IN THE HIGH COURT OF KARNATAKA AT BENGALURU ON THE 14th DAY OF MARCH, 2019 BEFORE THE HON'BLE MR. JUSTICE RAVI MALIMATH AND THE HON'BLE MR. JUSTICE S.G.PANDIT WRIT PETITION NOS.31030-31032 & 31923-31924 OF 2015 (GM-DRT) BETWEEN:
STATE TRADING CORPORATION LIMITED JAWAHAR VYAPAR BHAVAN TOLSTROY MARG NEW DELHI 110 001 REPRESENTED BY ITS CHIEF GENERAL MANAGER MR. SURENDER KUMAR. ... PETITIONER (BY SRI UDAYA HOLLA, SENIOR COUNSEL FOR SRI M.S.RAJENDRA, ADVOCATE) AND:
1. STATE BANK OF INDIA A BODY CORPORATE CONSTITUTED UNDER STATE BANK OF INDIA ACT 1955, WITH ITS CORPORATE CENTRE 'STATE BANK BHAVAN' MADAME CAMA ROAD, MUMBAI-400 021 AND ITS BRANCH OFFICE AMONGST OTHER PLACES AT STRESSED ASSETS MANAGEMENT GROUP BRANCH, 61, 4TH FLOOR, RESIDENCY PLAZA, RESIDENCY ROAD, BANGALORE-560 025 REPRESENTED BY ITS ASSISTANT GENERAL MANAGER.
2. CANARA BANK A BANK CONSTITUTED UNDER BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING ACT, 1970), HAVING ITS HEAD OFFICE AT BANGALORE, AND ITS BRANCH OFFICE AMONGST OTHER PLACES AT PRIME CORPORATE BRANCH, 'SHANKARA NARAYANA BUILDING' M.G.ROAD, BANGALORE-560 027 REPRESENTED BY ITS CHEF MANAGER 3. VIJAYA BANK A BANK CONSTITUTED UNDER BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING ACT, 1980), HAVING ITS HEAD OFFICE AT 41/2, M.G.ROAD, BANGALORE, AND ITS BRANCH OFFICE AMONGST OTHER PLACES AT OVERSEAS BRANCH 'SHRUTHA COMPLEX’ AT 19, PRIME ROSE ROAD, BANGALORE-560 025 REPRESENTED BY ITS CHIEF MANAGER 4. UNION BANK A BANK CONSTITUTED UNDER BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING ACT, 1970), HAVING ITS HEAD OFFICE AT 239, V.B. MARG, NARIMAN POINT, MUMBAI-400021, AND ITS BRANCH OFFICE AMONGST OTHER PLACES AT INDUSTRIAL FINANCE BRANCH, NO.23, ‘ARCHANA COMPLEX’, FIRST FLOOR, J.C. ROAD, BANGALORE-560002 REPRESENTED BY ITS ASSISTANT GENERAL MANAGER.
5. IDBI BANK LIMITED (FORMERLY INDUSTRIAL DEVELOPMENT BANK OF INDIA), A COMPANY CONSTITUTED UNDER THE COMPANIES ACT, 1956, AND A BANKING COMPANY WITHIN THE MEANING OF THE BANKING REGULATION ACT, 1949, HAVING ITS HEAD OFFICE AT ‘IDBI TOWER’, WTC COMPLEX, CUFFE PARADE, COLABA, MUMBAI-400005 AND ITS BRANCH ‘SHAKTHI COMFORT TOWERS’, 102, K.H. ROAD, BANGALORE-560027 REPRESENTED BY ITS DEPUTY GENERAL MANAGER.
6. AXIS BANK LIMITED A BANK CONSTITUTED UNDER COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT ‘TRISUL’ OPP: TO SAMARTHESHWARA TEMPLE, LAW GARDEN, ELLIS BRIDGE, AHAMEDABAD-380006 AND ITS BRANCH OFFICE AMONGST OTHER PLACES AT MAIN BRANCH, ‘ESQUIRE CENTRE’, 9, M.G. ROAD, BANGALORE-560001 REPRESENTED BY ITS DEPUTY VICE PRESIDENT 7. YES BANK A BANK CONSTITUTED UNDER COMPANIES ACT, 1956, AND A BANKING COMPANY WITHIN THE MEANING OF BANKING REGULATION ACT, 1949, HAVING ITS REGISTERED OFFICE AT ‘NEHRU CENTRE’, 9TH FLOOR, ‘DISCOVERY OF INDIA’, DR. A.B. ROAD, WORLI, MUMBAI-400018 AND HAVING ONE OF ITS BRANCHES AT ‘PRESTIGE OBELISK’, MUNICIPAL NO.3, KASTURBA ROAD, BANGALORE-560001 8. MESSERS STCL LIMITED, A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE, AT NO.7A, ‘STA CENTRE’ 3RD FLOOR, BANGALORE-560096.
9. FUTURE METALS PRIVATE LIMITED HAVING ITS REGISTERED OFFICE, AT NO.913, LEVEL 9, "BARTON CENTRE", M.G.ROAD, BANGALORE-560001 REPRESENTED BY ITS MANAGING DIRECTOR.
