Mountview Tracom Llp vs Apl Metals Limited
2022 Latest Caselaw 1266 Cal/2

ODC 26

                              EC/49/2022
                    IN THE HIGH COURT AT CALCUTTA
                  ORDINARY ORIGINAL CIVIL JURISDICTION
                         COMMERCIAL DIVISION


                          MOUNTVIEW TRACOM LLP
                                   VS
                           APL METALS LIMITED

 BEFORE:
 The Hon'ble JUSTICE SHEKHAR B. SARAF
 Date : 5th April, 2022.


                                                                   Appearance:
                                                        Ms. Radhika Singh, Adv.

                                                      Ms. Adreeka Pandey, Adv.
                                                       Ms. Mandeep Raw, Adv.


         The Court: Heard counsel appearing on behalf of the parties.

         On the last occasion this Court had directed the judgment debtor to

 take instructions with regard to the manner in which they would secure Rs. 8

 crores that is payable to the award holder. Counsel appearing on behalf of the

 respondent has submitted that their bank is unable to provide a bank

guarantee. Counsel further seeks time for a week to take further instructions

in this matter. The answer received from the respondent is not sufficient and

clearly shows a callous approach to the entire matter. It is recorded in the

earlier orders that the company is running a business wherein the revenue of

the company is Rs.633 crores.

In light of the same, the award debtor who is enjoying a cash credit

facility with Indian Bank for a sum of Rs.114 crores shall not be allowed to

avail credit to the extent of Rs. 8 crores representing the decree of the decree

holder. This margin shall also be maintained while availing of the cash credit

facility, as if the above amount lies in the account to the credit of the decree

holder.

In case the bank wants to cancel the cash credit facility for any default

on the part of the judgment debtor, the above amount would immediately be

set apart in a separate account to the credit of the petitioner and thereafter the

facility be cancelled.

This order will not come in the way of any transaction between the

Bank and the judgment debtor. Any change in this position should be made

by the bank upon notice to the decree holder. The above order passed by me

is keeping in inconsonance with an order passed by the Hon'ble Justice I. P.

Mukerji, J. in Cliff Navigation S.A. vs. LMJ International Ltd. (GA No.3167 of

2012, EC No.302 of 2012) dated 24th January, 2013. It is to be noted that the

order dated 24th January, 2013 was upheld by the Supreme Court by an order

dated 9th February, 2015.

The matter is made returnable two weeks hence.

The judgment debtor will be present on the returnable date.

(SHEKHAR B. SARAF, J.)

sp/