THE HON'BLE THE CHIEF JUSTICE SATISH CHANDRA SHARMA
AND
THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI
WRIT APPEAL No.880 of 2005
JUDGMENT: (Per the Hon'ble the Chief Justice Satish Chandra Sharma)
The present writ appeal is arising out of order dated 09.03.2005
passed in W.P.No.9624 of 1999.
The facts of the case reveal that a writ petition was preferred by the
Union of India being aggrieved by an order dated 01.05.1997 passed in
CMA.No.43 of 1994 by the District Judge, Warangal, and the order dated
16.01.1982 passed in CMA.No.41 of 1980 was also under consideration
before the learned Single Judge.
The facts of the case further reveal that the Azam Jahi Mills
Limited became a sick unit and was taken over by the Government of
India keeping in view the provisions as contained under the Industries
(Development and Regulation) Act, 1951 on 30.04.1971 and later on it
was nationalised keeping in view the provisions of Sick Textile
undertakings (Nationalisation) Act, 1974 (for short, "the Act"). The
Central Bank of India has granted financial assistance to the Azam Jahi
Mills Limited and in the light of Section 23 of the Act, a claim was made
by the Bank before the Commissioner of Payments. The Commissioner
has allowed the claim directing payment of principal amount. However,
interest was not paid. Keeping in view sub-section (7) of Section 23 of
the Act, the claimant-Central Bank of India has approached the Principal
Civil Court of original jurisdiction i.e., Warangal by filing a CMA.
The disputed facts of the case reveal that Union of India was not
impleaded as respondent and the Union of India came up before this
Court by filing a writ petition i.e., W.P.No.7143 of 1985 and this Court 2 has held that Union of India is a necessary party. It is true that the parties are directed to appear before the District Judge, Warangal on 23.04.1990, but the fact reveals that the Central Bank of India has not made any application for impleadment of Union of India before the District Judge, Warangal, as evident from the cause title of the order passed by the District Judge, Warangal, in the matter. The District Judge, Warangal, has held that in spite of notice, the Union of India has not appeared and again an order was passed on 01.05.1997 against which the Union of India again preferred a writ petition i.e., W.P.No.9624 of 1999 and the learned Single Judge has held categorically that nothing prevented the Central Bank of India to implead Union of India and as Union of India was not impleaded as a necessary party, he has again remanded the matter back to the Principal Civil Court of original jurisdiction i.e., Warangal.
Learned counsel for the Central Bank of India was fair enough in stating before this Court that the Bank will submit an application before the trial Court for impleadment of Union of India and the trial Court be directed to decided the matter at an early date, as the dispute is an old dispute, which is pending for adjudication since last four decades.
In the light of the aforesaid, the present writ appeal stands disposed of with a liberty to the appellant/Central Bank of India to submit appropriate application for impleadment of Union of India and the trial Court shall thereafter proceed with the matter in accordance with law. It is needless to mention that as it is a dispute between the nationalized bank and Union of India, the Union of India will also make all sincere efforts to settle the dispute amicably, if possible as Central Bank of India is a nationalized bank and the matter can certainly be resolved at an appropriate level by the Central Government. It is also 3 brought to the notice of this Court that the principal amount has already been paid by the Government of India and now the dispute only remains with regard to the payment of interest.
Miscellaneous petitions, if any, shall stand closed. There shall be no order as to costs.
__________________________________ SATISH CHANDRA SHARMA, CJ ________________________________ ABHINAND KUMAR SHAVILI, J 17.02.2022 ES