Allowed

Bank of Baroda (Vijaya Bank) v. Bengal Mills Stores Pvt. Ltd.

DRT18 Mar 2024MA/42/2024

Case brief

AI extract

What is this about?

In a Misc. Application, the Tribunal directed the Registrar of DRT-II to release deposited auction proceeds with interest to the DRT-I Registrar for subsequent transfer to the appellant, following a High Court order and a final judgment in the principal application.

What did the court decide?

Direction to Registrar DRT-II Mumbai to release deposited amount with accrued interest to Registrar DRT-I Mumbai for release to the applicant.

18/03/2024

Ex.
No.

Before Presiding Officer Dr. Rekha G.
Dhakar, DRT-1, Mumbai.
Roznama in MA 42 of 2024
In
TOA No.2/2021
Bank of Baroda (Vijaya Bank) Vs
Bengal Mills Stores Pvt Ltd

Next date

Advocate Madhur Rai i/b PRS Legal
appeared for the Applicant.
1. By way of the present MA, the Applicant
has prayed that direct the Ld. Registrar,
DRT-II, Mumbai to release the deposited
amount of Rs.1,24,10,288/- alongwith the
accrued interest to the Applicant and/or
to transfer the same to Ld. Registrar,
DRT-I, Mumbai to the credit of TOA
No.2/2021 with further direction to the
Ld. Registrar, DRT-I, Mumbai to release
the said amount with interest to the
Applicant.
2. Heard Ld. Counsel for the Applicant.

3. It is admitted fact that during the
pendency of the Original Application, the
Writ Petition No.2356/2018 was filed
before the Hon’ble High Court of Bombay
and in the said Writ Petition, the Hon’ble
High Court vide order dated 21.08.2018
after hearing both the Counsels has taken
on record the consent minutes of the

order dated 21^stAugust, 2018 and also
directed this Tribunal to dispose off the OA alongwith the SA owing to the consent terms arrived between the parties.
4. For the convenience, the said terms of the consent minutes, as recorded in the order
of Hon’ble Bombay High Court dated
21.08.2018, are reproduced herein
below:
“1. The Respondents to conduct the Auction of the Movable Property viz. “All that piece and parcel of Hypothecated Goods i.e. seamless straight, welded, Erw Spiral welded Steel pipes M/s Plates etc. of various diameters length and thickness stored at land bearing Plot No.37/A, Survey No.339/1/1, Vallivie, Dahisar, Mori, Mumbai, Panvel Road, Navi Mumbai, Dist. Thane- 400612 (more particularly set out in Exhibit “K” to the above Writ
Petition) on 24.08.2018 between 11.00 a.m. to 1.00 p.m. having reserve bid of Rs.1,24,00,000/-
2. The petitioner is at liberty to participate in the said auction and is also at liberty to bring the
prospective buyer for purchase of the movable properties set out in Clause 1 above.
3. Amount realized from the sale of movable properties as set out in Clause 1 above shall be deposited
with the Ld. Registrar, DRT-II, Mumbai after deducting the sale

order dated 21^stAugust, 2018 and also

directed this Tribunal to dispose off the
OA alongwith the SA owing to the consent
terms arrived between the parties.

4. For the convenience, the said terms of the
consent minutes, as recorded in the order

of Hon’ble Bombay High Court dated

21.08.2018, are reproduced herein

below:

“1. The Respondents to conduct the
Auction of the Movable Property viz.
“All that piece and parcel of
Hypothecated Goods i.e. seamless
straight, welded, Erw Spiral welded
Steel pipes M/s Plates etc. of various
diameters length and thickness
stored at land bearing Plot No.37/A,
Survey
No.339/1/1,
Vallivie,
Dahisar, Mori, Mumbai, Panvel
Road, Navi Mumbai, Dist. Thane-
400612 (more particularly set out in
Exhibit “K” to the above Writ

Petition) on 24.08.2018 between
11.00 a.m. to 1.00 p.m. having
reserve bid of Rs.1,24,00,000/-

2. The petitioner is at liberty to
participate in the said auction and is
also
at
liberty
to
bring
the

prospective buyer for purchase of
the movable properties set out in
Clause 1 above.

