ROCKLINE CONSTRUCTION COMPANY Vs. DOHA BANK

JUDGEMENT

(1.) The three Writ Petitions revolve around same set of facts and, therefore, are disposed of by this common judgment. Writ Petition No.8572 of 2014 is filed by the auction purchaser - M/s. Rockline Construction Company and the credit holder bank, the guarantor - M/s. Lodestar Slotted Angels Limited and the intervener Mahendra Kawad are the Respondents in the said Writ Petition. Writ Petition No.10703 of 2014 is filed by M/s. Lodestar Slotted Angels Limited. Writ Petition No.9078 of 2014 is filed by the creditor bank. In order to appreciate the controversy involved, we deem it appropriate to glean the facts from Writ Petition No.8572 of 2014.

(2.) Exactly two decades back, the Doha Bank QSC, formerly known as HSBC Bank, Oman, SAOG instituted two suits against Mrugank Investment Limited and one Geekay Exim Limited which came to be transferred to the DRT-II, Mumbai and numbered as O.A. Nos.1144/1999 and 1139/1999, for recovery of its dues and enforcement of the securities. The bank was accoutered with Recovery Certificate No.99/2002 and 100/2002 dated 30th April 2002 by the Debt Recovery Tribunal, Mumbai in the aforesaid Original Applications. Lodestar Slotted Angels Limited, being owner of a piece and parcel of land admeasuring 5635 sq. yards (equivalent to 4961 sq.m) bearing Survey No.36, Hissa No.52 and CTS No.689 at Village, Marol, Mumbai had mortgaged the property and acted as a Guarantor to the credit availed by the Investment company.

(3.) Recovery Proceedings No.100 of 2002 before the Recovery Officer in the Debt Recovery Tribunal-II at Mumbai resulted into issuance of a public notice dated 26 th February 2007 for recovery of sum of Rs. 16,45,032,827.46 + interest @ 15 % per annum till its realization from the certificate debtor, the same being recoverable together with interest, cost, charges as per the recovery certificate. As on the date of sale i.e. 29 th March 2007, the due under recovery certificate was in the sum of Rs. 35,27,83,613.16 inclusive of cost and interest thereon. The public notice declared that some third party is in possession of the building as tenant on the subject land which has been sold by the Special Court to one M/s. Gama Construction (Pvt.) Ltd and the proposed sale was made subject to encumbrances of M/s.Oman International Bank on land only. The property was valued by the Recovery Officer at Rs. 4,57,72,405/- and the reserve price was fixed at Rs. 5 crore whereas Rs. 1 crore was stipulated as earnest money deposit.