ICICI LIMITED Vs. VEENA TEXTILES LIMITED

JUDGEMENT

(1.) THIS is a Notice of Motion taken out by the plaintiffs. The plaintiffs- ICICI Ltd. has filed the suit in their capacity as Trustees of the Debenture-holders for recovery of amounts that are due to the debenture-holders from the defendants. By this Notice of Motion, the plaintiffs seek appointment of Court Receiver in relation to the securities.

(2.) THE learned Counsel appearing for the defendants submits that this suit filed by the Financial Institutions is not maintainable before this Court in view of the provisions of section 18 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The learned Counsel submits that the amount of which decree is claimed by the plaintiffs is the amount due to the Bank and the decree is claimed by the plaintiffs in their own favour. The learned Counsel submits that the amount that is claimed in the suit is a debt within the meaning of the Act due to the plaintiffs from the defendants. Therefore, the jurisdiction of this Court to hear the suit is barred.

(3.) THE learned Counsel appearing for the plaintiffs, on the other hand, submits that the suit has not been filed by the plaintiffs- Financial Institution for recovery of the money that is due to the plaintiffs from the defendants. The money is due from the defendants to the debenture-holders for whom the plaintiffs are acting as a Trustee pursuant to the agreement between the parties. The learned Counsel, therefore, submits that in view of the provisions of section 17 of the Act and the definition of the term debt found in the Act, the suit would be maintainable before this Court. The learned Counsel submits that there is a claim made in the plaint for a decree for the amount of remuneration payable to the plaintiffs in its capacity for acting as Trustee. The learned Counsel submits that the amount is Rs. 51,329/- and, therefore, the jurisdiction of this Court to entertain the suit even by Financial Institutions claiming a decree in the amount of less than Rs. 10 lakhs is maintainable before this Court.