HDFC BANK LIMITED Vs. RECOVERY OFFICER, BENGALURU

JUDGEMENT

(1.) Sri.Udaya Holla, learned Senior counsel for Sri.Vasudevan H.N., learned counsel for the petitioner.

(2.) In this petition under Articles 226 and 227 of the Constitution of India, the petitioner Bank inter alia seeks a writ of prohibition restraining the respondent No.1 not to take any coercive action against the petitioner till the petitioner approaches the Company Court for suitable relief. The petitioner also seeks a writ of certiorari for quashment of order dated 11.06.2018 by which respondent No.1 has issued an order informing the petitioner that its assets will be attached. The petitioner also seeks permission to deposit 2,97,103 shares of United Sprits Ltd. and 47,53,881 shares of Mangalore Chemicals and Fertilizers Ltd. with the Official Liquidator or to any other person which may be directed by this Court. The petitioner also seeks a writ of prohibition restraining the respondent No.1 from attaching the assets of the petitioner. In order to appreciate the petitioner's grievance, few relevant facts need mention which are stated hereinafter.

(3.) The petitioner is a body corporate incorporated under the Companies Act, 1956 (hereinafter referred to as 'the Act' for short). The State Bank of India initiated recovery proceedings before the Debts Recovery Tribunal, Bengaluru against M/s. United Breweries (Holding) Ltd. (hereinafter referred to as 'the UBHL' for short). The Debt Recovery Tribunal allowed the original application on 19.01.2017 and issued a recovery certificate. Thereafter, the Financial Institutions have initiated the proceedings for recovery before the Recovery Officer. The UBHL was ordered to be wound up by this Court by an order dated 07.02.2017 and an Official Liquidator has been appointed under Section 449 of the Act. It is the case of the petitioner that it had sanctioned and disbursed over draft facilities for a sum of Rs. 50 cores only, to UBHL in two installments namely, Rs. 32 crores vide sanction letter dated 08.10.2010 and Rs. 18 crores vide sanction letter dated 03.12.2012. The aforesaid amount was secured by UBHL in favour of the petitioner by executing several documents. The aforesaid amount was also secured by pledging the shares of UBHL with the petitioner. Accordingly, a memorandum relating to pledge of shares, stocks and securities creating pledge in respect of 2,97,103 shares of United Sprits Ltd. and 47,53,881 shares of Mangalore Chemicals and Fertilizers Ltd. was executed in favour of the petitioner Bank.