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TMI Blog1994 (5) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant which is a stranger to the consideration respecting transactions between the Andhra Bank Financial Services Ltd. and the Fairgrowth Financial Services Ltd., cannot seek to enforce the obligations thereunder. The remedy of the appellant against its debtor which itself is not a notified person, lies in the ordinary courts of the land. This reasoning is not shown to be unsound. - I.A. NO. 1 OF 1993 IN CIVIL APPEAL NO. 5151 OF 1993 - - - Dated:- 6-5-1994 - M.N. VENKATACHALIAH AND S. MOHAN, JJ. S. Ramaswamy Iyengar, K.V. Viswanathan and K.V. Venkataraman for the Appellant. Ashok Desai, Ashwin Pandya, R.N. Karanjawala, Ms. Suruchi Agarwal and Ms. Manik Karanjawala for the Respondent. ORDER Venkatacha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Fairgrowth Financial Services Ltd. However, on the stand of the Andhra Bank Financial Services Ltd., that its funds were, in turn, locked up with and retained by the said Fairgrowth Financial Services Ltd., the appellant moved the Special Court for a direction that the securities of the Fairgrowth Financial Services Ltd., in the hands of the Custodian be directed to be sold and the proceeds disposed of in favour of the Andhra Bank Financial Services Ltd., and that out of the sums so found payable, the sum of Rs. 54 crores which was then due to the appellant together with accrued interest, be appropriated and applied for the discharge of the appellant's claims. 4. The Special Court by its order dated 26-8-1993, now under appeal, de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. For one thing, the Special Court itself was not treated to any such argument. Secondly, no factual foundations necessary to compel an inference necessary to enable a piercing of the veil were laid before the Court. We do not, therefore, propose to examine this proposition purely as a matter of law. The fact remains that the 'notified person' under section 3(2) was the Fairgrowth Financial Services Ltd., and no privity between that 'notified person' and the appellant having been established, the view taken by the Special Court as to jurisdiction seems to us to be unexceptionable on the facts and the circumstances of this case. 7. Indeed, section 11 exclusively empowers the Special Court to give directions in the matter of the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proceeds on the existence of obligations inter se between the parties based on contrac- tual, statutory or other legally recognised rights and that such vinculumjuris is absent as between the appellant, on the one hand, and the Fairgrowth Financial Services Ltd., on the other. What is further implicit is that the appellant which is a stranger to the consideration respecting transactions between the Andhra Bank Financial Services Ltd. and the Fairgrowth Financial Services Ltd., cannot seek to enforce the obligations thereunder. The remedy of the appellant against its debtor which itself is not a notified person, lies in the ordinary courts of the land. This reasoning is not shown to be unsound. 9. The appeal is, accordingly, dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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