In an appeal against dismissal of a motion, the High Court held that trustees of debenture holders are entitled to recover sums held by a Receiver. The Court directed the Receiver to pay the amount and denied a stay application.
Receiver directed to pay Rs. 5.50 crores to appellants; interest stops running from receipt date.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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Mgn
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
APPEAL NO.215 OF 2010 WITH
NOTICE OF MOTION NO.1254 of 2010
ICICI Bank Ltd.
..Appellants
Vs.
B.D. Industries & Anr. ...Respondents
Mr. Virag Tulzapurkar, Senior Counsel with Mr. Sachin Chandarana and Mr. Durgesh Khanpurkar i/b. M.K. Ambalal & Co., for Appellants.
Mr. D.D. Madon, Senor Counsel with Mr. Kirit Mody and Mr. R.P. Lote for respondent No.1.
CORAM : F.I. REBELLO & R.V.MORE, JJ.
DATE : 11TH JUNE, 2010
P.C.
The plaintiffs as trustees of debenture holders had taken out Motion that the
sum of Rs.5.50 crores which was Rs.2.00 crores as principal and Rs.3.50 crores as interest from the amount lying with the Receiver be deposited with them. The Respondents contend that such an application would not be maintainable. The learned trial Judge found merit in that submission and dismissed the Motion against which the present Appeal.
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whether there is any bar on this Court granting the relief as sought for by the Appellants. On behalf of the respondent learned Counsel contends that only provision for release of money is as contained in Order 39 Rule 10 and that does not apply to the facts of this case. In other words the relief as sought for is not provided for in the Code of Civil Procedure. Yet another aspect is that the money is with the Receiver which on investment will fetch bank rate of interest, whereas the debenture holders if the money is not paid are entitled to much higher rate of interest which if the Appellants succeed, will have to be paid from the principal amount lying with the Receiver thus reducing the amount available to other creditors. In these circumstances it will be open to the Court to invoke its inherent jurisdiction under Section 151 of the C.P.C..
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opinion, no case made out for stay. Hence application for stay rejected.
In view of the disposal of the Appeal the Notice of Motion disposed off.
( R.V.MORE, J.) (F. I. REBELLO, J.)
2 issues framed by the court
Whether there is a bar on the High Court granting relief for payment of debenture money by the Receiver.
Whether the Court can grant the relief at the instance of trustees of debenture holders despite absence of specific provision in Order 39 Rule 10 CPC.
2 provisions across 1 enactments
ICICI Bank Ltd.
B.D. Industries
F. I. Rebello
R. V. More
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
