IDBI TRUSTEESHIP SERVICES LTD. Vs. CHATTAR INDUSTRIES LTD.

JUDGEMENT

(1.) This is an appeal against the order and judgment of the learned Company Judge rejecting the appellant's application to be treated as a first charge holder/secured creditor pari-passu with respondent No.2-Industrial Development Bank of India, respondent No.3-Industrial Finance Corporation of India Ltd. and respondent No.4-Haryana Financial Corporation. The learned Judge dismissed the application on the ground that the appellant's charge had not been registered under section 125 of the Companies Act, 1956 (for short 'the Act').

(2.) For the purpose of this appeal, we will proceed on the basis that in the event of a charge not being registered under section 125 of the Act, it would be void against the liquidator and other creditors. We have come to the conclusion that the appellant's charge was infact registered under section 125 of the Act.

(3.) The appellant-IDBI Trusteeship Services Ltd. is referred to in the proceedings and in the impugned order as ITSL. The appellant is a CAPP No. 22 of 2014 in CA No. 547 of 2009 2 Debenture Trustee of which the beneficiaries are four nationalized insurance companies, namely, Life Insurance Corporation of India; General Insurance Corporation of India; New India Assurance Co. Ltd. and Oriental Insurance Company Ltd. A Trustee Agreement dated 31.11.1995 was entered into between the first respondent which is a company in liquidation and respondent No.2-IDBI. The appellant is the successor-in-interest inter-alia to the benefit of the trustee agreement. Apparently, in view of section 13A of the SEBI (Debenture Trustees) (Amendment) Regulations, 2000, respondent No.2 was prohibited from acting as Trustees and the Debenture trustee business of respondent No.2 was, therefore, transferred to the appellant.