VINEDALE DISTILLERIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this Writ Petition under Article 226 and 227 of the Constitution of india, the petitioner has sought a mandamus for respondent no. 3, i. e. , Dena bank to accept the payment of Rs. 2. 5 crores as one time settlement, in terms of the RBI guidelines and to close the account of the petitioner. The other direction sought is that Dena Bank should be directed to disclose, by way of an affidavit, list of OTS proposals disposed of by it after the publication of various circulars of RBI for OTS and to set aside the notice dated 16th August, 2005 issued by Dena Bank under the Securitisation and Reconstruction of financial Assets and Enforcement of Security Interest Act, 2002 (for short "the sarfaesi Act ).

(2.) THE facts in nutshell relevant for the purpose of deciding this petition are that the Dena Bank, Banks Street Hyderabad had given various credit facilities to the petitioner company by way of cash credit, term loan etc demand loan, funded interest loan etc. The total amount (along with interest) payable by the petitioner company to the respondent no. 3 in July, 1995 was rs. 1,97,16,250. 26. This loan was secured by mortgaging of immovable properties and movable assets of the petitioner. The immovable properties of the petitioner consisted of 54,450 square feet of area in Karla Taluka, District-Pune and 62 acres 36 guntas of land on which distillery of the petitioner was situated at village Premavati Peth, West Taluka, District-Hyderabad, Andhra pradesh. In 1989, the petitioner had become a sick company and it moved BIFR, to be declared so. On 24th September, 1991, BIFR sanctioned a scheme for rehabilitation of the company and wanted Dena Bank to fund the scheme of rehabilitation by giving further funds to the tune of Rs. 2. 72 crores to the company. However, an internal management tussle going on in the company between aggarwal Group and Chabaria Group. Looking into the previous record of the petitioner company and possibility of non recovery of its funds, Dena Bank refused to give further credits of 2. 72 crores to the company. Several Court cases between the different groups fighting among themselves for management of company came to be filed at Hyderabad Courts and Mumbai High Court. In 1994, the Hon'ble Supreme Court transferred all pending suits between different groups to Delhi High Court. Therefore, this Writ Petition has also been filed in Delhi high Court.

(3.) BY an order dated 13th February, 1995 in FAO No. 265 of 1994, a division Bench of this Court passed an order appointing Aggarwal Group as joint receiver of the company. The matter was taken up to Supreme Court. The Hon'ble supreme Court modified the order and observed that instead of joint receiver, aggarwal Group shall act as Court Commissioner.