Kumar Aluminium Limited And Ors. vs Asset Reconstruction Company ...
2018 Latest Caselaw 6969 Del

* IN THE HIGH COURT OF DELHI AT NEW DELHI
%                                 Date of decision: 26th November, 2018

+       W.P.(C) 12507/2018, CM No. 48539/2018

        KUMAR ALUMINIUM LIMITED AND ORS.
                                                                ..... Petitioners
                         Through:       Mr. M. Dutta, Adv. with
                                        Mr. Arvind Sharma, Adv.

                         versus

        ASSET RECONSTRUCTION COMPANY (INDIA) LTD.
                                                ..... Respondent
                 Through: Ms. Usha Singh, Adv. for Respondent.

 CORAM:
 HON'BLE THE CHIEF JUSTICE
 HON'BLE MR. JUSTICE V. KAMESWAR RAO

V. KAMESWAR RAO, J. (ORAL)

CM No. 48539/2018 (for exemption) Exemption allowed subject to all just exceptions. Application stands disposed of.

W.P.(C) 12507/2018

1. This petition has been filed by the petitioners with the following prayers:-

"(a) Set aside the impugned judgment dated 27.09.2018 passed by Learned DRAT in Appeal No. 39 of 2013 titled as M/s Kumar Aluminium Ltd. & Ors. v. Asset Reconstruction Company (India) Ltd. & Anr. thereby directing the DRAT / Registrar DRAT to release the pre-deposit amount to the extent of 75%

with accrued interest to the respondent ARCIL and the balance 25% of the pre-deposit amount along with accrued interest to the petitioner herein in terms of the law settled by the Hon'ble Supreme Court in the case of Axis Bank v. SBS Organics.

(b) Pass such other or further orders / directions and grant such other reliefs in favour of the petitioner that this Hon'ble Court may deem fit and proper in the facts and circumstances of the case."

2. Vide the impugned order dated September 27, 2018, the

DRAT has decided on merits two Miscellaneous Case Nos.

220/2018 and 442/2018. The case of the petitioners before the

DRAT was for the release of pre-deposit amount, which the

Tribunal had earlier declined. The plea of the petitioners before the

DRAT was that there has been a settlement but the respondent ARC

is not issuing formal sanction of settlement and will be issued by

ARC only upon making some payment by petitioners as upfront

amount and the petitioners will make upfront amount from the

money, which is lying deposited with the DRAT. The plea made by

the learned counsel for the petitioners was that the amount be

released in favour of the ARC so that a formal sanction letter can be

issued.

3. The learned counsel for the respondent, had before the

DRAT submitted that as far as OTS is concerned, there has been a

settlement but as per the settlement, the petitioners are supposed to

make some upfront payment for which last date was 30 th

September, 2018 and till date, the payment has not been made. The

DRAT was of the view that it has got nothing to do with the alleged

settlement between the parties. In case any settlement has been

arrived at, it is for the petitioners to comply with the terms of the

settlement and to make upfront payment, if any from its own funds.

The Tribunal was also of the view that vide order dated August 17,

2017, such a prayer has already been rejected by the Tribunal on the

basis of the judgment of the Supreme Court in the case of Axis

Bank v. SBS Organics Private limited & Anr. Civil Appeal No.

4379/2016 decided on April 20, 2016, which order has not been

challenged.

4. We have been informed by Mr. Dutta that none of the SAs

are pending consideration before the DRT/DRAT. He also submits

that there is no reason for the DRAT to pass an order for release of

pre-deposit, that too in favour of the respondent, who is the secured

creditor and who has no objection for the same. The learned

counsel for the respondent has also joined Mr. Dutta by stating that

the respondent has no objection if the amount of pre-deposit lying

with the DRAT along with interest is released in favour of the

respondent.

5. Noting the submissions made by the learned counsel for the

parties, we direct that the amount of pre-deposit made by the

petitioners, which is lying deposited with the DRAT, be released to

the respondent along with accrued interest within a period of two

weeks from today, on the petitioners / respondent complying with

such formalities, as required by the DRAT. Writ petition is

disposed of.

V. KAMESWAR RAO, J

CHIEF JUSTICE

NOVEMBER 26, 2018/ak