Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

ICICI Bank Ltd. and Others Versus S. Kumars Nationwide Ltd.

2016 (8) TMI 170 - BOMBAY HIGH COURT

Winding up petition - Respondent Company is unable to pay its debts - Held that:- As the reference filed by the Respondent Company before the BIFR and which was registered on 10 December, 2015, is not non-est in the eyes of law, and therefore, there is no question of the Respondent Company getting protection under Section 22 of SICA, 1985. Therefore, unable to accept the submission of Mr Kadam that this Petition cannot proceed and/or be heard and finally disposed of. - As it is not in disput .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

one dealt by me earlier. In this view of the matter, I find that the Respondent Company is indebted to the Petitioner for huge amounts and therefore commercially insolvent and unable to pay its debts. In this view of the matter, the Company Petition is allowed in terms of prayer clauses (a) and (b) which read as under:- - (a) that the Company viz. S. Kumars Nationwide Limited, be wound up by and under the orders and directions of this Hon'ble Court under the provisions of the Companies Act, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Act, 1956, including power to take charge of all the assets, properties, stock-in-trade, books of accounts and Bank accounts of the Company. - As the learned counsel appearing on behalf of the Respondent Company, prays that the operation of this order be stayed for a period of four weeks from today. The said request is vehemently opposed by all the Petitioners. Considering that there are conflicting decisions on the point decided it would be, in the interest of justice to stay the operation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

015, COMPANY PETITION NO. 964 OF 2015 - Dated:- 1-7-2016 - B. P. COLABAWALLA J. For The Petitioner : Mr Nitin Thakkar, Sr. Advocate a/w Mr Shyam Kapadia a/w Ms Shreevardhini Parchure a/w Mr Yuvraj Singh i/b M/s Desai and Diwanji, Ms Priyanka Ladoia i/b Trilegal Advocates, Mr Nilesh Bamne i/b M/s V. Deshpande & Co, Mrs S.I.Joshi a/w Mr Anand Poojari a/w Nikita Pawar, Jalpa Pithadia and Vihar Paymode i/b S.I.Joshi & Co., Ms J. P. Garasia i/b Consulta Juris, Ms Kavisha Shah i/b India Law Al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

informed that out of this entire group, Company Petition Nos.698 of 2014, 739 of 2014, 79 of 2015, 265 of 2015, 674 of 2015 and 964 of 2015 have not yet been admitted. 2 Even though no affidavit in reply has been filed by the Respondent Company disputing the claim of many of the Petitioners on merits, one composite affidavit dated 22 June, 2016, has been filed inter alia contending that the Respondent Company has filed a reference before the Board for Industrial and Financial Reconstruction ( BI .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing granted to the Respondent Company under Section 22 of SICA, 1985. According to the Petitioners, the protection under Section 22 can be availed of by the Respondent Company only once a valid reference is made before the BIFR. Since the filing of a reference before the BIFR was barred by virtue of the 2nd proviso to Section 15(1) of SICA, there was no valid reference filed by the Respondent Company and consequently, there is no impediment in these Company Petitions being heard and finally disp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Before I deal with these legal contentions, it would be necessary to set out a few facts. Since I have heard Mr Thakkar, learned senior counsel on behalf of the Petitioner in Company Petition No.511 of 2014, I shall briefly advert to the facts in this Petition. 6 The facts of this Petition reveal that by a sanction letter dated 14 July, 2009, a Rupee Term Loan of ₹ 275 Crores was sanctioned to the Respondent Company on the terms and conditions more particularly set out therein. Thereafter, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts subsidiary Reid and Taylor (India) Ltd., (ii) a Deed of Hypothecation dated 16 September, 2009 creating a first paripassu charge over its fixed assets and second paripassu charge over its current assets in respect of movable properties of the Company and (iii) a memorandum of entry dated 18 September, 2009 creating a first paripassu charge in respect of all its immovable properties. To secure the Petitioner, the subsidiary of the Respondent, namely, Reid and Taylor (India) Ltd., also executed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e tranche, which was received and availed of by the Respondent Company without any demur. In terms of the Facility Agreement, the Respondent Company was required to repay the principal amount in quarterly installments as per the repayment schedule set out in the Sanction Letter and the Corporate Rupee Term Loan Facility Agreement and to pay interest at the agreed rate on a monthly basis. It is the case of the Petitioner that commencing from August 2012, the Company committed various defaults and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing as on 15 December, 2013), failing which winding up proceedings would be initiated. It is not in dispute that this statutory notice has been duly served upon the Respondent Company at its registered address and has been received by it. In reply to the said statutory notice, the Respondent Company, by its letter dated 5 March, 2014, did not dispute its liability in respect of the amounts outstanding to the Petitioner. In fact it reiterated the very same reasons for not making payment as was do .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

