IFCI LTD Vs. KOSHIKA TELECOM

JUDGEMENT

(1.) (Oral)

(2.) THE petitioner is a public financial institution which granted loan to the respondent-company for setting up of the telecom business. THE two directors of the respondent-company also gave personal guarantees. To secure the loan, the tower and other moveable assets owned by the respondent-company were hypothecated with the petitioner-Corporation.

(3.) THE Recovery Officer thereafter proceeded to sell the properties of the respondent-Company in auction and since only one claim, which was yet to be verified, was received by the OL and no other claim had been received either from workmen or from secured or unsecured creditors, the petitioner filed an application before the Recovery Officer praying for the proceeds realized from sale of assets to be made over to the petitioner-Corporation. THE total realization is stated to be about 12 crores and thus a large amount of the debt of the petitioner-Corporation remained unsatisfied. This application was allowed by the Recovery Officer on 22.02.2010. While disposing of the application, the Recovery Officer directed the petitioner to furnish an undertaking of a competent officer that in future if any eligible claims in excess of the amount available with the OL is received by the OL, requisite amount as per law shall be remitted by petitioner-Corporation to the OL. This is so because other than the amount realized from the moveable assets, the petitioner-Corporation had to stand in queue pari passu with other unsecured creditors and the workmen's liability would naturally take precedence over it. THE Recovery Officer further directed that a sum of Rs.1 crore shall be kept with the OL on a provisional basis for defraying of various expenses.