L M DEVARE Vs. BHUPEN C DALAL

JUDGEMENT

(1.) This miscellaneous application is filed by the Official Liquidator of Bank of Karad (In Liquidation). It seeks an order against the 1st respondent to pay a sum of Rs.14,31,00,092/- towards balance said to be outstanding towards interest in an overdraft facility availed of by the 1st respondent at the material time from the Bank of Karad (In Liquidation), (hereinafter referred to as "the Bank"). In the alternative, it seeks a direction against the 1st respondent to prove his claim to ownership over certain securities within a time to be fixed by this court and a direction against the 2nd respondent-Custodian to pay to the applicant the amount to the extent of the value of the securities over which the 1 st respondent claims title from and out of the amounts deposited with the Custodian by the applicant.

(2.) A brief description of the parties will be appropriate.

(3.) The 1St respondent, it transpires, had filed Miscellaneous Application No.85 of 2012 in this court, claiming a sum of Rs.1,71,96,700/- being the amount of face-value of certain securities lying with the bank in liquidation. The applicant contended that the Books of Accounts and records of the Bank of Karad were found to be containing several inaccuracies. The bank did not maintain records, which could provide particulars of the securities received and delivered to the bank through various parties. That despite appointing professionals, including the Chartered Accountants, to conduct an investigation, it has not been possible to establish, beyond doubt, the ownership of the securities as vesting in the 1st respondent. In Miscellaneous Application No.85 of 2012, an order came to be passed by this court on 14th November 2014, directing the applicant to deposit redemption amount in respect of various securities with the 2nd respondent-the Custodian, to be placed in a separate account.