testing the claim of the Petitioner on merits. When this Company Petition came up for admission, the parties entered into consent terms dated 19 June, 2014. These consent terms were filed in this Court on 12 August, 2014. The consent terms were taken on record and thereafter this Petition was placed on board for directions on 25 August, 2014. In these consent terms, the Respondent Company admitted its liability to the extent of ₹ 95.32 Crores and agreed to pay a sum of ₹ 86.60 Crores .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herefore, this Court, after recording of all the facts admitted the Company Petition pursuant to the orders dated 25 August, 2014 read with the orders dated 28 August, 2014 and 15 September, 2014 and gave consequential directions for advertising the same in two local newspapers which is the Free Press Journal (in English) and Navshakti (in Marathi) and also in the Maharashtra Government Gazette. Pursuant to these directions, the Company Petition was duly advertised and now the same has come up b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssion/ consent of BIFR. He submitted that admittedly no such consent or permission has been obtained from the BIFR to proceed with this Company Petition and therefore the same should be adjourned sine-die with liberty to the parties to apply after the proceedings before BIFR come to an end. 11 Mr. Kadam submitted that the contention of the Petitioner that the reference before the BIFR has abated, is canvassed on an incorrect interpretation of the 3rd proviso to Section 15(1) of SICA, 1985. He su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r their secured debt under sub-section (4) of Section 13 of that Act. Mr Kadam submitted that in the facts of the present case, only IDBI had taken measure under Section 13(4) of the said Act which constituted far less than 3/4th in value of the amount outstanding to the secured creditors from the borrower as required by the 3rd proviso to Section 15(1) of SICA, 1985. He submitted that merely by obtaining the consent of other secured creditors to take measures under Section 13(4) of the said Act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, according to him states that they have taken measures under Section 13(4) of the Act only in relation to the debt due and payable to IDBI. He, therefore, submitted that admittedly the action taken by IDBI was not for and on behalf of all the secured creditors but only for their own benefit. This being the case, the conditions as required by the 3rd proviso to Section 15(1) of SICA, 1985 were not fulfilled for the reference to automatically abate. He, therefore, submitted that the Respondent Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

which assigned thedebt ARCs to which the Debt has been assigned 1 28.03.2014 EXIM Bank Edelweiss ARC 2 29.03.2014 Bank of India JM Financial ARC 3 30.06.2014 SBI Edelweiss ARC 4 Prior to Oct 2014 Indian Overseas Bank ARCIL Mr. Thakkar submitted that it is also an admitted fact that the reference filed by the Respondent Company was registered by the BIFR only on 10 December, 2015. This being the factual position, Mr Thakkar placed reliance on the 2nd proviso to Section 15(1) of SICA, 1985 to con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

A, 1985 rendering it non-est in the eyes of law. In support of this proposition, Mr. Thakkar relied upon a decision of a Division Bench of this Court in the case of Paper Prints (India) Pvt. Ltd. Vs. Phoenix ARC Pvt. Ltd. (2012) 6 Mah LJ 427 : (2013) 2 Bom CR 371 13 In the alternative, Mr Thakkar submitted that in any event the reference before the BIFR has abated by virtue of the 3rd proviso to Section 15(1) of SICA, 1985 in view of the fact that the secured creditors holding approximately 85% .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ely 85% in value). I must state over here that this letter has not been filed on record through any affidavit of the Petitioner and the same was only handed over across the bar. Be that as it may, it was therefore the submission of Mr Thakkar that, the reference filed by the Respondent Company before the BIFR automatically abated and therefore, the protection / bar of Section 22 of SICA, 1985 did not come into play. There was therefore no impediment in proceeding with the present Company Petitio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ickness in industrial companies such as loss of production, loss of employment, loss of revenue to the Central and State Governments and locking up of investible funds of financial institutions as a serious concern to the Government and the society at large. There was also an increase in the incidences of sickness in industrial companies. In order to fully utilize the productive industrial assets, afford maximum protection of employment and optimize the use of the funds of banks and financial in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

need to enact in public interest, a legislation to provide for timely determination, by a body of experts, the preventive, ameliorative, remedial and other measures that would need to be adopted with respect to such companies and for enforcement of the measures considered appropriate with utmost practicable dispatch. Keeping these objects in mind SICA, 1985 was enacted. In other words, SICA, 1985 was enacted with the avowed object of identifying sick and potentially sick companies and then try .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

