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TMI Blog2009 (1) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... sets of the company available with the official liquidator, as prayed for in the petition, for statutory deductions. - C. A. NO. 721 OF 2007 IN C. P. NO. 111 OF 1999 - - - Dated:- 14-1-2009 - K. KANNAN, J. G. S. Anand for the Applicant. Puneet Kansal for the Official Liquidator. JUDGMENT K. Kannan, J. The Bank of India which is a secured creditor of the assets of the company in liquidation seeks for a direction to forthwith remit the sale proceeds of the assets of the company for an amount of Rs. 2 crores with accrued interest thereon. Subsequent to the filing of the petition, there has been a recovery certificate issued by the Debts Recovery Tribunal-II, Chandigarh in O. A. No. 367 of 2006 in favour of the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, remedies or costs. This would mean that even if a person has a discretion to do something the said discretion has to be exercised within the limits allowed by positive rules of law. The literal (sic legal) meaning of the word 'discretion' therefore, unmistakably avoids untrammeled or uncontrolled power and more positively points out at there being a positive control of some of judicial principles." 3. The reference to this observation is wholly off the mark. The said decision came out of a writ petition filed by a company before the High Court challenging the selection of bidders for undertaking the restructuring and modernisation of the Delhi and Mumbai airports respectively. The reference to the expression "discretion" was in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank is exclusive and the Act requires the Tribunal alone to decide application for recovery of debts. There is no dual jurisdiction in this regard and a company court cannot again entertain an adjudication whether the bank would have resort to any other remedy. If such an exercise is undertaken, it will make meaningless the constitution of an exclusive Tribunal under the RDB Act and the primacy of the Tribunal that the hon'ble Supreme Court adverted to in the above decision. 5. Under these circumstances, the claim of the bank in the application is well merited and the official liquidator is directed to pay out of the sale proceeds of assets of the company available with the official liquidator, as prayed for in the petition, for st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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