Bombay High Court
The Bombay Dyeing And … vs Universal Wollen Mills And 2 Ors on 8 October, 2019
Bench: S.J. Kathawalla
1 / 3 901-CARBP-637-2018-UR.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION ARBITRATION PETITION NO. 637 OF 2018The Bombay Dyeing & Manufacturing Co.Ltd. … PetitionerVersusUniversal Woolen Mills & Ors. … RespondentsMr.Anoshak Daver a/w. Ms.Rujuta Patil i/b. Negandhi, Shah and Himayatullah forthe Petitioner.Mr.Viral Shukla a/w. Mrs.Priti Shukla, Mr.Darshan Ashar, Ms.Mansi Thakkar i/b.M/s.Shukla and Associates for the Respondents.Mr.Sahil Singhania a/w. Mr. Pankaj Singhania – CA of Mr.Anil Singhania, present inperson. CORAM : S.J. KATHAWALLA, JJ.
DATE : 8TH OCTOBER, 2019 (IN CHAMBERS)P.C.:
1. The Petitioner Company has an Arbitration Award in its favour whereunderRespondent No.1 ( Universal Woolen Mills) is liable to pay a sum of Rs.7,73,40,710/-along with interest thereon @ 24% p.a. and Rs.5 Lacs as costs. Pursuant to the Orderdated 27th September, 2019, the Bailif, who went to attach the immovable property ofRespondent No. 1, has submitted his report stating that he has not attached theimmovable property of Respondent No. 1 since the Punjab National Bank has takennitin ::: Uploaded on – 09/10/2019 ::: Downloaded on – 10/10/2019 00:11:33 ::: 2 / 3 901-CARBP-637-2018-UR.docsymbolic possession of the same.
2. The learned Advocate appearing for the Respondents is present before mealong with Mr.Sahil Singhania and Mr. Pankaj Singhania – CA of Mr.Anil Singhania.They have informed the Court that an amount of Rs.25 Crores (approximately) ispayable to the Punjab National Bank, and the property being factory land and buildingalong with plant and machinery at 242, Industrial Area, ad-measuring 1742.22 sq.yards and building thereon bearing MC No. B-XXIII-818, Plot No. 242, IndustrialArea, A.R.K. Road, Ludhiana bearing Wasika No. 4831 dated 30 th June, 1983 (the saidproperty), is mortgaged in favour of Punjab National Bank.
3. The learned Advocate appearing for the Petitioner on instructions statesthat except for taking symbolic possession of the said property, Punjab National Bankis not taking any steps to sell the said property. It is also stated that save and except thesaid property, the Company has no other assets. If they proceed to sell the saidproperty, the surplus proceeds can be ofered to the Petitioner in satisfaction of theAward or part thereof. Instead the bank has allowed the Directors to run the mill andcontinue to make money.
4. The learned Advocate appearing for the Respondents on instructions statesthat the said property, which is worth approximately between Rs.4.5 Crores to Rs.5Crores was sought to be auctioned on more than two occasions. However, theRespondents have not received any bid. In response, the learned Advocate appearingnitin ::: Uploaded on – 09/10/2019 ::: Downloaded on – 10/10/2019 00:11:33 ::: 3 / 3 901-CARBP-637-2018-UR.docfor the Petitioner on instructions states that Respondent No.1 continues to run themill, and therefore the purchasers may not be interested in giving their ofers. Hestates that the said property is worth much more than Rs.4.5 Crores to Rs.5 Crores.He states that Punjab National Bank for reasons best known to them, are not seriouslypursuing the sale of the mortgaged property and recover their dues.
5. Without going into the merits of the above allegations, I direct theProthonotary and Senior Master of this Court to forward a copy of this Order to theChairman, Punjab National Bank as well as to the Governor, Reserve Bank of India bye-mail or through any other mode of service.
6. The Punjab National Bank on the adjourned date shall submit its report tothis Court setting out therein, how they intend to proceed qua the said properties,which are mortgaged in their favour and realise their dues which may also assist thePetitioner and the other creditors, if any, of Respondent No.1.
7. Stand over to 4th November, 2019.
( S.J.KATHAWALLA, J. )nitin ::: Uploaded on – 09/10/2019 ::: Downloaded on – 10/10/2019 00:11:33 :::