1 IN IN IN THE HIGH COURT OF JUDICATURE OF BOMBAY THE HIGH COURT OF JUDICATURE OF BOMBAY THE HIGH COURT OF JUDICATURE OF BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION COMPANY APPLICATION NO.922 OF 2008 IN COMPANY PETITION NO.1180 OF 2002 WITH COMPANY PETITION NO.813 OF 2003 Bharat Heavy Electricals Ltd. ..Petitioner Dhir & Dhir Asset Reconstruction & Securitisation Co. Ltd. ..Applicant. V/s. Official Liquidator of Madras Petrochem Ltd.(in liqn.) & Anr. ..Respondents. Mr.Rishabh Shah i/b. M/s. Raval Shah & Co. for applicant. Mr.Aruna Pai, O.L. present. Mr.S.Ramakanta, Dy. O.L. Mr.M.D.Kode i/b. Law Point for original Petitioner. CORAM: CORAM: CORAM: A.M.KHANWILKAR,J A.M.KHANWILKAR,J A.M.KHANWILKAR,J DATE DATE DATE : NOVEMBER 20, 2008. : NOVEMBER 20, 2008. : NOVEMBER 20, 2008. P.C. P.C. P.C. : : : 1. Heard Counsel for the parties. 2. This Application is filed by Dhir & Dhir Asset Reconstruction and Securitisation Company Ltd. It is not in dispute that the Applicant has been issued certificate for the purpose of Securitisation Act and is entitled to pursue remedy with regard to assigned or mortgaged assets under the special provisions of the Securitisation Act. The fact that 2 land bearing old Survey No.218/1.A.2(New Survey No.275/1) admeasuring 30 acres(about 12 Hectares), Old Survey No.218/1.A.1.B(New Survey No.275/2) admeasuring 23.67 acres(about 10 Hectares) and bearing old Survey No.218/1.A.1.A2 admeasuring 2.07 acres and Survey No.220/1A.3C(New Survey No.275/3) admeasuring 0.02 acres, all in total admeasuring 55.76 acres, situated at Village Manali, Taluka & Registration Sub District of Tiruvottiyar, District Chingleput, Madras in the State of Tamil Nadu, was placed under charge in favour of Bank of India and Indian Bank alongwith other secured creditors. It is also noticed from the record that Bank of India and Indian Bank, IDBI have assigned the mortgage in relation to the said assets of the Respondent company in favour of the Applicant herein. As aforesaid, the Applicant is entitled to pursue the matter under special provisions of Securitisation Act. The argument of the Company in liquidation that the decision of the AAIFR has been challenged before the Supreme Court or that the assignment in favour of the Applicant is not valid cannot be the basis to answer the present application. In that, even if AAIFR order was to be set aside, the fact remains that the property in question have been mortgaged to Bank of India, Indian Bank and IDBI. Those banks in their own rights were entitled to proceed against the 3 property of the company in liquidation under special provisions before DRT. The said Secured Creditors however, have assigned their rights and mortgaged in relation to the said assets of the Company in liquidation in favour of the Applicant which has been registered under the provisions of Securitisation Act and therefore, entitled to proceed against the properties in question under special provisions of the said Act. Similarly, the question whether the assignment in favour of the Applicant is valid or not is a matter which will have to be addressed before the appropriate forum. In the event, the Applicant resorts to the said proceedings under the special provisions of Securitisation Act, that question can be examined in the said proceedings. All aspects in that behalf are left open to be decided on its own merits by the appropriate forum. 3. Taking overall view of the matter, the applicants are entitled for reliefs in terms of prayer clause (c) which reads thus: (c) That the order dated 30.08.2007 be recalled/modified/clarified to the extent that the Official Liquidator/Respondent, is not entitled to take possession of land bearing old Survey No.218/1.A.2 (New Survey No.275/1) admeasuring 30 acres (about 12 Hectares), Old Survey No.218/1.A.1.B.(New Survey No.275/2) admeasuring 23.67 acres (about 10 Hectares) and bearing old Survey No.218/1.A.1.A2 admeasuring 2.07 acres and 4 Survey No.220/1A.3C (New Survey No.275/3) admeasuring 0.02 acres, all in total admeasuring 55.76 acres, situated at Village Manali, Taluka & Registration Sub District of Tiruvottiyar (formally in the Taluka & Registration Sub District of Saidpet), District Chingleput, Madras in the State of Tamil Nadu, on which charge was created in favour of Bank of India and Indian Bank alongwith other secured creditors." 4. It is however, made clear that the Applicant would be obliged to bring back the amount, as may be quantified by the Official Liquidator out of the sale proceeds of the assets in question for disbursal in terms of Section 29-A of the Companies Act within four weeks from the date of intimation given by the Official Liquidator to the Applicant in that behalf. 5. This observation however, presupposes that the Order of winding up of the Respondent company passed by this Court is required to be taken to its logical end. If that order is to be overturned, this observation will be of no avail. 6. Application disposed of on the above terms. (A.M.KHANWILKAR,J) (A.M.KHANWILKAR,J) (A.M.KHANWILKAR,J)