BANK OF BARODA (VIJAYA BANK) vs BENGAL MILLS STORES PVT LTD on 18 March 2024

1. By way of the present MA, the Applicant has prayed that direct the Ld. Registrar, DRT-II, Mumbai to release the deposited amount of Rs.1,24,10,288/- alongwith the accrued interest to the Applicant and/or to transfer the same to Ld. Registrar, DRT-I, Mumbai to the credit of TOA No.2/2021 with further direction to the Ld. Registrar, DRT-I, Mumbai to release the said amount with interest to the Applicant.

2. Heard Ld. Counsel for the Applicant.

3. It is admitted fact that during the pendency of the Original Application, the Writ Petition No.2356/2018 was filed before the Hon’ble High Court of Bombay and in the said Writ Petition, the Hon’ble High Court vide order dated 21.08.2018 after hearing both the Counsels has taken on record the consent minutes of the order dated 21st August, 2018 and also directed this Tribunal to dispose off the OA alongwith the SA owing to the consent terms arrived between the parties.

4. For the convenience, the said terms of the consent minutes, as recorded in the order of Hon’ble Bombay High Court dated 21.08.2018, are reproduced herein below: “1. The Respondents to conduct the Auction of the Movable Property viz. “All that piece and parcel of Hypothecated Goods i.e. seamless straight, welded, Erw Spiral welded Steel pipes M/s Plates etc. of various diameters length and thickness stored at land bearing Plot No.37/A, Survey No.339/1/1, Vallivie, Dahisar, Mori, Mumbai, Panvel Road, Navi Mumbai, Dist. Thane- 400612 (more particularly set out in Exhibit “K” to the above Writ Petition) on 24.08.2018 between 11.00 a.m. to 1.00 p.m. having reserve bid of Rs.1,24,00,000/-

2. The petitioner is at liberty to participate in the said auction and is also at liberty to bring the prospective buyer for purchase of the movable properties set out in Clause 1 above.

3. Amount realized from the sale of movable properties as set out in Clause 1 above shall be deposited with the Ld. Registrar, DRT-II, Mumbai after deducting the sale expenses incurred in the aforesaid auction.

4. The Ld. Registrar, DRT-II, Mumbai is hereby directed to invest the amount received by him under Clause 3 above with any Nationalised Bank and the same shall be invested from time to time.

5. The amount deposited/invested as per Clause 4 above shall be subject to the outcome of the Original Application No.150/2011, which is pending for hearing.

6. Parties are at liberty to file pleading in O.A. and S.A. with prior permission of DRT.

7. The present Writ Petition be disposed off in terms of the aforesaid.” (emphasis supplied)

5. Thus, as per the said terms of the consent minutes, the Applicant conducted the auction of the hypothecated goods and recovered an amount of Rs.1,24,10,288/- from the sale of the hypothecated goods and deposited the said amount with the Ld. Registrar, DRT-II, Mumbai through Cheque No.200051 dated 14.11.2018.

6. It is important to note here that the OA was originally filed before the Ld. DRT-II, Mumbai being OA No.150/2011, which later on due to change in jurisdiction was transferred to this Tribunal and registered as TOA No.2 of 2021.

7. It is also important to note here that the amount which was deposited with the Ld. Registrar, DRT-II, Mumbai, was required to be adjusted after the outcome of the OA and now final order in the OA is passed on 21.02.2024 thereby the OA is allowed and thus, the Applicant is now entitled to realise the said amount of Rs.1,24,10,288/- which to be adjusted in the impugned account of the Defendants and thus, the said amount is required to be disbursed to the Applicant of OA alongwith the accrued interest for adjustment of the same in the account impugned.

8. In view of the submission of the Applicant as well as facts and circumstances of the present MA, the present MA is hereby allowed and the Ld. Registrar of DRT-II, Mumbai is hereby directed to release the amount alongwith accrued interest (which was deposited in furtherance of the order of Hon’ble High Court of Bombay dated 21.08.2018) to the Ld. Registrar of DRT-I, Mumbai and Ld. Registrar of DRT-I is hereby directed

Sgj/-2 after receiving the said amount from the Ld. Registrar of DRT-II, Mumbai release the same in favour of the Applicant of OA alongwith accrued interest immediately and which shall be adjusted by the Applicant in the account impugned in terms of order dated 21.02.2024.

9. With the abovesaid direction, the present MA is hereby disposed off.

10. File be closed and consigned to the record.

P.O. DRT-I