IFCI LTD Vs. KOSHIKA TELECOM

JUDGEMENT

(1.) THE Appellant in the present appeal seeks to challenge and impugn the order dated 1.8.2013 passed by the learned Single Judge in Company Application being C.A. No. 1073/2012 in Company Petition No. 75/2002 in the matter of "Lord Krishna Bank Limited Vs. Koshika Telecom Limited", whereby the Appellant was directed to deposit the sale proceeds with interest realized from Koshika Telecom Limited with the Official Liquidator.

(2.) THE facts pertinent to the present Appeal are that the Appellant, M/s IFCI Limited is a public financial institution which had provided loan and granted other facilities to the Respondent/Company to enable it to set up its telecom business. The two Directors of the Company also gave personal guarantees. Apart from the aforesaid, the microwave tower and other movable assets owned by the Respondent/Company were hypothecated with the Appellant. Since the Respondent and the guarantors failed to repay the loan amount, the Appellant filed an Original Application before the concerned Debt Recovery Tribunal being OA No. 148/2002 for recovery of the debts due to the Appellant. The aforesaid Original Application was allowed on 20th April, 2006 and a decree was passed against the Respondent Company and its guarantors for a sum of Rs. 233,73,92,900.17 alongwith the pendent lite and future interest at the rate of 10% per annum from 19.07.2002 till realization with costs of Rs. 1.5 lakhs. A recovery certificate was drawn up in the aforesaid terms and recovery proceedings initiated before the Recovery Officer attached to the concerned Debt Recovery Tribunal. The Appellant filed applications for attachment and sale of towers and the land on which the towers were affixed belonging to the Respondent Company. The said applications were allowed by the Recovery Officer vide order dated 8.12.2007 and the aforesaid immovable assets were ordered to be attached and sold for realization of the dues of the Appellant.

(3.) IT subsequently transpired that the Official Liquidator on or about 11th May, 2012 filed an application under Rule 9 of the Companies (Court) Rules, 1959, inter alia, praying that the Appellant Corporation may be directed to deposit the entire sale proceeds with interest to the Official Liquidator for deciding pro rata share on the claims received as per the provisions of Sections 529 and 530 of the Companies Act, 1956. It was stated in the application that pursuant to the orders passed by the Division Bench of this Court on 6.12.2010, an advertisement for inviting claims from secured/unsecured creditors and workmen had been published in the newspapers on 14.11.2011. Pursuant to the said publication, certain claims had been received and examined by the Official Liquidator, details whereof were set out in paragraph 5 of the application. With respect to the sale proceeds lying with the Appellant, it was stated that despite several letters issued to the Appellant to remit the same, no reply or response had been received till date.