IMR METALLURGICAL RESOURCES Vs. HINDUSTAN NEWSPRINT

JUDGEMENT

(1.) This Court had passed an order on 23rd December, 2019 giving certain directions on the concerned person of the defendant no.1 in respect of an amount of Rs.93,35,580.00 which the defendant no.1 had invested in a fixed deposit with the State Bank of Travancore pursuant to the order dated 15th May, 2006 passed by the Court. By the said order the defendant no.1 was to invest the amount in any nationalized bank in a suitable interest bearing fixed deposit to be kept in the credit of the suit. The plaintiff was to be informed of this investment by the defendant no.1. The third direction contained in the order dated 23rd December, 2019 was on the defendant no.1 to ensure that the amount mentioned in the letter dated 7th July, 2006 of the defendant no.1 and stating that the amount invested was Rs.93,35,580.00 and any further amounts added to the aforesaid amount would have to be kept to the credit of the suit as directed by the earlier order dated 15th May, 2006. It was further directed that this amount, i.e. Rs.93 lakhs together with the further amounts was to be kept separate and distinct from the NCLT proceedings. The defendant no.1 was directed to furnish information to this effect to the plaintiff every three months.

(2.) These directions were required since an order of moratorium under Section 14 of the IBC had been passed by the NCLT on 28th November, 2019 on all further proceedings filed against the defendant no.1. A letter has now been produced on behalf of the defendants addressed by the Deputy General Manager of SBI to Mr. C.A. Vasudevan Navneeth, the Interim Resolution Professional (I.R.P.) appointed in the insolvency proceedings. The letter is dated 29th January, 2020 and is written by the Deputy General Manager of SBI with regard to the position of the fixed deposit receipts issued as per the directions of the Court. This letter is kept on record.

(3.) The letter contains a tabulation showing that the amounts put in by way of the deposit which has now appreciated to a total of Rs.2,58,26,679/- being the principal amount which will become Rs.2,76,18,575/- on reaching the maturity date. The letter also states that the State Bank of Travancore, Velloor Branch in which the defendant no.1 put in the amount, merged with SBI and is now called 'SBI, Velloor Branch'. The next fact is that the defendant no.1 made the deposits without informing the erstwhile State Bank of Travancore that the deposits were being made pursuant to directions of the Court. These deposits have apparently been renewed on a regular basis on subsequent maturity dates. The fact to note is that on 3rd October, 2013, the defendant pledged these deposits and availed an overdraft loan of Rs.1 crore, which was enhanced to Rs.1.50 crores on 2nd April, 2014 and then to Rs.1.60 crores on 30th September, 2014. However, since the interest was not serviced, the accounts of the defendants became NPA on 5th April, 2019 pursuant to which, recovery proceedings were initiated against the defendant. It is also stated that a suit was filed before DRT Emakulam and that the SBI submitted a claim in the insolvency proceedings for the cash credit accounts etc. All the above facts have been specifically stated in the letter of the SBI dated 29th January, 2020.