Kumarkom Aquaserene Pvt Ltd vs Kerala State Industrial ...
2022 Latest Caselaw 6581 Ker

                     IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                      PRESENT
                       THE HONOURABLE MR.JUSTICE V.G.ARUN
        THURSDAY, THE 9TH DAY OF JUNE 2022 / 19TH JYAISHTA, 1944
                             WP(C) NO. 18247 OF 2022
PETITIONER:

              KUMARKOM AQUA SERENE PVT LTD.
              REPRESENTED BY ITS MANAGING DIRECTOR RAJEEV V.K., AGED 53
              YEARS, SON OF KUNJUKUNJU, VETTOOR, 4/125, KUDAVACHOOR P.O.,
              KOTTAYAM-686 144, RESIDING AT VETTOOR HOUSE, 4/125,
              ACHINAKOM, KUDAVACHOOR P.O., VAIKOM TALUK, KOTTAYAM-686
              144., PIN - 686144

              BY ADVS.
              P.B.SAHASRANAMAN
              T.S.HARIKUMAR
              G.N.DEEPA


RESPONDENT:

              KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED
              KSIDC, KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION,
              REPRESENTED BY ITS MANAGING DIRECTOR, T.C. XI/266, KESTON
              ROAD, KOWDIAR,
              THIRUVANANTHAPURAM-695 003., PIN - 695003

              BY ADV. P.U.SHAILAJAN



     THIS     WRIT    PETITION   (CIVIL)   HAVING   COME   UP   FOR   ADMISSION   ON
09.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 18247 OF 2022
                                     2




                               JUDGMENT

Dated this the 09th day of June, 2022

The petitioner committed default in repayment

of the loan availed from the respondent Corporation.

In spite of being provided opportunity to settle the

loan account by availing One Time Settlement (OTS)

facility, the petitioner was not able to remit the

amount and was forced to approach this Court in

W.P(C).No.8230 of 2022. That writ petition was

disposed of by Ext.P1 judgment, permitting the

petitioner to deposit 10% of the OTS amount, and

directing the respondent to consider his application

for OTS in accordance with law and Rules governing

OTS Schemes. This writ petition is filed stating that,

in compliance of Ext.P1 judgment, the petitioner

remitted 10% of the amount due under the OTS. In

the meanwhile, the respondent initiated proceedings

under the Insolvency and Bankruptcy Code (IBC)

before the National Company Law Tribunal (NCLT), WP(C) NO. 18247 OF 2022

Kochi. The matter now stands posted for orders on

the D Form submitted by the respondent.

2. Learned Counsel for the petitioner submitted

that the petitioner's request for grant of OTS is being

placed in the Board Meeting of the respondent

Corporation scheduled to be held on 28.06.2022. In

the meanwhile, if the NCLT passes an order based on

the D Form submitted, the bank accounts and

activities of the petitioner will come to a stand still. It

is therefore prayed that, till the request for OTS is

considered in accordance with the direction in Ext.P1

judgment, proceedings before the NCLT may be

directed to be kept on hold.

3. Learned Standing Counsel for the respondent

submitted that the petitioner is a chronic defaulter

and had failed to meet the commitments, despite the

benefit of OTS being granted. Under such

circumstances, the respondent was constrained to

approach the NCLT and the petitioner cannot seek

deferment of such proceedings at this belated stage.

It is also pointed out that the OTS period is over and WP(C) NO. 18247 OF 2022

an amount of Rs.19.88 crores is in arrears as on

31.03.2022.

4. By Ext.P1 judgment, this Court had permitted

the petitioner to remit 10% of the OTS amount and

had directed the respondent to consider petitioner's

application for OTS, if such remittance is made. The

petitioner asserts that the direction in Ext.P1 is

complied with and the Board of the Corporation is

willing to consider his request for OTS.

5. Indisputably, the petitioner's request for OTS

is being considered in the Board meeting of the

respondent scheduled to be held on 28.06.2022. If so,

it is only appropriate to defer the proceedings before

the NCLT till such time, since orders passed by the

NCLT in the meanwhile may substantially prejudice

the interest of the petitioner and affect the decision

to be taken by the Board.

In such circumstances, the writ petition is

disposed of, directing the Board of the respondent

Corporation to take a decision on the request for OTS

submitted by the petitioner in the meeting scheduled WP(C) NO. 18247 OF 2022

on 28.06.2022. The decisions, if any, taken by the

NCLT in the meanwhile, shall not be implemented till

28.06.2022.

Sd/-

V.G.ARUN

JUDGE NB/9-6 WP(C) NO. 18247 OF 2022

APPENDIX OF WP(C) 18247/2022

PETITIONER'S EXHIBITS EXHIBIT P1 TRUE COPY OF THE JUDGMENT OF THIS HON'BLE COURT IN W.P.(C)NO. 8230 OF 2022, DATED 28-03-2022 EXHIBIT P2 TRUE SCANNED COPY OF THE DD TAKEN IN THE NAME OF THE RESPONDENT DATED 30-03-2022 EXHIBIT P3 TRUE COPY OF THE PROCEEDINGS OF THE NATIONAL COMPANY LAW TRIBUNAL, KOCHI BENCH (NCLT) IN CP(IB)/22/KOB/2022 DATED 01-06-2022 RESPONDENT'S EXHIBITS:

ANNEXURE R1 TRUE COPY OF THE CIRCULAR NO.KSIDC/319BM/2020/474 DATED 19.11.2020 REGARDING THE COVID OTS AMNESTY SCHEME ANNEXURE R2 TRUE COPY OF THE LETTER NO.KSIDC/TVM/SCYS/320BM/2249 DATED 11.02.2021 INTIMATING ABOUT THE OTS SANCTION TO THE PETITIONER ANNEXURE R3 TRUE COPY OF THE LETTER NO.KSIDC/TVM/SCY8/323BM/1190 DATED 31.08.2021 ISSUED BY THE RESPONDENT TO THE PETITIONER ANNEXURE R4 TRUE COPY OF THE APPLICATION SUBMITTED BY THE PETITIONER ON 30.03.2022 TO THE RESPONDENT

TRUE COPY

P.A TO JUDGE