Disposed

Indian Overseas Bank v. Hi-Tech Mineral Industries Covai Pvt. Ltd.

DRT14 May 2024TA/27/2023

Case brief

AI extract

What is this about?

The Tribunal disposed of an application for recovery of dues as settled outside court based on a joint compromise memo. The bank confirmed settlement of out-of-court settlement amounts and agreed to issue a no-dues certificate and release title deeds.

What did the court decide?

Application disposed of as settled outside Tribunal; Release of title deeds and personal guarantees directed.

Indian Overseas Bank versus Hi-Tech Mineral Industries Covai… — Company and Corporate | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL –I AT CHENNAI

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Dated this 14^th Day of May, 2024

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PRESENT: SHRI A.S.JAYACHANDRA Presiding Officer

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T.A. No.27 of 2023

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Indian Overseas Bank Main Branch Big Bazaar Street, Coimbatore – 641 001.

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. . . Applicant

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-VERSUS-

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1. M/s.Hi-Tech Mineral Industries Covai Pvt Ltd.,

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Swathi Courts, 112-B, Kattoor Street,

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Coimbatore – 641 037

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2. Ranjith Chandar

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S/o. Late.P.Venkittapathy

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Managing Director of M/s. Hi-Tech Mineral Industries Covai Pvt Ltd., Swathi Courts, 1128, Kattoor Street,

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Coimbatore – 641 037

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Also at:-

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4, Co-operative Colony, Uppilipalayam, Coimbatore – 641 015.

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3. Ms. Mallika,

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W/o. Late.P.Venkittapathy 1, RMNP Co Operative Colony, Uppilipalayam Post, Sowripalayam Road, Coimbatore – 641 015.

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4. P. Ganesh

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S/o. Palanisamy, 1/38-A, Vinayakar Koil Street Opp. Mullai Nagar, Maruthamalai Road, P.N.Pudur Post, Coimbatore – 641 041

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5. M/s. Hi-Tech Electrothermics Private Ltd.,

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97-100, Pathy’s Tower Kattoor Street, Pappanaickenpalayam, Coimbatore – 641 037

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6. M/s. Hi-Tech Trades and Consultants Private Ltd., 97-100, Pathy’s Tower, Kattoor Street, Pappanaickenpalayam, Coimbatore – 641 037

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7. M/s. Yuktha Wind Farm Pvt Ltd.,

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YUKTH Ladies Hostel, Old No.144J, New No.337A, Avanashi Road, Coimbatore – 641 004

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8. State Bank of India

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Stressed Assets Management Branch Raja Plaza, 1^st Floor, 1112, Avinashi Road, Coimbatore – 641 037.

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9. The Official Liquidator,

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M/s. Hi-Tech Mineral Industries Covai Pvt Ltd., Swathi Courts, 112-B, Kattoor Street, Coimbatore – 641 037. [Amended as per order dated 20.07.2022 Passed in IA No.2419/2022.

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. . . Defendants

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: - PROCEEDINGS DT.14.05.2024 - :

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Applicant by Sh.M.L.Ganesh, Adv, Sh.Balu, and Chief Manager appears through VC, a/w Sh.Hussain, Adv.

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D1- No representation

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D2, D3 by Sh.Vairava Subramaniam, Adv. appears through VC and Sh.Kandan, Adv.

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None for other defendants.

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I. The Ld. Counsel for the applicant bank had pointed out to a joint compromise memo filed by the parties dt 7.5.2024. The memo is not disputed by the ld Counsel appearing for D2 and D3.

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II. It is submitted in the memo that the OTS initially sanctioned on 12.12.2023 and later modified by another sanction letter dt 14.3.2024 is acted upon and the bank had issued no due certificate.

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III. The applicant bank also confirms under joint memo that all the title deeds in respect of unencumbered properties are to be released within

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10 days after recording of the compromise by this Tribunal and the personal guarantees of Defendants 2,3 and 5 to 7 would be released.

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IV. It is also submitted that Defendant No-1 Company is under liquidation.

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V. The litigations initiated by defendants 2,3,5 TO 7 are to be withdrawn by the parties which challenged the sale of secured assets and further litigation of an appeal pending before the Hon’ble DRAT filed by Defendant No-3.

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VI. Heard the Ld. Counsel.

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VII. The Ld. Counsel for the Defendants 2 and 3 submits that the SA’s filed pending in TSA no-14, 15, 16 and 18 are already withdrawn today in the course of proceedings.

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VIII. He also submits that the appeal before the Hon’ble DRAT bearing No.IA-203/2023 is also withdrawn.

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IX. In view of the above the joint compromise memo is considered.

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X. It is seen from the memo that all the parties to the litigation except Defendant No.1 which is under liquidation have signed the compromise memo.

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XI. On behalf of the applicant the Chief Manager is the signatory to the compromise memo. The Ld. Counsel for the parties submits that the memo is already acted upon. Hence the following:

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: - O R D E R - :

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The applicant bank had initially filed OA-79/2016 before DRT, Coimbatore for recovery of a sum of Rs.269,97,31,401/- along with interest and sought for recovery as against Defendants 1 to 7 jointly and severally along with other prayers.

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The memo filed today reveals that Defendant No-1 Company is facing liquidation.

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Defendants 2 and 3 have given OTS proposal which is sanctioned by the bank on 12.12.2023 upon two conditions. However a modified sanction letter of OTS is also issued by the bank on 14.3.2024. It was agreed there under that the bank to conduct E-Auction for the

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property having pari-passu charge with the SBI. It was also agreed that the sale proceed of the property to be adjusted towards out of court settlement (OCS) amount after sharing the proportionate amount to the SBI. The balance of OCS would be paid by the borrowers.

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It is submitted by the bank that defendants 2 and 3 have settled the amount agreed at Rs.20.26 crores and the delayed payment interest of Rs.80,500/-. The said amounts were paid on 14.3.2024 and 2.5.2024. With these payments, the bank confirms that the OTS amounts are settled in full. It is also undertaken by the bank that they would release all the title deeds in r/o all the unencumbered, unsold properties offered as securities within 10 days.

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It is also submitted that the bank had already issued the “No dues certificate” which copy is filed along with the Joint compromise memo.

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After hearing the ld Counsel on either side, the present TA stands disposed of by the following;

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: - O R D E R - :

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a) The TA-27/2023 (old No-OA-79/2016) filed by the applicant bank stands disposed of as settled outside the Tribunal.

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b) The parties are directed to abide by the terms of compromise reached and the compromise petition shall be the part and parcel of this final order.

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c) The applicant bank to release all the title deeds and the personal guarantees qua the unencumbered and unsold properties within 10 days from today.

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d) The court fees to the eligible extent as per the rules may be refunded to the applicant bank.

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e) Copy of this final order be communicated to the parties as per the rules.

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Sd/- (A.S.JAYACHANDRA) PRESIDING OFFICER DRT-I, CHENNAI

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(Dictated to Assistant who typed in the system, corrected, signed and pronounced in open court on this 14^th Day of May, 2024)

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Indian Overseas Bank v. Hi-Tech Mineral Industries Covai Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Hi-Tech Mineral Industries Covai Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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Parties & counsel

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