AKILANDESHWARI MILLS PANJALAI ANNA THOZHILALAR SANGAM Vs. MANAGEMENT OF SREE AKILANDESHWARI MILLS PVT LTD

JUDGEMENT

(1.) THE petitioners have sought for issuance of a writ of certiorarified mandamus to quash the order dated 18.11.2009 passed by the second respondent and to direct the respondents 2 and 3 to issue tender and hold auction afresh for the sale of properties covered under the order dated 18.11.2009 after assessing the value of the entire properties including Plant, Machinery and other movable and immovable properties based on the current market value and to allow the petitioners to participate and to be present throughout the sale process.

(2.) THE petitioners are two Workers Union, employed in the first respondent Mill at Salem. THE United Bank of India extended financial facilities to the first respondent Company from 1989-1994 and the first respondent Company had mortgaged inter alia its immovable properties and hypothecated its plant and machinery lying at factory premises to the United Bank of India and due to failure to repay the the amount, the Bank initiated steps and issued notice dated 20.1.2007 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 to the first respondent Company and the United Bank of India by assignment deed, dated 26.3.2007, assigned and released all the financial assistance granted to the first respondent Company in favour of the second respondent Company in terms of Section 5 of SARFAESI Act. THEreafter the second respondent issued a fresh noitce, dated 6.8.2007, under Section 13(2) of the Act and it took symbolic possession of the secured immovable properties under Section 13(4) of the Act on 27.11.2007 and subsequently took actual possession on 25.8.2008 pursuant to an order passed under Section 14 of the Act. In the meanwhile, the first respondent Company was directed to be wound up and the Official Liquidator was appointed by Order of this Court, dated 28.10.2008, in C.P.No.141 of 1994 on the petition filed by one G.P.Economical Traders Private Limited. On coming to know the same, the second respondent moved the Company Court by filing applications in Company Application Nos.244 to 246 of 2009 in C.P.No.141 of 1994 seeking for impleading itself and for an injunction. THE Company Court, by its Order dated 1.4.2009, allowed the Applications and permitted the second respondent Company to sell the properties by involving the Official Liquidator in the sale process. THE second respondent, upon the involvement of the Official Liquidator, appointed approved Valuers to value the movable and immovable properties of the Company.

(3.) A telegram by a third party M/s.Rajendra Mills Limited was sent to the third respondent informing about the order of interim stay of auction obtained by it in respect of the first respondent's property, in S.A.No.229 of 2009 on the file of the Debts Recovey Tribunal-I, Chennai. Challenging the said order, the second respondent filed C.R.P.No.3549 of 2009 under Article 227 of the Constitution of India and this Court originally granted interim stay and allowed the revision by order dated 7.1.2010.