INDIAN BANK Vs. INDUSTRIAL RECONSTRUCTION BANK OF INDIA

JUDGEMENT

(1.) This application has been taken out by Industrial Reconstruction Bank of India (IRBI) with the following prayers :

(2.) The facts of the case briefly are as follows : Dwarka Industrial Development Pvt. Ltd. (hereinafter referred to as Dwarka) were lessees in respect of the premises No. 14A, Canal Street, Calcutta (hereinafter referred to as the said premises) and a factory at Sonarpur. The owners of the premises are Nigom Brothers. The said Dwarka owed sums of money to Industrial Reconstruction Bank of India (hereinafter referred to as the IRBI). The Nigom Brothers had granted long lease for a period of 99 years commencing from October 1, 1963.

(3.) The land and building and the machineries situated in the said premises and the factory were mortgaged to the IRBI and a charge was created in favour of the Indian Bank in respect of the current assets. On February 4, 1997, the IRBI filed an application for sale of the assets mortgaged. That application was filed under Section 40 of the Industrial Reconstruction Bank of India Act, 1984 (hereinafter referred to as the said Act). In that application, the Indian Bank was impleaded as a party. Thereafter, the Indian Bank had also filed proceedings before the Debt Recovery Tribunal for realisation of its outstanding dues. During the pendency of the said application, under Section 40 of the said Act by the IRBI, the workmen of Dwarka filed an application, inter alia, seeking a direction that the assets of Dwarka be sold to one Mr. Jatan Surana (hereinafter referred to as "Surana") or his nominee for a sum of Rs. 65 lakhs and out of that a sum of Rs. 26 lakhs be paid to them towards their dues.