companies into healthy ones, perhaps by waving a magic wand, this Act also granted an immunity in terms of Section 22, against any kind of proceedings for the recovery of dues, during the pendency of an inquiry or the preparation or operation of a Scheme. 16 Since the Government felt that BIFR and AAIFR have not been able to fulfil the purpose and mandate as envisaged under SICA, 1985 of providing viable schemes for the revival of sick companies in a reasonable short time frame, in the year 1999 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hat the facts and figures spoke for themselves and they placed a big question-mark on the utility of the institution of the BIFR and SICA, 1985. The problem of endemic delays inherent in SICA, 1985 procedures of revival and reconstruction was to a great extent exacerbated by the large scale abuse of the provisions relating to suspension of legal proceedings, suits and enforcement of contracts and other remedies contained in Section 22 of the Act. The Eradi Committee pointed out that the effectiv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ittee report can be found in a Full Bench decision of the Madras High Court in the case of M/s. Salem Textiles Limited Vs. M/s. Phoenix ARC Private Ltd. & Ors. 2013 SCC OnLine Mad 1450 : (2013) 3 CTC 257 (FB) [Paras 25 to 29] The reason why I have adverted to the report of the Eradi Committee is because it throws light on how SICA, 1985, despite its laudable objects, has, at least in spirit, failed to achieve the purpose for which it was enacted. 17 Be that as it may, in contrast, the statem .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

have the power to take possession of securities and sell them. The Legislature felt that our existing legal framework had not kept pace with the changing commercial practices and financial sector reforms, which resulted in delays in recovery of defaulting loans. This in turn had the effect of mounting levels of non-performing assets of banks and financial institutions. In order to bring the Indian Banking Sector on par with International Standards, the Government set up two Narasimhan Committee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent providing for a special procedure for recovery of dues of banks and financial institutions, but also sought to amend three other enactments, namely, (i) The Companies Act, 1956, (ii) The Securities Contracts (Regulation) Act, 1956, and (iii) SICA, 1985. It is, by virtue of Section 41 of the SARFAESI Act read with the Schedule thereto, that two provisos were inserted under the already existing proviso to sub-section (1) of Section 15 of SICA, 1985. Section 15(1) of SICA, 1985 as amended by Se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that if the Board of Directors had sufficient reasons even before such finalisation to form the opinion that the company had become a sick industrial company, the Board of Directors shall, within sixty days after it has formed such opinion, make a reference to the Board for the determination of the measures which shall be adopted with respect to the company: Provided further that no reference shall be made to the Board for Industrial and Financial Reconstruction after the commencement of the Sec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ference shall abate if the secured creditors, representing not less than three-fourth in value of the amount outstanding against financial assistance disbursed to the borrower of such secured creditors, have taken any measures to recover their secured debt under sub-section (4) of Section 13 of that Act. (emphasis supplied) 19 On a plain reading of the 2nd proviso, it is clear that no reference can be made to the BIFR after the commencement of the SARFAESI Act where the financial assets have bee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Section 13(4) of the SARFAESI Act. As can be seen from the aforesaid two provisos, they operate in two totally different fields. The 2nd proviso to Section 15(1) comes into operation where no reference has yet been filed by the sick company and the financial assets of that company have been acquired by a securitisation and reconstruction company under Section 5(1) of the SARFAESI Act. In other words, after the commencement of the SARFAESI Act, if a debt of a sick company is assigned to a securi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ainst the financial assistance disbursed to the borrower of such secured creditors, have taken any measures to recover their secure debt under Section 13(4) of the SARFAESI Act. 20 Having analyzed both the aforesaid provisions, I find considerable force in the arguments of Mr Thakkar that the Respondent Company was barred under the 2nd proviso to Section 15(1) from filing any reference before the BIFR. The facts in this case would reveal and which are really undisputed, is that the debts owed by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of law as it was in the teeth of the 2nd proviso to section 15(1) of SICA, 1985. In this regard, the reliance placed by Mr Thakkar on a decision of the Division Bench of this Court in the case of Paper Prints (India) Pvt. Ltd. (2012) 6 Mah LJ 427 : (2013) 2 Bom CR 371 is well founded. The facts of this case would reveal that DBS Bank Ltd. had granted an overdraft facility in the amount of ₹ 2.5 Crores to the Appellants, in terms of which, financial facilities were extended by the Bank. Si .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d 15 April, 2010 under Section 433, 434 of the Companies Act, 1956 and thereafter filed a winding up petition. When the petition came up for admission, the learned Company Judge directed the petition be admitted and advertised. It was urged on behalf of the Appellant that the Appellant had moved a reference before the BIFR under Section 15, and therefore, under the provisions of Section 22, the learned Company Judge could not have proceeded with the Company Petition. The Division Bench of this C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

