The Registrar Vs Lkp Finance Limited

DEBTS RECOVERY TRIBUNAL - I CHENNAI, 7TH FLOOR, ADDITIONAL OFFICE BUILDING, NO.06 SHASHTRI BHAWAN, HADDOWS ROAD NUNGAMBAKKAM, CHENNAI 600006 REP. BY REGISTRAR DRT-II

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KARNATAKA.

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…APPELLANTS

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(BY SRI. KUMAR M.N. ADV.,)

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AND:

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LKP FINANCE LIMITED A COMPANY INCORPORATED UNDER

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THE COMPANIES ACT, 1956 NO.203, EMBASSY CENTRE NARIMAN POINT, MUMBAI 400021 REP. BY AUTHORIZED REPRESENTATIVE ABHILASH J.

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STATE BANK OF INDIA A BANKING CORPORATION CONSTITUTED UNDER THE STATE BANK OF INDIA ACT, 1955 (23 OF 1955 ) HAVING ITS CORPORATE CENTRE AT STATE BANK BHAVAN MADAME CAMA ROAD NARIMAN POINT, MUMBAI 400021 AND HAVING ITS INDUSTRIAL FINANCE BRANCH AT 61 RESIDENCY ROAD BENGALURU 560025.

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BANK OF BARODA A BODY CORPORATE UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDER TAKINGS) ACT 1970 (05 OF 1970) HAVING ITS HEAD OFFICE AT BARODA HOUSE, P B NO 506 MANDAVI VADODARA 396006 ACTING THROUGH ITS BRANCH OFFICE AT P O BOX NO.11745 SAMATA BUILDING CENTRAL BHOSALE MARG NARIMAN POINT, MUMBAI 400121.

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CORPORATION BANK A BODY CORPORATE UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDER TAKINGS) ACT 1970 (40 OF 1980) HAVING ITS CORPORATE OFFICE MANGALADEVI TEMPLE ROAD PANDESHWAR, MANGALORE 575001 AND HAVING ITS INDUSTRIAL FINANCE BRANCH AT RALLARAM MEMORIAL BUILDING

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1ST FLOOR, CSI COMPOUND MISSION ROAD, BENGALURU 560027 REPRESENTED BY ITS MANAGER.

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THE FEDERAL BANK LIMITED A COMPANY WITHIN THE MEANING OF THE COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT FEDERAL TOWERS, ALUVA 683101 KERALA AND HAVING ITS BRANCH OFFICE AT ST MARKS ROAD, 9 HALYCON COMPLEX ST MARKS ROAD, BANGALORE 560001 REPRESENTED BY ITS MANAGER.

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IDBI BANK LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 AND A BANKING COMPANY WITHIN THE MEANING OF THE BANKING REGULATION ACT 1949 HAVING ITS HEAD OFFICE AT IDBI TOWER, WTC COMPLEX CUFFE PARADE, MUMBAI 400005 MAHARASHTRA, INDIA AND ACTING THROUGH ITS BRANCH OFFICE AT CORPORATE BANKING GROUP FAMG, 9TH FLOOR IDBI TOWER, WTC COMPLEX CUFFE PARADE, COLABA MUMBAI 400005 REPRESENTED BY ITS MANAGER.

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INDIAN OVERSEAS BANK A BODY CORPORATE UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT 1970 HAVING ITS CENTRAL OFFICE AT 763 ANNA SALAI, CHENNAI 600002 AND ITS BRNACH OFFICE AT HARIKRIPA 26-A, S V ROAD SANTACRUZ (W) MUMBAI 400054.

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JAMMU AND KASHMIR BANK LIMITED A BANKING COMPANY INCORPORATED UNDER THE PROVISIONS OF THE JAMMU AND KASHMIR COMPANIES ACT (NO XI OF 1977 SAMVAT) HAVING ITS REGISTERED OFFICE AT CORPORATE HEADQUARTER MAULANA AZAD ROAD SRINAGAR, KASHMIR 190001 AND ITS BRANCH OFFICE SYED HOUSE 124, SV SARKAR MARG MAHIM (WEST), MUMBAI 400016 REPRESENTED BY ITS MANAGER.

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PUNJAB AND SIND BANK A BODY CORPORATE UNDER THE BANKING COMPANIES ACQUISITION AND TRANSFER OF UNDER TAKING ACT 1980 HAVING ITS HEAD OFFICE AT 21 RAJENDRA PLACE, NEW DELHI 110008 AND HAVING AMONGST OTHERS A BRANCH OFFICE AT J K SOMANI BUILDING, BRITSH HOTEL LANE FORT MUMBAI 400023.

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PUNJAB NATIONAL BANK A BODY CORPORATE UNDER THE BANKING COMPANIES ACQUISITION AND TRANSFER OF UNDERTAKING ACT 1970 (5 OF 1970) HAVING ITS HEAD OFFICE 7, BHIKAJI CAMA PLACE NEW DELHI 110607, ACTING THROUGH ITS LARGE CORPORATE BRANCH AT CENTENARY BUILDING 28 M G ROAD, BENGALURU 560001 REPRESENTED BY THE MANAGER.

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UCO BANK A BODY CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF

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UNDERTAKING) ACT 1970 AND HAVING ITS HEAD OFFICE 10 BTM SARANI KOLKATA 700001 WEST BENGAL, INDIA AND ITS BRANCH OFFICE 1ST FLOOR, 13/22, K G ROAD BANGALORE 560009 REPRESENTED BY ITS MANAGER.

