Calcutta High Court
Dankuni Steel Limited vs Sarat Chatterjee & Co. (Vsp) Pvt. Ltd. & ... on 12 June, 2025
Author: Arijit Banerjee
Bench: Arijit Banerjee
OD-5
ORDER SHEET
APO/293/2014
IA NO: GA/4/2018(Old No:GA/3073/2018)
IN THE HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
ORIGINAL SIDE
DANKUNI STEEL LIMITED
VS
SARAT CHATTERJEE & CO. (VSP) PVT. LTD. & ORS.
BEFORE:
The Hon'ble JUSTICE ARIJIT BANERJEE
AND
The Hon'ble JUSTICE RAI CHATTOPADHYAY
Date : 12th June, 2025.
Appearance:
Mr. Rajesh Upadhyay, Adv.
..for the appellant
Mr. Tilak Kr. Bose, Sr. Adv.
Ms. Suchismita Ghosh, Adv.
Mr. Pradip Kr. Sarawagi, Adv.
..for the respondent no.1
Mr. S. R. Saha, Adv.
..for the respondent no.2
Dictated by Arijit Banerjee, J.
The Court: A judgment and order dated July 29, 2015 was passed
by a Co-ordinate Bench in CC/16/2014 (Dankuni Steels Ltd. vs. Ajit Kumar
Bothra & Anr.) with APO/293/2014, CS/77/2013 (Dankuni Steels Ltd. vs.
Sarat Chatterjee & Co.(VSP) Pvt. Ltd. & Ors.), the portion of which is relevant
immediately reads as follows:
"We find that the consignment of metallurgical coke
brought by M.V. Filia Joy and M.V. Glovis Master were cleared
by R-1 (Sarat) on behalf of the appellant and R-4 (Concast).
Out of the said consignment, R-2 (LMJ) has staked a claim over
10000 MT of coke as it is in possession of the documents of title
of the said goods, namely, bills of lading nos.1 and 2.
The issue as to whether the said goods, that is, 10000 MT
of coke, had been sold by R-2 (LMJ) to R-3 (Balaji) or not is to
be decided on trial. However, there is nothing on record to
show that R-2 (LMJ) was paid the sale price of the said goods
and hence a strong prima facie case of lien as unpaid seller is
made out in its favour in respect of the said goods.
With regard to the claim that goods which were kept by R-
1 (Sarat) in LMJ godown were in fact delivered to R-2 (LMJ), we
are of the opinion that no definite conclusion can be arrived at
thereon on the basis of affidavits alone and the same is to be
thrashed out on evidence during trial. Hence, value of 10,000
MTs of coke out of the entire consignment is required to be set
apart to secure the claim of R-2 (LMJ) till the disposal of the
suit.
We are also of the view that in view of the vagaries of the
market and the likelihood of price of coke going down and to
avoid further escalation of demurrage charges it would be
prudent to sale 10,000 MTs of coke out of the remainder stock
to secure the claim of R-2 (LMJ). Appellant and/or R-4
(Concast) shall be at liberty to take delivery of remainder of the
goods after clearing of the customs duty and port charges
thereon in accordance with law.
In this backdrop, we are of the opinion that a Special
Officer be appointed to inspect the aforesaid godowns and
make an inventory of the goods lying therein and thereafter to
take steps for sale of 10,000 MTs of coke out of the stock lying
at R-5 and Ripley godown. The sale price of the aforesaid
consignment after clearance of customs duty and port charges
thereon shall be deposited by the Special Officer with the
Registrar, Original Side, who shall keep the same in an interest
bearing fixed deposit account in a nationalized bank subject to
the result of the suit. The appellant and/or R-4(Concast) shall
be at liberty to take delivery of remainder of the stock lying in
the godowns after clearing the customs duty and port charges
thereon, if any, in accordance with law. This order shall not
preclude R-1 (Sarat) from taking steps for recovery of its
handling and other service charges in accordance with law, if
so advised."
It appears that after some delay, the Special Officer took steps for
sale of the concerned coke. Sale of 10,000 MT of coke was confirmed in
favour of one M/s. Tycoon Suppliers Private Limited by a Co-ordinate Bench
by an order dated May 15, 2017.
LMJ International Limited (now known as Manisuvrata Agri
International Limited) carried the said order of confirmation of sale to the
Hon'ble Supreme Court. By a judgment and order dated December 14,
2017, the Hon'ble Supreme Court set aside the order of the High Court. The
operative portion of the order of the Hon'ble Supreme Court reads as follows:
"14) It is clear that value of Met Coke is much higher
(which gets substantiated by the valuation report as well) and
may be for this reason Siona Enterprises came forward with
much higher offer, i.e., Rs.14,500/- per MT exclusive of taxes.
Though, High court was right in rejecting that offer on technical
grounds, this fact is emphasised to point out that the goods in
question are capable of receiving much higher price. It would,
therefore, be in the overall interest of the parties to have fresh
auction.
15) We, therefore, allow this appeal and set aside the
order of the High Court. Special Officer is directed to get the
valuation done again so that present day valuation of the
goods is ascertained and on that basis fresh public notice for
inviting the bids for the goods in question be issued with clear
stipulation that the reserved price is exclusive of taxes. If it is
possible to ascertain the exact amount of charges and taxes
those may also be indicated in the public notice so that the
intending bidders have clear picture while making their bids.
In view of the fact that fresh auction is ordered, the amount
which was deposited by the auction purchaser shall be
refunded."
Today, Mr. Bose, learned Senior Advocate, appearing for the
respondent no.1 herein, says that after the Hon'ble Supreme Court passed
the order in December, 2017, nothing has progressed in the matter of sale of
the concerned coke. Numerous meetings have been held. Voluminous
correspondence has been exchanged. But no effective step has been taken.
We deem it appropriate and hereby do call for a report from the
learned Special Officer as to the steps he has taken in terms of the Hon'ble
Supreme Court's order for disposal of the concerned coke lying in two
godowns taken on lease by the respondent no.1 as indicated in the earlier
orders. Let such report with supporting documents, if any, be filed by June
26, 2025.
This matter will be listed again on June 26, 2025.
Learned Advocate-on-Record for the respondent no.1 shall
communicate this order to learned Special Officer immediately.
(ARIJIT BANERJEE, J.)
(RAI CHATTOPADHYAY, J.)
bp
