Allowed

Five Fate Infrastructure Pvt. Ltd. v. Amrut Industries Ltd.

Bombay HC11 Mar 2014CA/473/2013

Case brief

AI extract

What is this about?

This application by an assignee of secured creditors sought payment from the Official Liquidator's funds. The Court directed payment of Rs. 10.54 crores to the applicant, earmarking the balance for workers and debenture holders, subject to an undertaking to return funds.

What did the court decide?

The Official Liquidator is directed to pay Rs. 10.54 crores to the applicant out of Rs. 12.69 crores, while Rs. 2.15 crores is earmarked for workers and debenture holders.

Five Fate Infrastructure Pvt. Ltd. Vs Amrut… — Insolvency and Bankruptcy | Bombay HC (2014)

¶1

910-CA-473-13.DOC

¶2

Shephali

¶3

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY APPLICATION NO. 473 OF 2013

¶4

IN

¶5

COMPANY PETITION NO. 893 OF 1997

¶6

Five Fate Infrastructure Pvt. Ltd.…Applicants
Versus
Amrut Industries Ltd.…Respondents

¶7

Mr. Rahul Narichania, Senior Advocate i/b M/s. ALMT Legal for
the Applicants.

¶8

Ms. Yogini Chauhan, Assistant Official Liquidator for the
Respondents.

¶9

CORAM: G.S. PATEL, J DATED: MARCH 11, 2014

¶10

PC:-

¶11

1.This is a company application by an assignee of three secured
creditors. The assignee, Five Fate infrastructure Pvt. Ltd., seeks an
order that from the funds in the hands of the Official Liquidator of
M/s. Amrut Industries Limited, the company in liquidation, an
amount of Rs.12 Crores be paid to the applicant, on the applicant
undertaking to bring this amount back in Court as and when
required.

¶12

1 of 3

¶13

910-CA-473-13.DOC

¶14

2.By an order dated 15th January 2014, I directed the Official
Liquidator to file a further affidavit. This has been done. An
affidavit dated 31st January 2014 by the Official Liquidator is on
record.

¶15

3.In paragraph 4 of that affidavit, the Official Liquidator has set
out the claims of various classes of creditors and contributories. A
total of Rs. 46,95,35,807/- are the dues to secured / preferential
creditors. Of these, an amount of Rs.1,17,50,000/- are the
adjudicated claims of the workers. These are yet to be re-verified.
Debenture holders’ claims account for another Rs. 93,22,066/-.
The remaining is the debt due to three banks, i.e., HSBC, Shamrao
Vitthal Cooperative Bank Limited and Oriental Bank of Commerce.
The applicant is the assignee of all these three banks. In other
words, apart from an amount of about Rs.2,10,72,066/- (the
aggregate of the claims of the workers and the debenture holders),
the remaining secured/preferential creditors’ claim is due to the
applicant. Unsecured creditors dues amount for another
approximate Rs. 17 Crores while the contributories’ claims are little
over Rs. 9 lakhs.

¶16

4. The Company had various properties as set out in paragraphs 7 and 8 of the Official Liquidator’s affidavit. The properties mentioned in paragraph 7 of that affidavit have been sold. These include movable assets at Taloja and Hyderabad, and an immovable property at Taloja. Neither the applicant nor its assignors had or have any security in respect of the immovable property at Taloja. The total amount realized from sale of these movable properties and this one immovable property is Rs.12.69 crorers.

¶17

2 of 3

¶18

910-CA-473-13.DOC

¶19

5.It must be noted that the Company in liquidation has other
properties elsewhere in country. These properties are yet to be put
to sale. The value of those properties has not been taken into
consideration at this stage.

¶20

6.Having regard to the claim of the applicant, the claims of the
workers and the claims of debenture holders, as also the amount in
hands of the Official Liquidator, it would, in my view, be
appropriate if the applicant is granted at least partial relief, while at
the same time securing the claims of the workers and debenture
holders in full.

¶21

7.Hence, the Official Liquidator is directed to pay to the
applicant a sum of Rs.10.54 crores within four weeks from today.
This amount is to be paid out of the amount of Rs.12.69 crores
currently lying in the hands of the Official Liquidator to the credit
of the Company in liquidation. The remaining Rs.2.15 crores is to
be earmarked to meet the claims of the workers and debenture
holders. The applicant shall separately furnish an undertaking to
bring the entire amount of Rs.10.54 crores in court, if so required,
within eight weeks from the date it is directed to do so.

¶22

8.Subject to the above and on these conditions, the Company
Application is disposed of.

¶23

9.Liberty to the applicants to apply afresh after the remaining
properties of the Company in liquidation are put to sale.

¶24

(G. S. PATEL, J.)

¶25

3 of 3

Five Fate Infrastructure Pvt. Ltd. v. Amrut Industries Ltd.

Case brief

What is this about?

What did the court decide?

Five Fate Infrastructure Pvt. Ltd. v. Amrut Industries Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

The State of Maharashtra Vs the Court Receiver, High Court, Bombay

Hindustan Lever Ltd. Vs M/S.Shivcharan Agarwal.

Shadab Ahmed Khan and Anr. Vs Mohammed Akhtar Shaikh and Mukesh Gover Gala and Anr. ..Applicants

The State of Maharshtra through the Commissioner of Sales Tax Vs M/S. Systems Communications and Ors.

Kasha Syncotex Ltd. Vs Smps Engineers and Consultants (Bom).P.Ltd.

Sh. Jagdish Lal Gupta Vs Tara Industrires Limited and 8 Ors.