STATE BANK OF INDIA Vs. KINGFISHER AIRLINES LTD.

JUDGEMENT

(1.) State Bank of India and 13 other banks have filed the instant special leave petitions challenging the order dated 04.03.2016 passed by the High Court of Karnataka at Bengaluru in Writ Petition Nos.12191-12194 of 2016 refusing to pass any ad interim order against Respondent Nos.3, 10 and 11. According to the petitioners-banks they had individually advanced to Respondent No.1 loans of thousands of crores of rupees; that by Master Debts Recast Agreement dated 21.10.2010 and other related documents the existing loans were restructured and treated as a single facility; and that Respondent Nos.2 and 3 executed a corporate guarantee dated 21.12.2010 and a personal guarantee dated 21.12.2010 respectively, guaranteeing repayment of the entire amount due. Further, since the above accounts were classified as non-performing assets, the petitioners-banks filed OA No.766 of 2013 against Respondent Nos.1 to 9 before Debt Recovery Tribunal, Bengaluru (for short "DRT Bengaluru), inter alia seeking recovery of Rs.6203,35,03,879.32 (Rupees Six Thousand Two Hundred and Three Crores Thirty Five Lakhs Three thousand Eight Hundred and Seventy Nine and Paise Thirty Two only) from Respondent Nos.1 to 4. It is the case of the petitioners-banks that despite applications having been filed requiring Respondent Nos.1 to 4 to disclose details of their assets on oath, said respondents never disclosed the assets and instead, said respondents secretly tried to dispose of their assets with an intention to defeat the recovery proceedings pending before DRT Bengaluru.

(2.) According to the petitioners-banks, on 25.02.2016 Respondent Nos.10 and 11 disclosed to London Stock Exchange and Bombay Stock Exchange respectively that Respondent No.3 had resigned as Chairman of Respondent No.11; that Respondent No.10 would pay to Respondent No.3 a sum of US$ 75 million; that out of said amount a sum of US$ 40 million would be paid immediately; and that Respondent No.3 had made a statement to the press confirming said transaction and had stated that he intended to settle in London. In these circumstances, the petitioners-banks moved four interlocutory applications before DRT Bengaluru on 02.03.2016 seeking interim prayers:

(3.) It is the case of the petitioners-banks that DRT Bengaluru heard arguments only with respect to the Garnishee Application on 02.03.2016 and posted the matters for orders on 04.03.2016 but failed to consider the other applications. Aggrieved by such non-consideration of the interlocutory applications by DRT Bengaluru, despite the urgency and the enormous amounts involved in the matter, the petitioners-banks moved the High Court of Karnataka by filing Writ Petition Nos.12191-12194 of 2016 seeking appropriate directions to DRT Bengaluru to hear and dispose of the applications moved by the petitioners-banks on 02.03.2016 expeditiously. Since the High Court refused to pass any ad interim direction, the aforesaid special leave petitions were filed in this Court.