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UNITED BANK OF INDIA A BODY CORPORATE UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT 1970 (5 OF 197), 11 HEMANTA BASU SARANI KOLKATA 700001 ACTING THROUGH ITS BRANCH OFFICE AT NO 40, K G ROAD, BANGALORE 560009.

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JM FINANCIAL ASSET RECONSTRUCTION CO PVT LTD HAVING ITS REGISTERED OFFICE AT 7TH FLOOR, ENERGY APPASAHEB MARATHE MARG, PRABHADEVI MUMBAI 400025.

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KINGFISHER AIRLINES LIMITED (UNDER LIQUIDATION) A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 AND HAVING ITS REGISTERED OFFICE AT U B TOWER, LEVEL 12, UB CITY 24 VITTAL MALLAYA ROAD, BENGALURU 560001 REPRESENTED BY OFFICIAL LIQUIDATOR.

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UNITED BREWERIES (HOLDING) LIMITED A PUBLIC COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 AND HAVING ITS REGISTERED OFFICE AT UB TOWER, LEVEL 12, UB CITY 24 VITTAL MALLAYA ROAD

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BENGALURU 560001 KARNATAKA INDIA.

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DR. VIJAY MALLYA SON OF LATE SRI VITTAL MALLYA RESIDING AT NO.3, VITTAL MALLYA ROAD BENGALURU 560001 KARNATAKA INDIA.

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KINGFISHER FINVEST (INDIA) LTD UB TOWER, LEVEL 12, UB CITY 24 VITTAL MALLYA ROAD, BANGALORE 560001 REPRESENTED BY MANAGING DIRECTOR.

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…RESPONDENTS

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(BY SRI. VEERENDRA PATIL, ADV., FOR R2 R1 SERVED)

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THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT, 1961 R/W RULE 27 OF THE WRIT PROCEEDINGS RULES 1977, PRAYING TO QUASH AND SET ASIDE THE FINAL ORDER DATED 14/12/2022 PASSED BY THE LEARNED SINGLE JUDGE OF THIS HON'BLE COURT IN WP NO.22719/2022. ALLOW THE WRIT APPEAL & ETC.

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THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL

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ORAL JUDGMENT

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(PER: HON'BLE MRS. JUSTICE ANU SIVARAMAN)

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This appeal is filed under Section 4 of the Karnataka

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High Court Act, 1961 read with Rule 27 of the Writ Proceedings Rules, 1997 seeking to set aside the impugned order dated 14.12.2022 passed by the learned Single Judge in W.P.No.22719/2022 (GM-RES).

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We have heard Sri.Kumar M.N., learned counsel

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appearing for the appellants and Sri.Veerendra Patil, learned counsel appearing for the respondent No.2.

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The learned Single Judge has recorded that the transfer of the petitioner’s case from the Debt Recovery Tribunal–II, Bengaluru, to the Debt Recovery Tribunal–I, Chennai, was contrary to the notification dated 04.10.2022 issued by the Ministry of Finance. The learned Single Judge has specifically noted that the said notification mandates transfer of only those cases involving a debt of more than Rs.100.00 crores. The learned Single Judge has further held

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that on the basis of the documents produced by the

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petitioner and the admission of the respondent–DSGI, that the loan sanctioned was Rs.71.00 crores and the outstanding debt was indisputably below Rs.100.00 crores. Consequently, the learned Single Judge has held that the action of the Tribunal in transferring the case of the petitioner to DRT-I, Chennai, by following the notification dated 04.10.2022 suffers from want of application of mind. Accordingly, the learned Single Judge has allowed the writ petition by quashing the Circular in Appeal No.8/2021 and held that DRT-II, Bengaluru, has the jurisdiction to try the appeal in accordance with law.

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Learned counsel appearing for the appellants submits that the judgment of the learned Single Judge proceeded on the mistaken assumption that the respondent No.1 was a debtor and had filed an application in the Debt Recovery Tribunal (for short, 'DRT' ) with regard to a debt amounting to less than Rs.100.00 Crores. It is submitted that this is not factually correct and that the O.A. which was pending before the Tribunal was with regard to recovery of an amount of Rs.62,03,35,03,879.42/- with interest. It is

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further submitted that recovery proceedings had been initiated for recovery of the said amount with interest. It is further submitted that respondent No.1 was neither a debtor nor a similarly situated as a debtor and was only an objector in the execution proceedings before the DRT. It is submitted that since the debt due was well in excess of Rs.100.00 Crores and in view of the notification dated 04.10.2022 of the Department of Financial Services, the jurisdiction in respect of all applications involving the debt amounting to Rs.100.00 Crores and above otherwise falling within the jurisdiction of the DRT at Bengaluru stood transferred to the DRT-I at Chennai. There was absolutely no error in the transfer. Respondent No.1, who was not a debtor, could not have challenged the transfer in terms of Annexures-A and B.

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Having considered the contentions advanced, we notice that it is not disputed that the O.A. had been filed for recovery of an amount of Rs.62,03,35,03,879.42/-. The respondent No.1 was not the debtor and was only an objector in the recovery proceedings before the Tribunal. In the above view of the matter, we are of the opinion that

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