an unsecured creditor and that consequently the reference under the SICA, 1985 will not abate unless secured creditors representing three-fourths in value of the amount outstanding have taken measures to recover their secured debt under section 13(4). 7. There is no merit in the submission. The first proviso to section 15(1) of the SICA, 1985 as introduced by the provisions of the Securitisation Act applies specifically to a situation where financial assets have been acquired by any securitisat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wers have taken measures under section 13(4). 8. The first and second proviso to sub-section (1) of section 15 of the SICA, 1985 operate in different fields. The first proviso is a specific provision made in relation to a securitisation company or reconstruction company, which has acquired financial assets after the commencement of the Securitisation Act, 2002 under section 5(1). The expression financial asset is defined in section 2(1) as follows: (1) financial asset means debt or receivables a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

isting, future, accruing, conditional or contingent; or (vi) any financial assistance. Sub-clause (i) of clause (1) includes a claim to any debt or receivables whether secured or unsecured. Therefore, the intent of Parliament when it introduced the two amendments to section 15(1) is clear. A special provision has been made in case of securitisation and reconstruction companies, where a financial asset within the meaning of section 2(1) has been acquired after the enactment of the Securitisation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

acquisition of a financial asset by a securitisation or reconstruction company which as noted earlier includes among other things a debt or receivables whether secured or unsecured. As a matter of fact, it may be noted that an express provision has been made in sub-section (4) of section 5 of the Securitisation Act in respect of suits, appeals or other proceedings which are pending on the date of the acquisition of the financial asset. Section 5(4) reads as follows: (4) If, on the date of acqui .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion company or reconstruction company, as the case may be, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the securitisation company or reconstruction company, as the case may be. 9. In the present case, the order of the learned Single Judge admitting the Company Petition for winding up was passed on 21 October, 2010. Prior thereto on 9 December, 2009 the Respondent had acquired the financial assets in question being the debts and receivables of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Thakkar. In the facts of the present case also the debts of certain Banks were assigned to ARCs long before the reference was filed by the Respondent Company before the BIFR. This being the case and the clear and unambiguous language of the 2nd proviso to Section 15(1), the reference itself was not maintainable and non-est in the eyes of law. Consequently, there is no question of the Respondent Company contending that it gets the protection under Section 22 of SICA, 1985. I must mention here th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

I 17 Relying upon the aforesaid decision, Mr Kadam submitted that a literal interpretation of the 2nd proviso will defeat the objects of SICA, 1985 namely, to prevent unemployment and other loss that occurs from closure of the sick company. He submitted that, therefore, as done by the Delhi High Court, the condition of 75% as set out in the 3rd proviso to section 15(1), ought to be read also into the 2nd proviso. In other words, he submitted that the bar of filing a reference under the 2nd provi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2011 DELHI 17 To my mind the words of the statute are absolutely clear and unambiguous, and therefore, have to be construed accordingly. I cannot, under the guise of interpretation, supply words in the statute which are conspicuous by their absence. Whilst, interpreting a provision, it is not only important to pay attention to what is said in the statute but also to what is not said. When two provisions are inserted at the same time and a condition is imposed in one and conspicuously left out f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

agraphs 179 and 180 of this decision read thus:- 179. Even otherwise, it is a well-settled principle in law that the court cannot read anything into a statutory provision which is plain and unambiguous. The language employed in a statute is a determinative factor of the legislative intent. If the language of the enactment is clear and unambiguous, it would not be proper for the courts to add any words thereto and evolve some legislative intent, not found in the statute. Reference in this regard .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the courts is that such was the intention of the legislature and that the provision was consciously enacted in that manner. In such cases, it will be wrong to presume that such omission was inadvertent or that by incorporating the condition at one place in the provision the legislature also intended the condition to be applied at some other place in that provision. (emphasis supplied) 23 In view of this clear enunciation of the law, with great respect, I am unable to agree with the view expr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alyzing the provisions of the 2nd and 3rd proviso to Section 15(1) of SICA, 1985, was unable to agree with the view taken by Delhi High Court. The relevant portion of the Andhra Pradesh High Court decision reads thus: I. CONSENT OF THE BIFR IS NOT REQUIRED, TO CONTINUE PROCEEDINGS UNDER THE SARFAESI ACT, IN VIEW OF THE SECOND PROVISO TO SECTION 15(1) OF SICA: Let us now examine whether, in the facts of the present case, the petitioners can claim the protection of SICA, and prevent the first resp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ndustrial company. It is with a view to ensure that the BIFR exercises its jurisdiction, under Sections 16 and 17 without hindrance, that Section 22(1) of SICA provides for the suspension of legal proceedings where an enquiry under Section 16 is pending, or a scheme under Section 17 is under preparation, and consideration, or a sanctioned scheme is under implementation. From the proceedings of the BIFR dated 21.01.2014, it is evident that the assets of the petitioner, mortgaged to Karur Vysya Ba .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e to it, by the board of directors of a sick industrial company, under Section 15(1) of SICA and its first proviso. As no reference could have been made by the petitioner to the BIFR, in view of the embargo placed on it by the second proviso to Section 15(1) of SICA, the non-obstante clause under Section 22(1) of SICA has no application, and neither the securitisation company nor the first respondent-bank, are obligated to obtain the consent of BIFR to realise the security in accordance with the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion bench of the Delhi High Court held that a literal interpretation of the second proviso to Section 15(1) which, unlike the third proviso thereto, does not require atleast 75% of the secured debt to be purchased by an asset reconstruction company or a securitization company, will defeat the object of SICA which is to prevent unemployment and loss of revenue to the state exchequer, and other ills which arise from the closure of an industry; if such an interpretation is adopted, a purchaser of a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

