Allowed

M/s. Edelweiss Asset Reconstruction Company Limited, v. M/s. Coromandel Pharmaceuticals Ltd. (In Liqn.)

Telangana HC24 Oct 2014COMPA/1189/2014

Case brief

AI extract

What is this about?

This order allowed a company application to substitute Edelweiss NBCC Ltd. for the Industrial Investment Bank of India in winding-up proceedings, directing the applicant to submit the assignment deed for verification prior to dividend distribution.

What did the court decide?

Application allowed; applicant substituted in proceedings; directed to furnish original Deed of Assignment for verification before dividend disbursement.

M/s. Edelweiss Asset Reconstruction Company Limited… — Company and Corporate | Telangana HC (2014)

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THE HON’BLE SRI JUSTICE A.RAJASHEKER REDDY

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COMPANY APPLICATION NO.1189 OF 2014

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O R D E R :

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This application is filed to allow the applicant herein to be substituted in the place of Industrial Investment Bank of India (IIBI) as respondent in the connected RCC No.13 of 1998.

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It is submitted that the applicant is a company incorporated under the provisions of the Companies Act, 1956 and was issued a Certificate of Incorporation by the Registrar of Companies, Maharashtra on 05.10.2007 having registered office at Edelweiss House, Off C.S.T. Road, Kalina, Mumbai – 400 098. The applicant was a Securitization and Reconstruction Company within the meaning of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest At, 2002 and was granted a Certificate of Registration by the Reserve Bank of India on 16.10.2009 to carry on business of Securitization or Asset Reconstruction under Section 3 of SARFAESI Act.

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This Court by order dated 22.04.1999 in R.C.C.No.13 of 1998 ordered winding up of the respondent company- M/s Coromandel Pharmaceuticals Ltd. with a direction to the Official Liquidator to take charge of all the assets and effects of the company. The Industrial Investment Bank of India has since entered into an assignment agreement on 25.0-6.2012 with the applicant and agreed to and in pursuance thereof, assigned all its right, title, interests and benefit in respect of the claim against respondent company, together with security interest therein to the applicant who has agreed to take over the said claim. Hence this application.

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The consent affidavit is filed by the Industrial Investment Bank of

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India Ltd., stating that it has no objection for the petitioner company to be substituted in its place in all the proceedings in R.C.C No.13 of 1998.

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The Official Liquidator also filed report stating that in response to the invitation of claims, IIBI has submitted their claim and claimed an amount of Rs.1,91,17,510/- against the company. In the process of adjudication of claims, the Official Liquidator had adjudicated their claim and admitted an amount of Rs.1,69,71,309/- as Secured Debt and also admitted an amount of Rs.21,46,201/- as unsecured debt aggregating to total amount of Rs.1,91,17,510/-. Though the claims were admitted as secured debt against the charged assets of the company, the Official Liquidator has not realized any amount towards sale of charged assets of the company, against which charges were created by the secured creditors. Therefore, all the secured debt admitted by the Official Liquidator has been treated as unsecured debt for appropriation of available funds of the company and filed C.A.No.978 of 2014 in R.C.C.No.13 of 1998 before this Court for declaration of dividend to all the creditors of the company, wherein the Official Liquidator has proposed an amount of Rs.9,66,680/- to IIBI and the same was ordered by this Court vide order dated 16.09.2014. The Official Liquidator further submitted that in case the company application is allowed, this Court may be directed the applicant to furnish the original Deed of Assignment dated 25.06.2012 for verification of the Official Liquidator at the time of disbursement of dividend.

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Having regard to the facts and circumstances of the case, this application is allowed permitting the applicant to be substituted in the place of the Industrial Investment Bank of India as respondent in all the proceedings connected with R.C.C.No.13 of 1998 and that the applicant is also directed to furnish the original Deed of Assignment dated 25.06.2012 for verification of the Official Liquidator at the time of

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disbursement of dividend.

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_______________________________ A.RAJASHEKER REDDY, J 24.10.2014 kvrm

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THE HON’BLE SRI JUSTICE A.RAJASHEKER REDDY

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COMPANY APPLICATION NO.1189 OF 2014

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DATE: 24.10.2014

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kvrm