$~23.
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4603/2017 and CM APPL. 20104-20105/2017
BHARAT PETROLEUM CORPORATION LTD ..... Petitioner
Through: Mr. J.P. Sengh, Senior Advocate with
Mr. Sanjay Verma, Mr. Sanjeev Singh and Ms.
Manisha Mehta, Advocates
versus
IFCI LTD ..... Respondent
Through: Mr. R.P. Agrawal, Advocate with
Ms. Priyadarshini Verma, Advocate
CORAM:
HON'BLE MS. JUSTICE HIMA KOHLI
HON'BLE MS. JUSTICE SANGITA DHINGRA SEHGAL
ORDER
% 24.05.2017 CAV 523/2017
1. Counsel for the caveator/respondent enters appearance and states that he has received a complete set of the paper book.
2. The caveat stands discharged.
W.P.(C) 4603/2017 and CM APPL. 20104-20105/2017
1. The petitioner/BPCL is aggrieved by the order dated 11.05.2017 passed by the learned DRAT, whereunder it has been directed to deposit in the Tribunal, the entire money received by it from the sale of an immovable property, mortgaged with the respondent/IFCI.
2. Mr. J.P. Sengh, learned Senior Advocate appearing for the petitioner/BPCL submits that vide order dated 24.12.2012 passed by the WP(C)4603/2017 Page 1 of 3 Recovery Officer, DRT-III, an application filed by the respondent/IFCI for directions to the petitioner/BPCL to deposit the sale proceeds of Rs.4,90,01,000/- received from the sale of the mortgaged property situated in Dadar and Nagar Haveli was allowed, while dismissing the objections filed by the petitioner/BPCL to the effect that it cannot be called upon to pay any amount to the respondent/IFCL for the reason that the sale price was received after a decree was passed in favour of BPCL in a civil suit instituted by it against the borrower, which decree was duly executed before the Executing Court at Dadar Haveli.
3. Aggrieved by the said order dated 24.12.2012, the petitioner/BPCL had filed an appeal under Section 30 of the RDDBFI Act, 1993, which was also dismissed by DRT-I on the ground that the respondent is a secured creditor and upon sale of the secured asset, it has the first right over the amount received by the petitioner/BPCL, which is an unsecured creditor. The aforesaid order has been assailed by the petitioner/BPCL before the learned DRAT, wherein the impugned order dated 11.05.2017 has been passed.
4. Mr. J.P. Sengh, learned Senior Advocate appearing for the petitioner/BPCL states that while passing the orders dated 24.12.2012 and 17.02.2016, the plea of the petitioner/BPCL that the DRT is not vested with the jurisdiction to entertain the matter, was not considered and same was the position before the learned DRAT. He states that the learned DRAT cannot insist that the petitioner/BPCL deposit the entire amount received from the sale of the secured asset for entertaining the appeal, as that would cause great prejudice to the petitioner/BPCL who has taken legal recourse to recover the said amount by prosecuting the Judgment Debtor, in the WP(C)4603/2017 Page 2 of 3 execution proceedings wherein the respondent did not appear, despite issuance of public notice.
5. We have enquired from learned counsel for the petitioner/BPCL if it is ready and willing to deposit 50% of the amount recovered in the execution proceedings. He states on instructions that without prejudice to the right of the petitioner/BPCL, it is willing to offer a bank guarantee for a sum of Rs.2,50,00,000/-.
6. We think that the interest of the respondent/IFCI will be sufficiently secured if the petitioner/BPCL is permitted to furnish a bank guarantee for a sum of Rs.2,50,00,000/-, as a pre-condition for the DRAT to hear its appeal.
7. Accordingly, the impugned order dated 11.05.2017 is modified to the extent that the petitioner/BPCL is granted four weeks' time to submit a bank guarantee before the Registrar, DRAT. If the same is in order, it shall be accepted. The said bank guarantee shall be kept alive by the petitioner during the pendency of the appeal and the same shall abide by the decision taken by the DRAT.
8. The petition is disposed of alongwith the pending applications.
DASTI to the parties under the signatures of the Court Master.
HIMA KOHLI, J SANGITA DHINGRA SEHGAL, J MAY 24, 2017 rkb/ap/sk WP(C)4603/2017 Page 3 of 3