harmoniously with each other, and the object of the legislature will have to be understood by reading all the special statutes taken together; a literal interpretation, of the 2nd proviso to Section 15(1) of SICA, does not require any minimum percentage of the secured assets to be purchased by an asset reconstruction company, or a securitization company acting under the SARFAESI Act; the literal interpretation results in an absurdity and a stalemate which can and should be avoided; and, in the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mbiguous, and must be enforced. It is, normally, not the concern of Courts to examine its reasonableness or consider its consequences. (Cape Brandy Syndicate v. IRC). If the meaning of the provision is reasonably clear, Courts have no jurisdiction to mitigate harshness. (Canadian Eagle Oil Co. Ltd v. R; IRC v. Ross & Coulter (Bladnock Distillery Co. Ltd). Courts of law have nothing to do with the reasonableness or unreasonableness of a provision of a Statute except in so far as it may help i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

th the question whether the policy it embodies is wise or unwise, or whether it leads to consequences just or unjust, beneficial or mischievous. (Cooke v.Charles A. Vogeler Co). As long as there is no ambiguity in the statutory language resort to any interpretative process to unfold the legislative intent becomes impermissible. The supposed intention of the legislature cannot then be appealed to whittle down the statutory language which is otherwise unambiguous. If the intendment is not in the w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rein, and not dehors the same. No words ought to be added, and only the language used ought to be considered, so as to ascertain the proper meaning and intent of the legislation. The court is to ascribe a natural and ordinary meaning to the words used by the legislature and the court ought not, under any circumstances, to substitute its own impression and ideas in the place of the legislative intent as is available from a plain reading of the statutory provisions. (Orissa State Warehousing Corpo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

two different and distinct situations. While the second proviso prohibits even a reference being made to the BIFR, the third proviso brings to an end the proceedings pending before the BIFR. As noted herein above, the board of directors of the petitioner company made a reference to the BIFR by their letter dated 10.10.2013, long after the respondent-bank had initiated proceedings against them under Section 13(4) and 14 of the SARFAESI Act. The endorsement on the reference, by the Secretary of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ry under Section 16(1) of SICA or for that matter remedial measures being taken under Section 17 to 19 of SICA, by the BIFR are also without jurisdiction and a nullity. Once the jurisdiction of the BIFR has been divested by the mandatory impact of the second proviso to Section 15(1), the BIFR cannot pass any orders under SICA. (Punjab National Bank). (emphasis supplied) 25 I am in full agreement with the view expressed by the Andhra Pradesh High Court in the case of M/s SVPCL Ltd. 2015 SCC OnLin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

this Petition cannot proceed and/or be heard and finally disposed of. 27 As far as the facts of Company Petition No.511 of 2014 are concerned, it is not in dispute that a huge amount is due and payable by the Respondent Company to the Petitioner. In fact, in the consent terms filed in this Court dated 19 June, 2014, the Respondent Company has expressly admitted its liability to the Petitioner in the sum of ₹ 95.32 Crores. Admittedly, this amount has not been paid. In fact, Mr Kadam very f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ompany viz. S. Kumars Nationwide Limited, be wound up by and under the orders and directions of this Hon'ble Court under the provisions of the Companies Act, 1956, and the Official Liquidator attached to this Hon'ble Court be appointed as the Liquidator of the Company and all its assets, books of accounts, vouchers, files, documents etc. with all powers under the Companies Act, 1956; (b) that pending hearing and final disposal of this Petition, the Official Liquidator of this Hon'ble .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version