IDC OF ARISSA LTD Vs. SNEHADHARA INDUSTRIES LTD

JUDGEMENT

(1.) This application has been filed by IDC of Orissa Limited, inter alia, making a prayer to issue a direction to the Debts Recovery Tribunal, Cuttack, not to disburse the sale proceeds of the assets of M/s. Snehadhara Industries Ltd. (in short 'SIL') without releasing the statutory dues which the said company i.e. SIL is liable to pay and for a further direction to the Mining Authorities restraining them from taking any coercive action and from causing hindrance in the mining operation which is being carried on by IDC, on account of nonpayment of outstanding statutory dues payable by SIL until disposal of the winding up proceeding.

(2.) A counter affidavit to the said misc. case has been filed by the IDBI, at whose instance, the Original Application for recovery of its dues from SIL was filed before the DRT, Cuttack.

(3.) Mr. R. K. Rath, learned senior counsel appearing on behalf of the applicant in this misc. case contends that SIL was a Joint Venture Company of IDCOL in which IDCOL holds 11% shares worth Rs. 1.87 crores and also assigned raising rights in favour of SIL for operation of Lime Stone Mines located at Koraput District under an agreement. By virtue of the said agreement, SIL was to operate the mines and pay all Government dues like royalty, dead rent etc. Since the said company-SIL became sick, it has stopped mining operation with effect from 14-4-1999 without clearing Government dues amounting to Rs. 69,01,781/- as on December, 2004, as demanded by the Deputy Director, Mines, Koraput. The said company is also liable to pay an amount of Rs. 14,04,697/- to IDCOL towards agency fees. He further submits that in the meanwhile, at the instance of IDBI which is a secured creditor, a recovery proceeding was initiated before the Debts Recovery Tribunal, Cuttack and pursuant to a certificate of recovery granted under the Recovery of Debts due to Banks and Financial Institutions Act, the assets of SIL which were offered as collateral security were put to sale by the Recovery Officer, DRT, Cuttack and the sale has been made for Rs. 9.5 crores in favour of M/s. Tosali Cement (P) Ltd.. The further case of the applicant is that since the mining lease was going to be lapsed for non-operation, the IDCOL started mining operation through M/s. Tosalt Cement (P) Ltd. by virtue of the order of the Debts Recovery Tribunal and on entering into an agreement dated 30-8-2004. It has been alleged in the application that due to outstanding dues of the SIL, the mining authorities are threatening to stop mining operation.