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TMI Blog2007 (10) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... balance-sheet of the writ petitioners which they annexed to the stay application, the proviso to section 15 of the SICA was clearly attracted, inasmuch as they invoked the full amount of the secured loan of the debtor. Therefore, we find no reason to interfere with the order passed by the learned single judge. Thus mandamus-appeal, thus, is devoid of any substance and is dismissed accordingly. - MAT NO. 1594 OF 2007 - - - Dated:- 12-10-2007 - BHASKAR BHATTACHARYA, ACTG., AND RUDRENDRA NATH BANERJEE, JJ. P.K. Mallick, Bhaskar Sen, S. Talukdar and P.K. Sarogi for the Petitioner. Ashok Banerjee, Victor Dutta, K.K. Banerjee, L.K. Chatterjee and Sanjoy Modal for the Respondent. JUDGMENT Bhaskar Bhattacharya, Actg., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings before the BIFR under section 15 of the SICA and by order dated 14 June, 2006, the BIFR appointed the Central Bank of India as the operating agency of the appellants. On 27 November, 2006, the BIFR issued notice upon all the parties thereby fixing the hearing of the application on 18 December, 2006. 4. In the meantime, on 13 December, 2006, the Bank of India on the basis of the earlier notice issued under section 13(2) of the Securitisation Act took action in terms of section 13(4) of the Securitisation Act and, consequently, the BIFR on 18 December, 2006, passed an order holding that the proceedings under the SICA had abated in view of action taken under section 13(4) of the Securitisation Act at the instance of the secure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e secured creditors without any sufficient reason exercised power under section 13(4) of the Securitisation Act. Mr. Mallick further contends that once a secured creditor has become an operating agency in terms of the provision of the SICA, it cannot exercise its power under section 13(4) of the Securitisation Act. He, therefore, prays for setting aside the order impugned in the writ application and for restraining the secured creditors from taking any further steps in terms of section 13(4) of the Securitisation Act. 9. Mr. Chatterjee and Mr. Banerjee, the learned senior advocates appearing on behalf of the secured creditors vehemently opposed those contentions advanced by Mr. Mallick and submitted that there is no legal bar in exercis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we find that the legislature has specifically incorporated the proviso to section 15 by permitting a secured creditor to invoke section 13(4) during the continuance of proceeding before the BIFR and, therefore, invocation of provision contained in section 13(4) of the Securitisation Act cannot be branded as mala fide. We are of the view that merely because the BIFR had appointed the secured creditor as the operating agency, such fact cannot take away the right of the secured creditors to invoke the provision contained, in section 13(4) of the Securitisation Act, inasmuch as, the Securitisation Act has the overriding effect upon the provision contained in the SICA. 12. In the case before us, huge amount of money is due and payable an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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