IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE PIUS C.KURIAKOSE & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 6TH JULY 2010 / 15TH ASHADHA 1932 Co.Appeal.No.34 of 2010(G) -------------------------------- AGAINST THE ORDER IN COM. APPL. NO.346/09 IN COM. APPL NO.114/09 IN COMPANY PETITION NO.33/2001. .................... APPELLANT/1ST RESPONDENT --------------------------------- THE ASSISTANT GENERAL MANAGER, INDIAN BANK, 31, RAJAJI SALAI, CHENNAI-600001, REPRESENTED BY THE ASSISTANT GENERAL MANAGER, INDIAN BANK, CIRCLE OFFICE, CHITTOOR ROAD ERNAKULAM. BY ADV. SRI.S.EASWARAN RESPONDENT(S): APLLICANT & RESPONDENTS 2 TO 18 -------------------------------------------------------------- 1. THE CHAIRMAN & MANAGING DIRECTOR, M/S. THIRUVEPATHY MILLS PVT. LTD., 90, HILLS ROAD, P.B.NO.1, KANNUR-670013, KERALA STATE. 2. DY. REGIONAL DIRECTOR, ESIC, DDA, SHOPPING-CUM-OFFICE COMPLEX P.B.NO.1, KANNUR, KERALA. 3. THE PRESIDENT/SECRETARY, C/O. THIRUVEPATHY MILLS PVT. LTD. WORKERS UNION, 90, MILL ROAD, P.B.NO.1, KANNUR, KERALA. 4. THE MANAGING DIRECTOR, KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD., TC 10-102-1, KESTON ROAD, KAWDIAR, TRIVANDRUM. 5. CANNANAORE DISTRICT TEXTILE MILLS WORKERS UNION (CITU) REG. NO.63/59, REP. BY ITS GENERAL SECRETARY SRI. T.RAMAKRISHNAN, KANNUR. COM. APPEAL.34/10 -2- 6. THIRUVEPATHY MILLS, LABOUR UNION (INTUC) REP. BY ITS SECRETARY P.RATNAKARAN, INTUC OFFICE, FORT ROAD, KANNUR. 7. THIRUVEPATHY MILLS EMPLOYEES UNION (HMS), REG. NO. 222/70, REP. BY ITS GENERAL SECRETARY K.V. PAVITHRAN, KANNUR. 8. KANUR DISTRICT TEXTILE LABOUR UNION (AITUC), REP. BY ITS SECREARY A.SHRESHAN KANNUR. 9. KANNUR JILLA TEXTILE MAZDOOR SANGH (BMS) REP. BY ITS SECRETARY. P.BHASKARAN, KANNUR. 10. THE SECRETARY, DEPARTMENT OF COMMERCIAL TAXES, SECRETARIAT, TRIVANDRUM. 11. KERALA STATE ELECTRICITY BOARD, VYDHYUTHI BHAVAN, PATTOM, TRIVANDRUM. 12. THE EXECUTIVE OFFICER, OFFICE OF THE CONTONMENT BOARD, KANNUR-600017. 13. REGIONAL PROVIDENT FUND COMMISSIONER OFFICE OF THE REGIONAL PROVIDENT FUND, ERNAKULAM. 14. EMPLOYEES STATE INSURANCE CORPORATION THRISSUR. 15. KERAA STATE INDUSTRIAL DEVELOPMENT CORPORATION, THIRUVANANTHAPURAM. 16. SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 17. KERALA STATE ELECTIRICITY BOARD, VYDHYUTHI BHAVAN, PATTOM, THIRUVANANTHAPURAM REP. BY ITS SECRETARY. 18. EXECUTIVE OFFICER, OFFICE OF THE CANTONMENT BOARD, KANNUR-600017. ADV. SRI.K.MONI FOR R SRI.N.NAGARESH FOR R3,5 TO 9 SRI.E.K.NANDAKUMAR THIS COMPANY APPEAL HAVING COME UP FOR ADMISSION ON 06/07/2010,THE COURT ON THE SAME DAY PASSED THE FOLLOWING: PIUS C. KURIAKOSE & C. K. ABDUL REHIM, JJ. ------------------------------------------------ Company Appeal No.34 of 2010 ------------------------------------------------ Dated this the 6th day of July, 2010 JUDGMENT Pius C. Kuriakose, J Under challenge in this appeal filed by the Indian Bank, a secured creditor of the company in liquidation is order of the Company Judge permitting the Official Liquidator to withdraw the sum of Rs.5,09,62,725/- which was remaining under deposit with the Indian Bank even after permitting the Bank to retain Rs.4 crores to be appropriated against the dues to the Bank and to deposit the above amount in an appropriate Bank which offers the highest rate of interest in respect of the same. Company Appeal No.34 of 2010 -2- 2. On considering the appeal for admission, after hearing Sri.S.Easwaran, the learned counsel for the appellant and Sri.K.Moni, the learned Standing Counsel for the Official Liquidator and learned counsel for the other parties, we enquired of Sri.Easwaran as to whether the appellant/bank will be prepared to offer a slightly higher rate than the rate of 7.5% per annum presently offered by the North Malabar Gramin Bank, one of the authorised banks in which deposits are being made by the Official Liquidator. Sri.Easwaran took time for getting instructions from the concerned in the Bank and has now finally informed us that the Bank will not be able to offer more than 7.25% per annum as interest. Company Appeal No.34 of 2010 -3- 3. Sri.Easwaran would assail the impugned order of the learned Company Judge stating that the order goes beyond the scope of company application No.346/09 where the ex-Managing Director of the company in liquidation was the applicant and the prayer was only that the Bank be directed to refund the balance amount out of the total amount of Rs.8 crores after deducting a sum of Rs.1,65,00,000/- which alone is according to him due to the Bank. According to Mr.Easwaran, the prayer in the above C.A. was plainly not grantable and hence, what the learned Judge would have done was to dismiss the above C.A. Instead of this, what has been ordered under the impugned order is to permit the Official Company Appeal No.34 of 2010 -4- Liquidator to withdraw the sum of Rs.5,09,62,725/- and to deposit the same in another Bank which offers the highest rate of interest. 4. The submissions of Sri.Easwaran were attractive but only technically. We find that Annexure-1 statement was also filed by the Official Liquidator and was available before the learned Company Judge in the very same C.A. When the C.A. came up before the learned Company Judge for decision it was always open to the learned Company Judge to pass orders which are just and convenient in terms of Rule 9 of the Company Court Rules taking into account all the materials which were available before the learned Company Appeal No.34 of 2010 -5- Judge. We do not find anything patently illegal or unjust about the impugned order and hence we sustain the same despite the technical attractiveness of the submissions of Sri.Easwaran. 5. The appeal will stand dismissed. No costs. PIUS C. KURIAKOSE JUDGE C. K. ABDUL REHIM JUDGE kns/-