3. Amount realized from the sale of
movable properties as set out in
Clause 1 above shall be deposited

with the Ld. Registrar, DRT-II,
Mumbai after deducting the sale

	expenses incurred in the aforesaid auction.
	4. The Ld. Registrar, DRT-II, Mumbai is hereby directed to invest the amount received by him under Clause 3 above with any Nationalised Bank and the same shall be invested from time to time.
	5. The amount deposited/invested as per Clause 4 above shall be subject to the outcome of the Original Application No.150/2011, which is pending for hearing.
	6. Parties are at liberty to file pleading in O.A. and S.A. with prior permission of DRT.
	7. The present Writ Petition be disposed off in terms of the aforesaid.” (emphasis supplied)
5.	Thus, as per the said terms of the consent
	minutes, the Applicant conducted the
	auction of the hypothecated goods and
	recovered an amount of Rs.1,24,10,288/-
	from the sale of the hypothecated goods and deposited the said amount with the
	Ld. Registrar, DRT-II, Mumbai through Cheque No.200051 dated 14.11.2018.
6.	It is important to note here that the OA was originally filed before the Ld. DRT-II,
	Mumbai being OA No.150/2011, which
	later on due to change in jurisdiction was

expenses incurred in the aforesaid
auction.

4. The Ld. Registrar, DRT-II,
Mumbai is hereby directed to invest
the amount received by him under
Clause
3
above
with
any
Nationalised Bank and the same
shall be invested from time to time.

5. The amount deposited/invested
as per Clause 4 above shall be
subject to the outcome of the
Original Application No.150/2011,
which is pending for hearing.

6. Parties are at liberty to file
pleading in O.A. and S.A. with prior
permission of DRT.

7. The present Writ Petition be
disposed
off
in
terms
of
the
aforesaid.”
(emphasis supplied)

Thus, as per the said terms of the consent

minutes, the Applicant conducted the

auction of the hypothecated goods and

recovered an amount of Rs.1,24,10,288/-

from the sale of the hypothecated goods
and deposited the said amount with the

Ld. Registrar, DRT-II, Mumbai through
Cheque No.200051 dated 14.11.2018.

It is important to note here that the OA
was originally filed before the Ld. DRT-II,

Mumbai being OA No.150/2011, which

later on due to change in jurisdiction was

transferred	to	this	Tribunal	and
registered as	TOA	No.2	of 2021.

transferred

this

Tribunal

and

registered as

TOA

No.2

of 2021.

7.	It is also important to note here that the amount which was deposited with the Ld. Registrar, DRT-II, Mumbai, was required to be adjusted after the outcome of the OA and now final order in the OA is passed on 21.02.2024 thereby the OA is allowed and
	thus, the Applicant is now entitled to
	realise the said amount of
	Rs.1,24,10,288/- which to be adjusted in
	the impugned account of the Defendants and thus, the said amount is required to
	be disbursed to the Applicant of OA
	alongwith the accrued interest for
	adjustment of the same in the account
	impugned.
8.	In view of the submission of the Applicant
	as well as facts and circumstances of the
	present MA, the present MA is hereby
	allowed and the Ld. Registrar of DRT-II,
	Mumbai is hereby directed to release the
	amount alongwith accrued interest
	(which was deposited in furtherance of
	the order of Hon’ble High Court of
	Bombay dated 21.08.2018) to the Ld.
	Registrar of DRT-I, Mumbai and Ld.
	Registrar of DRT-I is hereby directed

It is also important to note here that the
amount which was deposited with the Ld.
Registrar, DRT-II, Mumbai, was required
to be adjusted after the outcome of the OA
and now final order in the OA is passed on
21.02.2024 thereby the OA is allowed and

thus, the Applicant is now entitled to

realise
the
said
amount
of

Rs.1,24,10,288/- which to be adjusted in

the impugned account of the Defendants
and thus, the said amount is required to

be disbursed to the Applicant of OA

alongwith
the
accrued
interest
for

adjustment of the same in the account

impugned.

In view of the submission of the Applicant

as well as facts and circumstances of the

present MA, the present MA is hereby

allowed and the Ld. Registrar of DRT-II,

Mumbai is hereby directed to release the

amount
alongwith
accrued
interest

(which was deposited in furtherance of

the order of Hon’ble High Court of

Bombay dated 21.08.2018) to the Ld.

Registrar of DRT-I, Mumbai and Ld.

Registrar of DRT-I is hereby directed

Bank of Baroda (Vijaya Bank) v. Bengal Mills Stores Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Bank of Baroda (Vijaya Bank) v. Bengal Mills Stores Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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Case details

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