expressed any opinion on the merits of the case.
In view of disposal of the main petition, I.A.Nos.1/2018 and 2/2018 do not survive for consideration. Hence, they are disposed of.
Sd/- JUDGE VMB