PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED Vs. PUNJAB NATIONAL FERTILIZERS AND CHEMICALS LIMITED IN

JUDGEMENT

(1.) This order shall dispose of Company Application Nos. 258 and 260 of 2005 filed by the Punjab State industrial Development Corporation Limited under Section 442, 429-A, of the Companies Act, 1956 (hereinafter to be referred as "the Act") read with Rule 9 of the Companies Court Rules, 1959, and Sections 141 and 145 of the Indian Contract Act, 1872, for an order to, declare all the liabilities of the Punjab National Fertilizers and Chemicals Limited (In Liquidation) to the Industrial Development Bank of India in C.A. No. 258 of 2005 and to the ICICI Bank Limited in C.A. No. 260 of 2005 stand transferred to the applicant as secured creditor.

(2.) The applicant is a State Government Undertaking. The company in liquidation was a joint sector company promoted by the applicant. The said company in liquidation has availed financial assistance from various financial institutions and banks. The applicant has issued corporate guarantees in favour of the banks for due repayment of the advances taken by the Company in liquidation from the said financial institutions.

(3.) Since there was default committed by the company in liquidation, proceedings were initiated against the said company by banks and the financial institutions under the Recovery of Debts Due to Banks arid Financial Institutions Act, 1993. The applicant has entered into a settlement with the banks/financial institutions and paid a sum of Rs. 22 crores in C.A. No. 258 of 2005 and a sum of Rs. 7,15,95,000/- in C.A. No. 260 of 2005 in full and final settlement.