Karnataka High Court
Official Liquidator Of vs M/S Axis Bank Ltd on 9 June, 2022
Bench: Suraj Govindaraj
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CA No. 2414 of 2013
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 9TH DAY OF JUNE, 2022
BEFORE
THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ
COMPANY APPLICATION NO. 2414 OF 2013
IN
COP NOS.143 AND 193 OF 2011
BETWEEN:
1. OFFICIAL LIQUIDATOR OF
M/S. DECCAN CARGO AND EXPRESS LOGISTICS PVT
LTD., (IN LIQN),
ATTACHED TO HIGH COURT OF KARNATAKA,
CORPORATE BHAVAN NO.26-27, 12TH FLOOR,
RAHEJA TOWERS, M. G. ROAD,
BANGALORE 560 001.
...APPLICANT
(BY SRI SHRISHAIL NARALGUND, ADVOCATE)
AND:
1. M/S AXIS BANK LTD
CORPORATE BANKING BRANCH,
2ND FLOOR, EXPRESS BUILDING NO.1,
QUEENS ROAD,
Digitally signed
by POORNIMA
SHIVANNA
BANGALORE 560 001.
Location: HIGH
COURT OF
KARNATAKA ...RESPONDENT
(BY SRI DHIRENDRA N. KATTI, ADVOCATE, FOR
SRI M. V. CHARATI)
***
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CA No. 2414 of 2013
THIS COMPANY APPLICATION IS FILED UNDER SECTION
446[2][B] OF THE COMPANIES ACT, 1956, READ WITH RULES 6 AND 9
OF THE COMPANIES (COURT) RULES, 1959, PRAYING THAT THE
RESPONDENT HEREIN BE ORDERED AND DECREED TO PAY TO THE
APPLICANT A SUM OF RS.4,00,000/- WITH INTEREST AT 6% PER
ANNUM FROM 21.06.2011 TO TILL THE DATE OF THE JUDGMENT AND
FUTURE INTEREST OR ANY OTHER RATE FIXED BY THIS HON'BLE
COURT.
THIS COMPANY APPLICATION IS COMING ON FOR
ARGUMENTS, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
1. Official Liquidator is before this Court seeking for following
relief:
"(a) that the respondent herein be ordered
and decreed to pay to the applicant a sum of
Rs.4,00,000/- with interest at 6% per annum
from 21.06.2011 to till the date of the
judgment and future interest or any other rate
fixed by this Hon'ble Court."
2. The contentions of the Official Liquidator is that the Fixed
Deposit maintained by the company in liquidation with the
respondent for an amount of Rs.4,00,000/- has been
liquidated by the Bank, i.e. respondent herein. Said Fixed
Deposit being asset of company in liquidation, the Bank was
not authorised to liquidate the Fixed Deposit and appropriate
the amount in its favour. In that background, Official
Liquidator has sought for directing the Bank to make
CA No. 2414 of 2013
payment of the amount liquidated along with the interest at
6% per annum till the receipt of payment thereon.
3. Sri Dhirendra N. Katti, learned counsel for the respondent,
however, submits that the Fixed Deposit has been created
from and out of term loan obtained by the company in
liquidation and as such, the amount in Fixed Deposit having
been advanced by the respondent-Bank. The respondent-
Bank has rightly liquidated the Fixed Deposit and
appropriated the amount and as such, the application is
required to be dismissed.
4. Heard the learned counsel for the parties and perused the
records.
5. The short question is, whether if any Fixed Deposit is made
by the company in liquidation could the Bank liquidate the
Fixed Deposit on the ground that Fixed Deposit has been
created from and out of the loan amount advanced or not?
6. In the present case, there is no lien or an agreement of lien
which have been created in favour of the Bank in so far as
CA No. 2414 of 2013
Fixed Deposit is concerned. Advance of loan is not in
dispute. If at all the respondent-Bank wants to recover the
amount, it has to initiate such appropriate proceedings as
may be available under law. The respondent-Bank of its own
in an unilateral manner cannot liquidate any Fixed Deposit of
any company whether in liquidation or not to appropriate the
amount due by the said company without having a lien on
the said Fixed Deposit.
7. In view of the above, the application is allowed. The
respondent-Bank is directed to make payment of
Rs.4,00,000/- with interest at 6% per annum from
21-6-2011 till the date of payment to Official Liquidator. If
the respondent-Bank does not make the payment within
eight weeks', the interest shall be enhanced to 12% per
annum.
Sd/-
JUDGE
kvk
