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TMI Blog2018 (1) TMI 1746X X X X Extracts X X X X X X X X Extracts X X X X ..... y or the bank if the property is not sold or the bank does not appropriate the proceeds to the extent of its claim. It is possible that certain interlocutory orders take the character of a final order and certain aspects of the suit are resolved even before the trial is commenced or any decree passed. Merely because the bank is not a party to the arbitration agreement should not deter the Court in finding a solution for the parties, subject to the non-party to the arbitration agreement having no reservation in participating in the proceedings. The bank in the present case does not see any prejudice in the asset being directed to be sold and the bank retaining the sale proceeds with the right to appropriate the quantum of its claim, from out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ville Gardens property has been secured in favour of the United Bank of India for certain credit facilities availed in course of the family business, the value of the property is well in excess of the claim of the bank. The bank has issued a notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, but no steps have yet been taken under Section 13(4) thereof. 3. The disputes between the parties appear to be covered by an arbitration agreement. It is the appellant s case that the excess proceeds from the sale of the Mandeville Gardens property, which has been secured in favour of the bank, is to be distributed among the brothers and a large portion thereof is to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossible that certain interlocutory orders take the character of a final order and certain aspects of the suit are resolved even before the trial is commenced or any decree passed. Merely because the bank is not a party to the arbitration agreement should not deter the Court in finding a solution for the parties, subject to the non-party to the arbitration agreement having no reservation in participating in the proceedings. 7. The bank in the present case does not see any prejudice in the asset being directed to be sold and the bank retaining the sale proceeds with the right to appropriate the quantum of its claim, from out of such proceeds, subject to any negotiation that the bank may enter into with the debtors. As far as the balance sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 crore towards its claim, the bank will enjoy no lien over the balance sale proceeds transferred to the independent account in the names of the special officers. The bank s right to the sum of Rs. 4.55 crore will be in accordance with law and subject to any negotiation that may be initiated by the debtors. 10. The special officers will create recurring short-term fixed deposits to retain the balance sale proceeds, which will abide by the result of the arbitral reference or, in the event arbitration is not allowed, the result of any suit that the appellant herein may file within four weeks of the request under Section 11 of the Act of 1996 being declined. In default of the suit being filed within the time permitted, it will be open to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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