M/S Periwal Chemicals Industries ... vs Bihar State Credit And Investment ...
2022 Latest Caselaw 3705 Jhar

        IN THE HIGH COURT OF JHARKHAND AT RANCHI
                (Letters Patent Appellate Jurisdiction)
                            L.P.A No. 737 of 2018

M/s Periwal Chemicals Industries Pvt. Ltd., Ranchi                ...... Appellant
                               Versus
Bihar State Credit and Investment Corporation, Patna and Others
                                               .... ... Respondents


CORAM: HON'BLE MR. JUSTICE SHREE CHANDRASHEKHAR
        HON'BLE MR. JUSTICE RATNAKER BHENGRA

For the Appellant         : Mr. Ajit Kumar, Sr. Advocate
                            Ms. Amrita Sinha, Advocate
For BICICO                : Mr. Amit Kumar Das, Advocate
For Respondent No.4       : Mr. Indrajit Sinha, Advocate
                            Mr. Vipul Poddar, Advocate
                                   ---------

Order No. 11 /Dated: 14th September 2022

This Letters Patent Appeal has been preferred by M/s Periwal Chemicals Industries Pvt. Ltd. (in short, the Company) questioning legality of the order dated 26 th September 2018 passed in W.P(C) No.1360 of 2017.

2. The Company came before the writ Court with a prayer seeking a direction upon the Bihar State Credit and Investment Corporation (in short, BICICO) to adhere to the communication dated 27th February 2017 and accept Rs.1.51 crores towards full and final settlement of the loan account.

3. The prayer at Clause (b) gives a clear picture of the issue raised by the Company before the writ Court which reads as under:

"(b) For a direction upon the Respondent No.1 to forthwith consider the proposal made by the Appellant vide Letter dated 20.02.2017 (Annexure-10) sent in response to the Letter dated 17.02.2017 (Annexure-9) issued by the Respondent No.1, whereby the Appellant has been offered to acquire the aforesaid sold out property at Rs.1,51,00,000/- on the terms and conditions mentioned therein and admittedly the Appellant has accepted the said proposal of the Respondents communicated to the Appellant vide Letter dated 17.02.2017 (Annexure-9) subject to settlement of entire outstanding loan amount at Rs.1,51,00,000/-, against the Principal outstanding dues of Rs.79,00,000/- and interest charged thereon to the tune of Rs.31 crores, total being Rs.31.79 crores approx."

4. Before the writ Court M/s Bhawani Enterprises, Patna was made respondent no.4.

5. The writ Court proceeded to examine the stand taken by the Company with a special reference to the judgments of the Hon'ble Supreme Court passed in Civil Appeal Nos.2928-2930 of 2018 title "ITC Limited v. Blue Coast Hotels Ltd.", "Central Bank of India v. C.L Vimla & Ors." (2015) 7 SCC 337 and "Punjab Financial Corporation v. Surya Auto Industries" (2010) 1 SCC 297 and came to a conclusion that the Company which failed to avail the benefits offered by BICICO is not entitled for any relief - W.P(C) No.1360 of 2017 was dismissed.

6. Mr. Ajit Kumar, the learned senior counsel for the Company assisted by Ms. Amrita Sinha, the learned counsel raises a question on legality of BICICO in retaining the amount of Rs.1.51 crores which was deposited by the Company pursuant to the order dated 20 th April 2017 passed by this Court in L.P.A No.154 of 2017.

7. There is no dispute that M/s Bhawani Enterprises, Patna which was declared the highest bidder has deposited the bid amount and possession of the property in question was handed over to it.

8. Mr. Ajit Kumar, the learned senior counsel for the Company submits that BICICO which settled the loan account under sold off category and realized the principle loan amount from the Company, on receiving the full bid amount from the respondent no.4-M/s Bhawani Enterprises, Patna cannot retain Rs.1.51 crores deposited by the Company pursuant to the order passed by the Letters Patent Court vide order dated 20th April 2017.

9. In view of the aforesaid submissions, the present Letters Patent Appeal is now confined to the issue: Whether BICICO can retain Rs.1.51 crores which was deposited by the Company pursuant to the order dated 20th April 2017 passed by the Letters Patent Court, even after realizing the said amount from the successful bidder?

10. Let an affidavit be filed by the appellant-Company within two weeks, confining the present Letters Patent Appeal on the above issue.

11. Since this Letters Patent Appeal is now confined to the aforementioned issue, a specific reply shall be filed by the BICICO within the same period.

12. Post the matter on 13th October 2022.

(Shree Chandrashekhar, J.)

(Ratnaker Bhengra, J.)

sudhir