IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 11TH DAY OF JANUARY, 2019 BEFORE THE HON’BLE MR. JUSTICE ALOK ARADHE COMPANY APPLICATION NO.316 OF 2017 IN COMPANY PETITION NO.162 OF 2013 Between:
1. SBICAP Trustee Company Ltd., A Company incorporated under the Companies Act, 1956 Having its registered office at 202, Maker Tower E Cuffe Parade, Mumbai – 400 005.
2. State Bank of Inida A banking corporation constituted under the State Bank of India Act, 1955 (23 of 1955), Having its corporate Centre at State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai – 400 021.
And having it Industrial Finance Branch at Stressed Asset Management Branch, 2nd Floor, Office Complex building, Local Head Office Compound, No.65, St.Marks Road, Bengaluru – 560 001.
3. Axis Bank Limited, A company incorporated under the Companies Act, 1956 and A banking company within the meaning of Section 5© of the Banking Regulation Act, 1949 and having its registered office at Trishul, Third Floor, Opp. Samartheswar Temple, Law Garden, Ellisbridge, Ahmedabad – 380 006, Gujarat, India And having its corporate office at Axis House, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai – 400 025.
4. Bank of Baroda, A body corporate under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) Having its head office at Baroda House, P.B.No.506, Mandavi, Vadodara – 396 006.
Acting through its branch office at P.O.Box 11745, Samata Building, General Bhosale Marg, Nariman Point, Mumbai – 400 021.
5. Bank of India, A body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its head office at Star House, C-5, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051.
and having its large Corporate Branch at Ground Floor, Oriental Building, 364, DN Road, Fort Mumbai – 400 001.
6. Central Bank of India A body corporate constituted under the Banking Companies (Acquisition and Transfer Undertakings) Act, 1980 and having its Corporate office at Chandramukhi, Nariman Point, Mumbai – 560 021.
and having its Corporate Finance Branch (earlier known as Industrial Finance Branch) at Chandramukhi, Ground Floor, Nariman Point, Mumbai – 560 021.
7. Corporation Bank, A body corporate under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1982 (40 of 1980) having its Corporate Office at Mangaladevi Temple Road, Pandeshwar, Mangaluru 575 001.
and having its Industrial Finance Branch at Rallaram Memorial Building, 1st Floor, CSI compound, Mission Road, Bengaluru – 560 027.
8. The Federal Bank Limited, a company within the meaning of the Companies Act, 1956, having its registered office at Federal Towers, Aluva – 683 101, Kerala and having its branch office at 44 and 45, Residency Road, Bengaluru – 560 025.
9. IDBI Bank Limited, A company incorporated under the Companies Act, 1956 and a Banking company within the meaning of the Banking Regulations Act, 1949 having its head office at IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005.
Maharashtra, India and acting through its branch office at Corporate Banking Group – FAMG, 9th Floor, IDBI Tower, WTC Complex, Cuffe Parade, Colaba Mumbai – 400 005.
10. Indian Overseas Bank, a body corporate under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its central office at 763, Anna Salai, Chennai – 600 002.
and its branch office at ‘Harikripa’, 26-A, S.V.Road, Santacruz (W), Mumbai – 400 054.
11. Punjab & Sind Bank, a body corporate under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 having its Head Office at 21, Rajendra Place, New Delhi 110 008.
and having amongst others, A branch office at J.K.somani Building, British Hotel Lane, Fort, Mumbai – 400 023.
12. Punjab National Bank, a body corporate under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) having its head office at 7, Bhikaji Cama Place, New Delhi – 110 066.
acting through its large corporate branch at Centenary Building, 28, M.G.Road, Bengaluru – 560 001.
13. State Bank of Mysore, a body corporate constituted under The State Bank of India, (Subsidiary Banks) Act, 1959, having its head office at Kempe Gowda Road, Bengaluru – 560 009.
and its Corporate Accounts Branch at NO.18, Ramanashree Arcade, M.G.Road, Bengaluru – 560 001.
14. UCO Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its head office at 10, BTM Sarani, Kolkata – 700 001, West Bengal, India.
And its branch office at 1st Floor, 13/22, K.G.Road, Bengaluru -560 009.
15. United Bank of India, a body corporate under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) having its head office at 11, Hemanta Basu Sarani, Kolkata – 700 001.
acting through its branch office at 40, K.G.Road, Bengaluru – 560 009.
... Applicants (By Sri.Ganapathi Hegde, Dua Associates, Advocate) And:
The Official Liquidator of United Breweries (Holdings) Limited (in liquidations), Attached to High Court of Karnataka, 12th Floor, Raheja Towers, Bengaluru – 560 001.
…Respondent (By Smt.Anupama Hebbar, Advocate) This application is filed under Section 446(1) of the Companies Act, 1956, praying to grant leave to the applicants to proceed against the Respondent to enforce their rights in respect of the shares under the Release of Residual Interest Agreement in O.S.No.25877 of 2013 on the file of Hon’ble XXVIII Additional City Civil Judge, Bengaluru.
This application coming on for Orders this day, the Court made the following:-
ORDER Sri.Ganapathi Hegde, learned counsel for the applicants.
Smt.Anupama Hebbar, learned counsel for Official Liquidator.
2. This application has been filed under Section 446 (1) of the Companies Act, 1956.
3. The applicants filed original suit, namely, O.S.No.25877/2013 before the XXVIII Additional City Civil Judge, Bengaluru against the IDBI Trusteeship Services Limited, India Global Competitive Fund, SREI, KAL, the respondent herein and KFIL praying for enforcement of their rights in respect of the shares under the Release of Residual Interest Agreement, amongst other reliefs. The respondent herein has been arrayed as defendant No.5 in the suit. During the pendency of the suit, applicant Nos.2 to 15 had filed the instant Company Petition before this Court seeking for an order of winding up of the respondent. A Bench of this Court, by order dated 19.11.2016, had directed the winding up of the respondent-Company and appointed an Official Liquidator. The applicants seek enforcement of their rights in respect of the shares under the Release of Residual Interest Agreement in the original suit before the trial Court.
The applicants therefore, by means of this application, seek permission of this Court to proceed against the respondent in O.S.No.25877/2013.
4. Learned counsel for the applicants submitted that in case the applicants are not allowed to proceed with the suit, public money is at stake. It is further submitted that the proceeding in the suit are fixed at the stage of framing of issues.
5. On the other hand, learned counsel for the Official Liquidator submits that in particular, she has no objection to the proceeding being undertaking in the suit. However, it is submitted that the Official Liquidator at present is not in a position to effectively represent the interest of the creditors, as the Official Liquidator is not in possession of any records.
6. I am conscious of the fact that several proceedings are pending between the parties.
However, admittedly, in respect of the civil suit, there is no stay by any Court of competent jurisdiction. Therefore, there is no bar to proceed with the trial of the suit. Taking note of the fact that the amount of public money is involved for which the suit has been filed for recovery of the amount in question, I do not see any impediment in directing the trial Court to proceed with the suit.
7. It is needless to state that the Official Liquidator would be at liberty to make appropriate application before the trial Court in case of any difference.
8. In case such an application is filed, the trial Court shall deal with the application in accordance with law.
9. The trial Court is directed to proceed further with the trial of the proceedings. Accordingly, the present application is disposed of.
It is needless to state that in case the applicants seek any order against the company in liquidation, they shall not execute the same without the leave of this Court.
Sd/- JUDGE dn/-