VENTURES INDIA LIMITED Vs. INDUSTRIAL DEVELOPMENT BANK OF INDIA
LAWS(DR)-2003-12-11
DEBTS RECOVERY APPELLATE TRIBUNAL
Decided on December 15,2003

Appellant
VERSUS
Respondents

JUDGEMENT

Harihar P.Chaturvedi, - (1.)THE case is fixed for passing orders in M.As. 98 and 99 of 2002 pursuant to the direction of the Hon'ble High Court in Civil Revision Petition No. 1895/2003 dated 12.9.2003 received on 16.11.2003 directing this Court to dispose of the said M.As. within a period of one month.
(2.)In the present M.As., the argument of the Counsels for the both the parties were heard on 5.12.2003 and the Bank has also filed common counter in both the M.As. and opposed the relief sought for therein.
In the present M.As., the petitioner/defendant M/s. Ventures India Limited (represented by its Managing Director Mr. G.D. Ranga) has raised some legal issue and prayed for setting aside the ex parte final order passed by this Court on 29.3.2000 in O.A. 219/99 and to stay all the recovery proceedings pending therein.

(3.)THE grounds raised by the petitioner in present petitions are that the petitioner company has now been converted into a Public Limited Company hence the decree/final order passed by this Court against the company cannot be enforced as the assets belongs to a public limited company while the final order was passed only against a private limited company and Recovery Officer is going to auction the property of the company which is now public limited. THE company took further ground that this Court has passed final order on 29.3.2000 while a liquidation proceeding was pending before the High Court and in fact the Hon'ble High Court of Madras had passed an order for appointment of provisional liquidator on 31.3.2000 in company petition No. 7/98 on a petition filed as one New Globe Air Services Limited v. Vestures India Limited. Hence it was not within the jurisdiction of this Court to pass even an ex pane decree during the pendency of the above said liquidation petition with the company Court. In fact, the OL was a necessary party to the present O.A. THE company took this further plea that being aggrieved by this winding-up order, the company preferred a company appeal and got set aside the ex parte order dated 29.3.2000. As the Division Bench of the High Court was pleased to set aside the winding-up order. THEreafter only the D1 company could come into legal existence to file the present IA for setting aside the final ex parte order passed by this Court. Before that the D1 company could not file such petition as then it was being represented by the provisional official liquidator. THE defendant company has taken further plea that the company was set ex parte on 1.7.1999 by the order of the Registrar of this Tribunal. It is further contented that the Registrar has been conferred no such power under the act to pass a judicial order. Hence the ex parte order is in nullity. THErefore, the ex parte order passed by this Tribunal dated 29.3.2000 must be set aside and D1 company should be given a fresh opportunity to contest the case on merit. THE recovery certificate issued should also be quashed.


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