Allowed

Canara Bank v. the Official Liquidator of M/S Pristine Switchgears India Pvt. Ltd.

Bombay HC8 Dec 2016CA/4/2017

Case brief

AI extract

What is this about?

The High Court allowed an application by a secured creditor for symbolic possession of a factory's immovable property during winding up, subject to workmen's dues and mandatory notices to the liquidator and ex-directors following an inventory.

What did the court decide?

Application allowed; symbolic possession of factory, land, and building granted subject to inventory, notice to liquidator and others, and workmen's dues.

Canara Bank Vs the Official Liquidator of M/S… — Execution and Attachment | Bombay HC (2016)

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CAL 746-16.doc

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Chittewan

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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COMPANY APPLICATION (L) NO.746 OF 2016 IN

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COMPANY PETITION NO.906 OF 2014

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Canara Bank, Camp Branch … Applicant In the matter between : Mr. Amit Mittal Prop. Of Shyam Udyog … Petitioner Versus M/s Pristine Switchgears (I) Pvt. Ltd. … Respondent …..

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Ms. Vaishali Bhilare for the Applicant. Mr. M. Agre i/b G.B. Kedia for the Petitioner. Mr. Raju Jain for Ex-Director.

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Mr. Mahendhar Aithe, Company Prosecutor for Official Liquidator.

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CORAM : S.C.GUPTE, J.

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DATE : 8 DECEMBER 2016.

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P.C. :

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. Heard learned Counsel for the parties.

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2 This is an application of a secured creditor of the company (in Liqn.) seeking symbolic possession of the immovable property of the company, namely, factory, land and building at the address mentioned in prayer clause (a). The secured creditor has also proceeded under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) against the company (in Liqn.). Learned Counsel for the original Petitioner opposes this application

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CAL 746-16.doc

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and submits that possession ought to be continued with the Official Liquidator. Since the Applicant is a secured creditor of the company (in Liqn.) and desires to remain outside winding up and realise its security, the Liquidator may hand over symbolic possession taken by the Liquidator to the Applicant.

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3 Since the company has been ordered to be wound up, there may be claims of workmen which rank pari pasu with the claim of the Applicant. The Applicant shall file an appropriate application under the provisions of SARFAESI Act as regards the workmen's dues and give notice to the Official Liquidator. Subject to such application and the pari pasu rights of the workmen represented by the Liquidator, the application is allowed in terms of prayer clause (a). The Applicant may proceed to take possession of the property after making an inventory of movables lying with the property. Before making such inventory, a notice shall be given to the Official Liquidator as also to the Ex-Directors of the company and the petitioning creditor.

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4 The application is, accordingly, disposed of.

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(S.C.GUPTE, J.)

Canara Bank v. the Official Liquidator of M/S Pristine Switchgears India Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. the Official Liquidator of M/S Pristine Switchgears India Pvt. 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

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