Disposed

Salem Textile Limited v. Government of INdia

Madras HC21 Apr 2021WP/9940/2021

Case brief

AI extract

What is this about?

This writ petition challenges the non-response to an Offer of Settlement Scheme (OTS) proposal by the respondent financial institution. The petitioner company, facing recovery proceedings and previously declared sick, sought a mandatory direction to consider its OTS offer submitted on 12.01.2021. Disposing of the petition, the Court directed the third respondent to consider the offer, issue notice

What did the court decide?

Direction to the third respondent to consider the OTS offer dated 12.01.2021, issue requisite notices, and pass orders on merits within four weeks after affording an opportunity of personal or virtual

Salem Textile Limited Vs Government of INdia — Company and Corporate | Madras HC (2021)

¶1

IN THE HIGH COURT OF JUDICATURE AT MADRAS

¶2

DATED: 21.04.2021

¶3

CORAM

¶4

THE HONOURABLE Mrs.JUSTICE PUSHPA SATHYANARAYANA

¶5

W.P.No.9940 of 2021

¶6

Salem Textile Limited, Registered Office, Sellipalayam, Attur -636 108, Salem District, Rep by its Authorised Personnel, P.Rajaram ...Petitioner Vs 1. Government of India, Rep by its Secretary to Government, Ministry of Finance, New Delhi - 110 001.

¶7

The Regional Director, Reserve Bank of India, Regional Office, No.16, Rajaji Salai, Fort Glacis, Chennai 600 001. 3. The Deputy General Manager, Industrial Financial Corporation of India Ltd., Continental Chambers, No.142, Nungambakkam High Road, Chennai 600 034 ...Respondents

¶8

Prayer: Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing the third respondent to consider and pass orders on the petitioner's OTS offer / representation dated 12.01.2021, within a period stipulated by this Court

¶9

For Petitioner : Mr.R.Prabhakaran

¶10

ORDER

¶11

The petitioner has filed this Writ Petition seeking a direction to the respondents to consider and pass orders on the petitioner's OTS offer / representation dated 12.01.2021, within a time fame.

¶12

https://hcservices.ecourts.gov.in/hcservices/

¶13

The petitioner is a private limited company, incorporated under the Indian Companies Act, 1956 in the year 1967, engaged in the business of spinning yarn. It is stated that one of the Directors of the Company had created a mortgage by depositing title deeds in favour of ICICI Bank, in respect of the property situated at Appamasamudram Village, Attur Taluk, Salem District together with all buildings and structures thereon and all plant and machinery. The said mortgage was created on first charges basis to ICICI Bank, IDBI, IFCI/third respondent herein and IRBI. Thereafter, the Board for Industrial and Financial Re-construction (BIFR) declared the petitioner's Company as sick, by order dated 30.08.2005. The financial institutions had initiated recovery proceedings before the Debt Recovery Tribunal-I, Chennai and subsequently, an Order of Restraint was passed on 30.01.2017. While so, the petitioner had offered OTS proposal to all the financial institutions, which was also accepted by them. Though the petitioner submitted OTS proposals dated 23.11.2020 and 12.01.2021 to the third respondent, there is no reply till date. Hence, this Writ Petition has been filed seeking for the relief stated supra.

¶14

Heard the learned counsel for the petitioner and perused the materials available on record.

¶15

Considering the facts and circumstances of the case and the submissions made on either side, this Court, without expressing any opinion on the merits of the case, directs the third respondent to consider the petitioner's OTS Offer/representation dated 12.01.2021 and pass appropriate orders, on merits and in accordance with law, after issuing notice to the petitioner and the persons interested in this regard and by affording them an opportunity of personal hearing or virtual hearing, within a period of four weeks from the date of receipt of a copy of this order.

¶16

With the above directions, the Writ Petition is disposed of. No costs.

¶17

Sd/Assistant Registrar(CS III)

¶18

//True Copy//

¶19

Sub Assistant Registrar

¶20

srn

¶21

https://hcservices.ecourts.gov.in/hcservices/

¶22

To
1. The Secretary to Government,
Government of India,
Ministry of Finance,
New Delhi - 110 001.
2. The Regional Director,
Reserve Bank of India,
Regional Office,
No.16, Rajaji Salai,
Fort Glacis, Chennai 600 001.
3. The Deputy General Manager,
Industrial Financial Corporation of India Ltd.,
Continental Chambers,
No.142, Nungambakkam High Road,
Chennai 600 034
+1cc to Mr.R.Prabhakaran, Advocate, S.R.No.24778
W.P.No.9940 of 2021
GPL(CO)
KKV/02/06/2021

¶23

https://hcservices.ecourts.gov.in/hcservices/

Salem Textile Limited v. Government of INdia

Case brief

What is this about?

What did the court decide?

Salem Textile Limited v. Government of INdia

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

Case details

Similar cases

A.Abuthahir Vs The Secretary to Government

P.Maheshkumar Vs The District Collector

Karthikeyan Sundaresan Vs The Registrar of Companies

Anna Makkal Nala Sangam Vs The District Collector

Y.Allah Baksh Vs The Chairman

D.Rajendran Vs State of Tamil Nadu