BOMBAY DYEING Vs. UNIVERSAL WOLLEN MILLS

JUDGEMENT

(1.) The Petitioner Company has an Arbitration Award in its favour whereunder Respondent No.1 ( Universal Woolen Mills) is liable to pay a sum of Rs.7,73,40,710/- along with interest thereon @ 24% p.a. and Rs.5 Lacs as costs. Pursuant to the Order dated 27th September, 2019, the Bailif, who went to attach the immovable property of Respondent No. 1, has submitted his report stating that he has not attached the immovable property of Respondent No. 1 since the Punjab National Bank has taken nitin symbolic possession of the same.

(2.) The learned Advocate appearing for the Respondents is present before me along with Mr.Sahil Singhania and Mr. Pankaj Singhania - CA of Mr.Anil Singhania. They have informed the Court that an amount of Rs.25 Crores (approximately) is payable to the Punjab National Bank, and the property being factory land and building along with plant and machinery at 242, Industrial Area, ad-measuring 1742.22 sq. yards and building thereon bearing MC No. B-XXIII-818, Plot No. 242, Industrial Area, A.R.K. Road, Ludhiana bearing Wasika No. 4831 dated 30 th June, 1983 (the said property), is mortgaged in favour of Punjab National Bank.

(3.) The learned Advocate appearing for the Petitioner on instructions states that except for taking symbolic possession of the said property, Punjab National Bank is not taking any steps to sell the said property. It is also stated that save and except the said property, the Company has no other assets. If they proceed to sell the said property, the surplus proceeds can be ofered to the Petitioner in satisfaction of the Award or part thereof. Instead the bank has allowed the Directors to run the mill and continue to make money.