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TMI Blog2005 (2) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... said order. In the present company petition the application was moved being No. 233 of 2004 on behalf of various creditors and small fixed deposit holders inter alia seeking relief that in place of winding up of the company it is in the interest of small fixed deposit holders that a scheme should be framed for return of the money to the small fixed deposit holders. It was contended that the small fixed deposit holders have put in their hard earned money with a view to secure their future in these kind of financial companies because at the relevant time they were offering an attractive rate of interest. It was further contended that if the company is wound up then no persons are likely to receive any amount. However, it is in the interest of justice that small fixed deposit holders be protected by this court by framing a scheme and that payment to small fixed deposit holders should be made under the scheme. This application was heard by the learned single judge (Khanwilkar, J) on 12-3-2004 and by consent of the various parties an order came to be passed appointing a committee constituting of retired judge of this court V.R. Datar, J. as its Chairman and retired officer S.C. Malho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum of Rs. 20 lakhs can be made available per month for repayment of the small fixed deposit holders and the said committee is of the opinion that all depositors upto Rs. 5,000 can be paid off gradually and certain guidelines have been given by the committee in para -5 of the said report. It is also proposed that after the category of depositors up to Rs. 5,000 is paid, the special committee will prepare another scheme for payment to the depositors up to Rs.10,000. This report dated 3-8-2004 seeks an approval from this court to implement the said scheme with a view to pay off the said small fixed deposit holders. By another report dated 24-7-2004 the committee is seeking direction for initiating the contempt proceedings against one Mr. Baleshwar Prasad Gupta, advocate, for initiating the proceedings before the Judicial Magistrate First Class, Patna in spite of the said order of this court dated 12-4-2004 and 16-7-2004 staying proceedings against the company and the committee. By the third report the committee is seeking direction that insofar as one of the properties of the company is concerned namely the office premises admeasuring 5000 sq.ft. situated at Laxmi Finance and Leasin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed in a proceedings initiated by them then the lease rent could never be recovered and consequently therefore the scheme must fail. I am of the opinion that having constituted the committee for a particular purpose by the various earlier orders passed by this court it is not appropriate for me to frustrate the said object by rejecting the scheme as proposed by the committee in their report dated 3-8-2004. I am also further of the opinion that it is now well known fact that various small fixed deposit investors have invested a large amount of money on inducements by the finance companies as well as various other companies for high returns. It is, this gullible investors who have staked their life earnings in these companies and therefore their interest must be pro- tected by the court. It is undoubtedly true that the protection of their interest would obviously sacrifice the interest of secured creditors to a great extent. However, I am of the opinion that this court cannot ignore the plight of the small investors whose life savings are invested by way of small fixed deposits with these companies. Even the Company Law Board and RBI has passed orders in the present case to protec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its monthly operating expenses, 37.5 per cent will be used to repay the deposit holders upto Rs. 5,000 and the balance 25 per cent will be used to repay the secured creditors of the company." 3. The Committee shall decide the basis on which the above-mentioned amount will be disbursed to the secured creditors of the company, trying as far as possible to make the disbursements proportionate to the amounts at which the dues of each secured creditor have been settled by the Committee. 4. The Committee to negotiate with the secured creditors of the Company for a one time settlement of their dues. All the secured creditors appearing before this Hon ble court agree to co-operate with and appear before the Committee for this purpose. 5. Once the said depositors are fully paid, the Committee shall repay the depositors whose deposit exceed Rs. 5,000 but are below Rs. 10,000. 6. All parties shall be at liberty to apply for further directions in this regard, as and when necessary." 6. This takes me to the next report dated 31-8-2004. By this report the committee is seeking the disposal of one of the office premises of the respondent company. The said premises admeasuring 5000 sq. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I am informed by Mr. Kambhatta, the learned counsel appearing for the committee that there is an interim injunction order operative in one of the proceedings of the DRT which has been initiated by the fixed deposit holders and Dhanlaxmi Bank. The said order has been passed in Application Nos. 615 of 2001 and 11 of 2002 by the DRT, Mumbai. I empower the committee to move necessary application before the DRT for vacating the said interim orders passed in the said application being 615 of 2001 and 11 of 2002. If such an application is made then the DRT is directed to consider the same on merits and in accordance with law. The committee will be entitled to dispose of the said premises subject to the order passed by the DRT in the application to be initiated by the said committee. Thus I dispose of the second report of the committee dated 31-8-2004 with the aforesaid directions. 7. This leads me to the last report dated 24-7-2004. By this report the committee is seeking the initiation of a contempt proceedings against the Advocate, Mr. Baleshwar Prasad Gupta. 8. Some of the material facts of the report are as under: As indicated above by order dated 12-4-2004 and 16-7-2004 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and a scheme is in formulation for recovery of dues, then to file a proceeding and even include the members of the said committee amounts to direct interference with the administration of justice by this court. I accordingly direct the Registrar General to issue notice of contempt to the said Advocate, Baleshwar Prasad Gupta at Patna under section 2( b ) read with section 15 of the Contempt of Court Act and also in exercise of power under Article 215 of the Constitution of India calling upon the said Advocate, Baleshwar Prasad Gupta to show cause as to why action for contempt should not be taken against him. With the aforesaid directions I dispose of the said report dated 24-7-2004 filed by the committee. 9. This leads me to the application made by the Federal Bank for vacating the stay granted to the various proceedings in different courts initiated by the secured creditors. This application is supported by various creditors. I have heard the counsels for the various secured creditors. None of the counsels have come forward before me with an alternate scheme under which any payment can be effected to the fixed deposit holders. By my present order I have in modification of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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