Bank of India v. Yadav Consultancy Services (P) Ltd. and Anr.
Case brief
What is this about?
Court Commissioner security charges after auction; liability of auction purchasers vs Certificate Holder Bank; Recovery Officer order dated 25.03.2009; DRT order dated 24.07.2008 finality, acquiescence and 'non est' finding reversed; DRT/DRAT jurisdiction under RDDBFI Act 1993 versus MSMEDF Council arbitration under MSMED Act 2006; lack of jurisdiction of MSMED Council; Section 34 and Section 37 Arbitration and Conciliation Act 1996 appeals; setting aside of award; refund and recovery of deposited amounts; Bank of India; Yadav Consultancy Services; interest at 24%; costs.
What did the court decide?
Appeal allowed; impugned judgment of the High Court set aside and consequently the award passed by the MSMEDF Council also set aside. The appellant Bank is free to recover Rs. 1,22,00,000/- withdrawn by the first respondent after adjusting the payments due up to 24.07.2008, and is permitted to withdraw Rs. 93,22,590/- along with accrued interest. Liberty granted to the first respondent to proceed against the auction purchasers (respondents No. 2 and 3) in accordance with law for charges towards security services payable after 24.07.2008. No order as to costs.