10. FUTURE EXIM (INDIA) PVT. LTD., HAVING ITS REGISTERED OFFICE, AT NO.913, LEVEL 9, "BARTON CENTRE", M.G.ROAD, BANGALORE-560001 REPRESENTED BY ITS MANAGING DIRECTOR.
11. UCO BANK MID CORPORATE BRANCH, 13/22, 1ST FLOOR, K.G.ROAD, BANGALORE-560009. ... RESPONDENTS (BY SRI M.R.SHASHIDHAR, ADVOCATE FOR R1, R2, R5 & R7;
R3, R4, R6, R8, R11 ARE SERVED;
SERVICE OF NOTICE TO R9 & R10 HELD SUFFICIENT.) THESE WRIT PETITIONS ARE FILED UNDER ARITICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 09.01.2015 PASSED BY THE DEBTS RECOVERY TRIBUNAL IN APPLICATION NOS.3008 OF 2014, 3009 OF 2014, 3010 OF 2014, 3011 OF 2014 AND 3274 OF 2011 PASSED IN OA NO.751 OF 2011 [ANNEXURE-V] AND THE ORDER DATED 07.07.2015 PASSED BY THE DEBT RECOVERY APPELLATE TRIBUNAL IN APPEAL MA NOS.18 OF 2015, 20 OF 2015, 21 OF 2015, 22 OF 2015 AND 19 OF 2015 [ANNEXURES-AB & AC], ETC.
THESE WRIT PETITIONS COMING ON FOR HEARING THIS DAY, RAVI MALIMATH J., MADE THE FOLLOWING:
ORDER Aggrieved by the order passed by the Debts Recovery Tribunal, Bengaluru (for short, ‘the Tribunal’), vide Annexure-V dated 09.01.2015 and as confirmed by the Debt Recovery Appellate Tribunal, Chennai dated 07.07.2015, the first defendant in OA 751/2011 before the Tribunal has filed these petitions.
2. In terms of the impugned order, interlocutory applications filed by the applicant – Banks before the Tribunal vide IA Nos.3008 to 3011 of 2014, 3274 of 2014 and 3188 of 2013 seeking for an order of attachment of monthly rents / leasehold rights payable by garnishee to defendant No.2 therein and a direction to garnishee to deposit the attached rents every month with the first applicant – Bank therein have been allowed by the Tribunal. An Attachment Before Judgment was granted with respect to the schedule properties in IA Nos.3009/2014 and 3188/2013, until further orders of the Tribunal. The said order passed by the Tribunal on 09.01.2015 is extracted hereinbelow:
“ IAs i.e. IA 3008/2014, IA 3010/2014, IA 3011/2014 and IA 3274/2014 stand allowed. The Garnishee is directed as sought in IA 3008/2014, IA 3010/2014, IA 3011/2014 and IA 3274/2014.
IA 3009/2014 and IA 3188/2013 stand allowed. Attachment before judgment is granted in respect to schedule properties of IA 3009/2014 and IA 3188/2013 till further order of this Tribunal. All schedule properties of IA 3009/2014 and IA 3188/2013 stand attached before judgment till further order.”
3. The appeals filed challenging the said order before the Debt Recovery Appellate Tribunal, Chennai in MA Nos.18 to 22 of 2015 were dismissed by the DRAT. Thereafter the instant petition is filed. A detailed order was passed on 05.08.2015 by this Court. Considering the fact that the very existence of the guarantee is in doubt, the operation of the impugned orders were stayed by this Court for six weeks. It was also ordered that the writ petitioner be restrained from transferring, alienating or encumbering the property at Jawahar Vyapar Bhavan, Tolstoy Marg, New Delhi – 110 001 and not to create any third party interest in relation thereto. The said interim order was continued until further orders on 29.09.2015.
, 4. The interim order granted in these petitions has continued in existence even as on date. There is no application even to vacate the said order.
5. Sri Udaya Holla, learned Senior Counsel appearing for the petitioners addressed arguments on merits. However, on considering the facts and circumstances, we are of the view that rather than going to the merits of the impugned orders, keeping in mind the fact that the writ petitions are pending for the last nearly four years and proceedings have not made any progress before the Tribunal, it would only be in the interest of the writ petitioner as well as respondent-banks that the litigation comes to an end as early as possible. Learned counsel for respondent Nos.1, 2, 5 and 7 have no objection for the same.
6. We deem it just and necessary that the interim order granted by this Court on 05.08.2015 should be extended till the disposal of the matter before the Debts Recovery Tribunal.
Accordingly, matter is remitted to the Debts Recovery Tribunal, Bengaluru with a direction to dispose off the matter pending before it in OA No.751 of 2011, as expeditiously as possible. If necessary, the matter to be considered on a day-to-day basis.
In the meanwhile, the interim order granted by this Court on 05.08.2015 shall be continued till the disposal of the matter before the DRT, Bengaluru.
Writ petitions disposed off accordingly.
Sd/- Sd/-
JUDGE JUDGE sac* CT-HR