9911796707
Advanced Search 
TMI Blog2005 (11) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... irection 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 non-payment of outstanding statutory dues payable by SIL until disposal of the winding up proceeding. 2. A counter affidavit to the said misc. case 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 per cent shares worth Rs. 1.87 crores and also assigned raising rights in favour of SIL for operation of Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Companies Act, all taxes, revenue and rent payable by SIL to the State Government shall have priority over all other dues and as such, are required to be satisfied first from the sale proceeds collected by the Recovery Officer, Debts Recovery Tribunal, Cuttack. 5. Mr. Mishra, Learned Counsel appearing for the IDBI relying on the counter affidavit filed by it to the Misc. Case petition, urged that the IDBI being a secured creditor standing outside the winding up proceeding and having obtained the certificate of recovery from the DRT, Cuttack, is entitled to the sale proceeds of the assets of SIL, which were hypothecated/mortgaged/charged in favour of IDBI. He further contended that the dues of the secured creditor and workmen are to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to sub-section (1) of section 529 pari passu with such dues, shall be paid in priority to all other debts. (2) The debts payable under clause (a ) and clause (b) of sub-section (1) shall be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions." 7. It is, therefore, clear from a bare reading of the above provisions that the payment of dues of the State Government or IDCOL is subject to the provisions of section 529A which is relating to the dues of the workmen and secured creditors. In the above premises, the contention of Mr. Rath, Learned Counsel appearing on behalf of the applicant that the dues of the Government which SIL was liable to pay, should get a priority, is not acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Corpn. [2003] 43 SCL 297 (SC) was tested in the case of Rajasthan Financial Corpn. v. Official Liquidator 2005 (6) Supreme 709. The Supreme Court clarified that there is no inconsistency between the said two decisions and concluded as follows : "18. In the light of the discussion as above, we think it proper to sum up the legal position thus : (i )A Debt Recovery Tribunal acting under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 would be entitled to order the sale and to sell the properties of the debtor, even if a company-in-liquidation, through its Recovery Officer but only after notice to the Official Liquidator or the liquidator appointed by the Company Court and after hearing him. (ii)A District Court en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed to intervene in the matter including the purchaser M/s. Tosali Cement (P.) Ltd. However, no order has been passed for winding up of the company and no Liquidator has been appointed till date. In the meanwhile, IDBI standing outside the winding up proceeding, initiated recovery proceeding before the Debts Recovery Tribunal and after obtaining a certificate recovery of the dues has taken steps for execution of the said certificate. Subsequent thereto the Recovery Officer has put the assets of the company which was offered as security for the loan advanced by the IDBI, to sale and M/s. Tosali Cement (P.) Ltd. has purchased the same in an auction. The consideration money amounting to Rs. 9.5 crores is with the Debts Recovery Tribunal, Cutt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
