SAND PLAST INDIA LTD Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The writ petitioner, M/s.Sand Plast (India) Ltd. has challenged the order dated 24.1.2011 passed by the Debt Recovery Appellate Tribunal in Misc.Appeal No.137/2010, in which Appeal order dated 9.3.2010 passed by the Debt Recovery Tribunal was challenged.

(2.) Order dated 9.3.2010, is an interim order passed by the Debt Recovery Tribunal in an appeal filed by the petitioner under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (hereinafter referred to as Act No.54 of 2002 ), in which appeal challenge is to action initiated by PNB as per notice dated 11.1.2008 to proceed under Section 13 of Act No.54 of 2002. By and under the order dated 9.3.2010 the Debt Recovery Tribunal has prima facie recorded that the recovery of the dues by the two secured creditors before it i.e. PNB and HUDCO approximates about '70 crores and that even the petitioner was admitting liability approximating about '10 crores. It has thus been directed that the petitioner would pay '5 crores each to PNB and HUDCO by 31 st March 2010 and thereafter would deposit '50 lakhs per month with PNB and HUDCO as a condition of the stay of the notices issued by PNB under Section 13 of Act No.54 of 2002. The order in appeal has resulted in partial success to the petitioner. The condition of '50 lakhs per month being deposited with PNB and HUDCO has been waived. The requirement to deposit '5 crores each with PNB and HUDCO has been maintained.

(3.) Relevant facts are that the petitioner company availed a term loan from HUDCO in sum of about '3.95 crores in the year 1990 and availed a credit of '1.09 crores from PNB in the year 1992. Right from the inception, the petitioner company defaulted and by 31.3.1994 debts were classified in the category of Non Performing Assets . On 22.4.1994 PNB recalled the credit and by said date amount due to PNB was approximately '2.45 crores. HUDCO recalled the credit on 5.9.1994 and by said date the amount due to it was approximately '5.88 crores.