DEUTSCHE TRUSTEE COMPANY LTD Vs. TULIP TELECOM LTD.

JUDGEMENT

(1.) This application is for directions to the Official Liquidator to issue instructions to Axis Bank to release in favour of the applicant 98.181879% of the amount received from Madhya Pradesh Excise Department (MPED) lying in Escrow account No. 910020037830786 on following grounds:-

(2.) On 22.05.2017 this Court directed to verify if the contract was complete, and since it is now complete the amount lying therein needs to be apportioned. The applicant in paras 5 and 7 of an affidavit filed in compliance of an order dated 22.05.2017 writes as under:-

(3.) However, the counsels for the secured creditors argue the State Government was never a part of teaming agreement executed between the respondent and the applicant herein. It is argued the contract dated 03.11.2009 was executed between the Government of Madhya Pradesh acting through its Excise Department and the respondent company and it was only the respondent company which was appointed as the agency for providing key solutions. In any case the State Government was liable to the pay only to respondent company and not to the applicant herein, hence, payments belong to the respondent company so any internal arrangement viz., teaming agreements, between the parties would come in the way of secured creditors to claim the amount lying in Escrow Account. It was argued the applicant being a unsecured creditors would have to wait and it cannot seek priority on the basis of internal arrangements. Rather the teaming agreement is challenged by secured creditors to be a fabricated document, created to usurp major chunk of the money lying in the escrow account.