Disposed

Industrial Development Bank of India v. Official Liquidator

Kerala HC11 Nov 2022Co.Appl./192/1994

Case brief

AI extract

What is this about?

The applicant sought leave under the Companies Act, 1956 to continue a suit and appoint a receiver against an entity in liquidation. The court held that since the matter is pending before the Debts Recovery Tribunal, the applicant must approach that tribunal instead, and disposed of the application with liberty to do so.

What did the court decide?

Application disposed; liberty granted to approach the Debts Recovery Tribunal.

Industrial Development Bank of India Vs Official… — Company and Corporate | Kerala HC (2022)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM (Original Jurisdiction)

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In the matter of the Companies Act, 1956 and

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In the matter of Vanjinad Leathers Ltd. (in liquidation)

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Co.Appl. No.192/1994 in C.P. No.17/1990

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Before:

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The Honourable Mr.Justice N.NAGARESH

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Friday, the 11^th day of November, 2022/20^th Karthika, 1944

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Petitioner:-

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Industrial Development Bank of India, a Corporation Established under the Industrial Development Bank of India Act, 1964 (Act No.18 of 1964) and having its Head Office at IDBI Tower, Cuffe Parade, Bombay – 400 005.

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Counter Petitioners:-

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Official Liquidator attached to the High court of Kerala, appointed by Liquidator of Vanjinad Leathers Ltd. (in liquidation) having his office at Carmel Buildings, Banerji Road, Cochin – 682 018.

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The Industrial Finance Corporation of India Ltd., a public Company incorporated under the Companies Act, 1956 (Act No.1 of 1956) and having its registered office at Bank of Baroda Building, 16, sansad Marg, New Delhi and a Regional Office at Earnest House, Backbay Reclamation, Nariman Point, Bombay – 400 021.

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The Industrial Credit and Investment Corporation of India Ltd., a Public Company incorporated under the Indian Companies Act, 1913 (Act No.7 of 1913) and having its Registered office at 163, Backbay Reclamation, Bombay – 400 020.

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Application under Sections 446, 453 and 537 of the Companies Act, 1956 read with Rule 19 of the Company Court Rules filed by the applicant above named praying for an order that:-

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Contd..........2

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-2-

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(a) grant leave to the Petitioner under Section 446(1) of the Companies Act, 1956 to continue suit No.2556 of 1994 for recovery of the amounts due to it against Vanjinad Leaters Ltd. (in liquidation) represented by Counter petitioner No.1 in the Hon'ble High Court of Judicature at Bombay.

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(b) grant leave to the petitioner under Sections 453 and 537 of the Companies Act, 1956 to take steps for appointment of Receiver of the properties mortgaged and hypothecated to the petitioner, by Vanjinad Leathers Ltd. (in Liquidation) authorising the said Receiver to take possession of the said properties from the Counter petitioner and to sell the same to recover the dues of the petitioner herein;

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(d) grant such other reliefs which the petitioner may pray for and which this Hon'ble Court may deem fit and proper in the interest of justice.

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This Application coming on for orders on this day upon hearing Sri.M.Balagovindan and L.Mohanan, Advocates for the applicant and Sri.K.Moni, Standing Counsel for the Official Liquidator, the Court passed the following:-

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N.NAGARESH, J

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---------------------------------------------

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Co.Appln.No.192 of 1994 in Company Petition No.17 of 1990

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-----------------------------------------------------Dated this the 11^th day of November, 2022.

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O R D E R

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The Industrial Development Bank of India having its

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Head Office at IDBI Tower, Cuffe Parade, Bombay-400005 is the petitioner in this Company Application No.192 of 1994. The petitioner seeks leave under Section 446(1) of the Companies Act, 1956 to continue Suit No.2556 of 1994 for recovery of the amounts due to the petitioner against Vanjinad Leathers Limited (in liquidation) represented by the 1^st counter petitioner-Official Liquidator.

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When this matter came up for hearing today, the

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Standing Counsel for the Official Liquidator submitted that

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the entire matter is pending consideration before the Debts Recovery Tribunal, Ernakulam.

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In view of the above, this Court is of the view that the petitioner has to approach the Debts Recovery Tribunal for any relief against the assets of the Company in liquidation.

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Co.Appln.No.192 of 1994 in Company Petition No.17 of 1990 4

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Therefore, Company Application No.192 of 1994 is disposed of granting liberty to the petitioner to approach the Debts Recovery Tribunal, if the petitioner is so advised.

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Sd/-

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N.NAGARESH, JUDGE

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smm

Industrial Development Bank of India v. Official Liquidator

Case brief

What is this about?

What did the court decide?

Industrial Development Bank of India v. Official Liquidator

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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