CWP No.2683 of 2011.doc - 1 – HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH **** CM No.4858 of 2011 in/and CWP No.2683 of 2011 (O&M) Date of Decision: 01.04.2011 **** M/s. Telephone Cables Ltd. . . . . Petitioner VS. Industrial Finance Corporation of India . . . . Respondent **** CORAM : HON’BLE MR.JUSTICE SURYA KANT **** 1. Whether Reporters of local papers may be allowed to see the judgment? 2. To be referred to the Reporters or not? 3. Whether the judgment should be reported in the Digest? **** Present: Mr. Ashok Aggarwal, Senior Advocate and Mr. Girish Agnihotri, Senior Advocate with Ms. Geeta Sharma, Purti Marwaha and Mr. Vijay Pal, Advocates for the petitioner Mr. OP Goyal, Senior Advocate with Mr. Atul V Sood, Advocate for the respondent-caveator **** SURYA KANT J. (ORAL) (1). The petitioner seeks quashing of the order dated 15.06.2010 (Annexure P1) passed by DRAT vide which the petitioner had been granted exemption from depositing Rs.10 crores only till the disposal of the status quo application pending before the AAIFR. It also seeks a direction prohibiting the respondent from taking any coercive action in pursuance of the sale notice dated 15.01.2011. CWP No.2683 of 2011.doc - 2 – (2). The respondent being on Caveat, learned counsel for the parties were heard on 15.02.2011 and the following order was passed:- “Having heard learned counsel for the parties at some length on the prayer for interim relief and as agreed to by the petitioner, though reluctantly, it is directed that subject to the petitioner’s depositing a sum of Rs.3.50 crores with the respondent-Bank by tomorrow, i.e. 16.2.2011, followed by further payment of Rs.11.50 crores on or before 31.3.2011, the respondent- Bank shall be at liberty to open the tenders, however, the sale shall not be confirmed. Since the respondent is said to have obtained consent of more than 75% of the secured creditors, apportionment of the amount to be paid/deposited by the petitioner amongst the ‘secured creditors’ shall be an internal affair between the respondent and other ‘secured creditors’. The contention of Mr. OP Goyal, learned senior counsel for the respondent that as an interim measure the petitioner should be directed to pay not less than Rs.25.00 crores, is kept open and shall be considered at an appropriate stage. In the event of the petitioner’s honouring the above stated schedule of payment before 28.3.2011, the Debt Recovery Tribunal-I, Chandigarh shall make an endeavour to decide the SA filed by the petitioner on the date fixed or soon thereafter. However, if the petitioner deposits the amount by 31.3.2001 only, the Debt Recovery Tribunal-I, Chandgiarh shall decide the case CWP No.2683 of 2011.doc - 3 – as early as possible and preferably in the month of April, 2011.” (3). It is not in dispute that pursuant to the above-reproduced order, the petitioner did deposit a sum of Rs.3.50 crores with the respondent-Bank before 16.02.2011 but concededly no further amount was deposited. The petitioner has today moved an application. inter alia, seeking disposal of the writ petition as having become infructuous on the plea that respondents have received no bid and for the present the cause of action does not survive. The petitioner also seeks a direction to the respondents to refund Rs.3.50 crores deposited by it under the directions of this Court. (4). Having heard learned counsel for the parties, I am of the considered view that the first prayer of the petitioner may be allowed and the writ petition can be disposed of as having become infructuous as according to the petitioner no cause of action survives as on date. (5). Ordered accordingly. (6). As regards the second prayer no direction for the refund of the amount deposited by the petitioner need be made for the admitted fact that the petitioner is under heavy debts and it being a defaulter, according to the CWP No.2683 of 2011.doc - 4 – respondent, is liable to pay more than Rs.37 crores (though disputed by the petitioner). (7). The writ petition and the accompanying application are disposed of accordingly. (8). Dasti . 01.04.2011 vishal shonkar (S u r y a K a n t) Judge