Bloom Farms Vs Logical Agri Business India (P) Ltd. — Madras HC (2025) — LawSathi Research

Bloom Farms Vs Logical Agri Business India (P) Ltd. — Madras HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Appeal disposed of by consent, without prejudice to the rights and contentions of the parties, on terms: (a) Indian Overseas Bank, Thondamuthur Branch, Coimbatore to issue a certificate confirming the mortgage of items 2 to 7; (b) discharge certificates not to be issued without leave of the Principal District Judge, Namakkal in Commercial Original Suit No.2 of 2023; (c) surplus sale proceeds over the bank's dues to be deposited promptly to the credit of that suit; (d) appellant's statement of owning no other property taken as an undertaking to the Court; (e) modifications only through application to the Principal District Judge, Namakkal; no order as to costs; interim application closed; no observation made on merits.

Issue for consideration

Whether the order of attachment dated 24.01.2025 passed in I.A.No.2 of 2023 in C.O.S.No.2 of 2023 by the Principal District Court, Namakkal, challenged under Section 13(1-A) of the Commercial Courts Act, 2015 read with Order 43 Rule 1 CPC, should stand or be disturbed. +1 more

Court's answer

The appeal was disposed of by a consent order passed without prejudice to the rights and contentions of the parties.

Ratio / Principle

Since items 2 to 7 are mortgaged to Indian Overseas Bank, Thondamuthur Branch, Coimbatore, the bank will issue a certificate confirming that the said properties are mortgaged with it.

Key takeaways

If the mortgage of all or any of the properties is discharged, the discharge certificate shall not be issued without the leave of the Court of the Principal District Judge, Namakkal, in Commercial Original Suit No.2 of 2023.ratio¶22
If any mortgaged property is sold, any surplus between the sale proceeds and the amount due to the bank is to be deposited promptly in the Court of the Principal District Judge, Namakkal, to the credit of Commercial Original Suit No.2 of 2023.ratio¶23
The appellant's statement that it has no property other than items 2 to 7 referred to in the order dated 22.11.2024 is taken as an undertaking to this Court.

Detailed headnote1 paragraphs

High Court of Madras (K.R.Shriram, CJ and Mohammed Shaffiq, J.; judgment delivered by the Chief Justice) disposed of CMA No.877 of 2025 (with C.M.P.No.7219 of 2025) by consent and without prejudice, on an appeal under Section 13(1-A) of the Commercial Courts Act, 2015 read with Order 43 Rule 1 CPC against an attachment order dated 24.01.2025 passed in I.A.No.2 of 2023 in C.O.S.No.2 of 2023 by the Principal District Court, Namakkal. Terms: Indian Overseas Bank, Thondamuthur Branch, Coimbatore to certify the mortgage over items 2 to 7; discharge certificates only with the leave of the Principal District Judge, Namakkal in the suit; surplus sale proceeds over bank dues to be deposited promptly to the credit of the suit; appellant's statement that it owns no property beyond items 2 to 7 (per order dated 22.11.2024) taken as an undertaking; modifications only by application to the Principal District Judge, Namakkal. The Court expressly made no observation on the merits; no costs; interim application closed.

CMA No.877 of 2025

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 24.03.2025

CORAM

THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE

AND

THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ

CMA No.877 of 2025 and C.M.P.No.7219 of 2025

M/s.Bloom Farms Represented by its Proprietor, S.Sakthivel .. Appellant

-vs-

Logical Agri Business India (P) Ltd., Represented by its Managing Director, Valsan, Door No.8/423, Trichy Main Road, Nagarajapuram Village, Vasanthapuram Post, Namakkal Town, Namakkal Taluk. .. Respondent

Prayer: Appeal filed under Section 13(1-A) of Commercial Courts Act, 2015 read with Order 43 Rule 1 of Code of Civil Procedure, against the order of attachment dated 24.01.2025 passed in I.A.No.2 of 2023 in C.O.S.No.2 of 2023 on the file of Principal District Court, Namakkal.

For Appellant : Mr.S.Saravanakumar For Respondent : Mr.Prem Kumar M for Mr.S.Senthil

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CMA No.877 of 2025

JUDGMENT

(Judgment of the Court was delivered by the Hon'ble Chief Justice)

After the appeal was heard, following order, by consent, without prejudice to rights and contentions of the parties, is passed:

a) In view of the fact that the properties

mentioned in items 2 to 7 are all mortgaged to Indian Overseas Bank, Thondamuthur Branch, Coimbatore, the bank will issue a certificate, confirming that the said properties are mortgaged with it;

b) If the mortgage is discharged of all the properties or any of the property, the discharge certificate shall not be issued without the leave of the Court of the Principal District Judge, Namakkal, in Commercial Original Suit No.2 of 2023;

c) If any of the mortgaged property is sold and there is a surplus between the sale proceeds and what is due to the bank, the surplus will be deposited promptly in the Court of the Principal District Judge, Namakkal to the credit of Commercial Original Suit

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CMA No.877 of 2025

No.2 of 2023;

d) Appellant's statement that they have no property other than what is mentioned in items 2 to 7 referred to in the order dated 22.11.2024 is taken as an undertaking to this Court; and

e) If the above order as regards the mortgaged property etc. has to be modified, the parties may apply to the Principal District Judge, Namakkal for modification.

Appeal is disposed of. There shall be no order as to costs.

Consequently, interim application stands closed.

We clarify that we have not made any observation on the merits of the matter or orders passed thereunder.

(K.R.SHRIRAM, CJ.) (MOHAMMED SHAFFIQ, J.) 24.03.2025 Index : Yes/No Neutral Citation : Yes/No

mrn

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CMA No.877 of 2025

The Hon'ble Chief Justice and Mohammed Shaffiq, J.

(mrn)

To The Principal District Court, Namakkal

CMA No.877 of 2025 and C.M.P.No.7219 of 2025

24.03.2025

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