Lsp IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION COMPANY APPLICATION NO. 1473 OF 2008 IN COMPANY PETITION NO. 315 OF 2004 IN COMPANY PETITION NO. 642 OF 1983 Raghanath Basudev Somani & 2 ors. ...Applicants V/s. The Official Liquidator of High Court of Shreeniwas Cotton Mills Ltd. ...Respondents Mr. Iqbal Chagla a/w. Mr. D.Madon Mr. V.Tulzapurkar, Mr. Cyrus Avdheshir i/b. Wadia Gandhy & Co. for applicants. Mr. V.P.Sawant-Official Liquidator. CORAM CORAM CORAM : A.M.KHANWILKAR,J. : A.M.KHANWILKAR,J. : A.M.KHANWILKAR,J. DATED DATED DATED : 12th November, 2008 : 12th November, 2008 : 12th November, 2008 P.C. . In the Company Application, following reliefs are claimed in the prayers. "(a) that this Hon’ble Court be pleased to grant me leave to withdraw Company Petition No. 315 of 2004 (i.e. the Scheme). (b) that this Hon’ble Court direct the Official Liquidator, High Court, Bombay to refund to Lodha Builders Private Limited the sum of Rs. 22,50,00,000/- deposited on 4th April, 2005 pursuant to the order dated 21st March, 2005 along with interest accrued thereon; (c) that this Hon’ble Court direct the State Bank of India refund to Lodha Builders Private Limited the sum of Rs. 10,00,00,000/- deposited pursuant to the order dated 21st March, 2005 along with interest thereon at the prevailing prima lending rate (PLR) of the State Bank of India computed for the period from date of payment till the date of repayment; (d) that this Hon’ble Court direct the Punjab & 2 Sindh Bank to pay to Lodha Builders Private Limited the sum of Rs. 71,00,000/- deposited pursuant to the order dated 21st March, 2005 along with interest thereon at the prevailing prima lending rate (PLR) of the Punjab & Sindh Bank computed for the period from the date of payment upto the date of repayment; and (e) for such further and other reliefs as the nature and circumstances of the case may require." 2. In so far as prayer clause (a) is concerned, the same is opposed by the Intervenor Meghal Homes Pvt. Ltd. According to said Intervenor the applicants cannot be permitted to withdraw the company petition and as a consequence the scheme propounded by the applicants, unless the Intervenor were permitted to intervene in the company petition as well as company application. There is no difficulty in accepting the request of the Intervenor that they may be treated as party respondent to the present application and company petition. The fact remains that the applicants now intend to withdraw the scheme propounded by them. There is no tangible reason why the applicants can be prevented from withdrawing the scheme propounded by them. That request will have to be granted. 3. In so far as prayer clause (b) is concerned, the Official Liquidator points out that only an amount of Rs. 3,53,00,064/- has been deposited with the Official Liquidator. There is no dispute on this position. My attention has been invited to subsequent affidavit filed 3 by the applicants which states that balance amount out of Rs. 22,50,00,000/- (Rupees Twenty Two Crore Fifty Lacs Only) was deposited with the Prothonotary in terms of order dated 21st March, 2005. As the applicants are permitted to withdraw the scheme as requested by them, they would be entitled to withdraw this amount as well. The sponsorers of the scheme would be entitled for refund of the amount deposited by them in terms of order dated 21st March, 2005-either with the Official Liquidator or with the Prothonotary as the case may be. 4. Counsel appearing for the workers Union Shriniwas Girni Kamgar Kruti Samiti and representative union (Rashtriya Mill Mazdoor Sangh) would contend that out of the amount deposited by the sponsorers, part of the amount be retained towards the claim of the workers. It is not possible to accept this request. The workers would have been entitled for disbursal of their claim amount from the amount deposited only if the scheme was to be approved and acted upon. At present the applicants are not interested in pursuing the scheme as propounded. As and when some other scheme is finalised, the workers would be entitled to insist for disbursal of amount payable to them in proportion to be decided by the Official Liquidator. In the circumstances, the Official Liquidator as well as Prothonotary and Senior Master shall refund the amount deposited by the 4 sponsorers (Lodha Builders Pvt. Ltd.) in terms of order dated 21st March, 2005 alongwith interest accrued thereon, if any forthwith. 5. In so far as prayer clause (c) is concerned, Counsel for the State Bank of India submits that amount of Rs. 10 Crores is already refunded to the Lodha Builders Pvt. Ltd. However, this position is not accepted by the applicants as the statement is made across the bar. Be that as it may, if the amount is yet to be refunded by the State Bank of India, that be done as expeditiously as possible subject to compliance of necessary formalities. It is made clear that the applicants are not insisting for claim of interest accrued on the sum of Rs. 10 crores against State Bank of India as of now. It will be open to the sponsorers to pursue such other appropriate remedy for such claim, if so advised which proceedings will have to be decided on its own merits. Consequent to refund by the State Bank of India the original claim of the said Bank qua the Company in Liquidation shall stand revived for being considered on its own merits. 6. In so far as prayer clause (d) is concerned, the applicants through Counsel submits that this prayer is not pressed. 5 7. In the circumstances no further direction is required except the above observations made with reference to the respective prayer clause in the subject application. 8. Counsel for the Official Liquidator has brought to my notice that possession of movable and immovable properties of the company in liquidation as well as Books of Accounts are still in possession of the applicants. The applicants through Counsel undertake to hand over possession of all the books of accounts or properties of the company in liquidation to the Official Liquidator which was made over to the applicants in terms of order dated 20th April, 2005. That assurance is accepted. The process of handing over and taking over of the said items be completed within four weeks from today. The liberty to withdraw the abovesaid amount alongwith interest as aforesaid will be subject to compliance of return of books of accounts and/or properties of the Company in Liquidation to the Official Liquidator. 9. In so far as Intervenors M/s. Meghal Homes Pvt. Ltd, are concerned, all issues raised on their behalf with regard to the offer made by the applicants in cognate company application no. 1294/2007 or for that 6 matter the scheme propounded by the said Intervenors are left open to be decided at the appropriate stage on its own merits. 10. Accordingly, this application (Company Application No. 1473 of 2008) and company petition (Company Petition No. 315 of 2004) disposed of on the above terms. [A.M.KHANWILKAR,J.] [A.M.KHANWILKAR,J.] [A.M.KHANWILKAR,J.]