Decided on November 21,2014

Arjun Gases Ltd. And Ors. Respondents


Ranjit Singh, J. (Chairperson) - (1.) ARJUN Gases Ltd. and others had filed S.A. No. 3/2008 to challenge the measures initiated by Indian Overseas Bank against the said company on account of a default on their part to repay the loan advanced by the Bank. The S.A. was filed on 31st December, 2007 when a sale notice dated 23rd November, 2007 was issued. Subsequent thereto, another sale notice came to be issued on 14th December, 2009 which was also made subject -matter of challenge by filing I.A. No. 52/2010 without making any amendment to the S.A. earlier filed against the sale notice dated 23rd November, 2007 or by filing any fresh S.A. The Tribunal below has considered the challenge to the sale notice dated 14th December, 2009 as well where even the sale of the properties which had taken place was also challenged. The record would show that sale of one property i.e. industrial plot No. M. 14, Industrial Area, Yamunanagar held pursuant to sale notice 23rd November, 2007 was challenged by Unique Timber Works in S.A. No. 72/2009 which was withdrawn after the purchase of the said property by Oberoi Wood Products Pvt. Ltd. pursuant to the second sale notice dated 14th December, 2009. The sale of second property Residential House No. 108 -A, Model Town, Yamunanagar in favour of Mrs. Shalini Goel also came to be challenged through I.A. 52/2010 which has also been set aside by the Tribunal below. Aggrieved against the order passed by the Tribunal, Indian Overseas Bank, Oberoi Wood Products Pvt. Ltd. Mrs. Shalini Goel have filed three separate Appeal Nos. 79/2013, 90/2013, 108/2013 respectively applicant Arjun Gas Ltd. has also filed one Appeal (Inward No. 171/2013) to impugn some part of the finding returned by the Tribunal below. Since challenge in all the Appeals is to the same order passed by the Tribunal below, may be on different counts, all the Appeals are being heard together and are being disposed by this common order.
(2.) THE Tribunal below without making any mention to the facts as pleaded in the application, straightaway commenced the impugned order by noticing the issues requiring adjudication in the S.A. filed by Arjun Gases Ltd. by observing that these would arise on the basis of hearing and of perusal of record. It is always appropriate to notice the facts pleaded which also helps the appellate and other authorities to understand the case properly and to examine the issue and so also to appreciate the reasoning in the decision rendered by the Tribunal. It is, therefore, considered appropriate to notice the facts, in brief, as were pleaded in the S.A. filed by the borrower, Since these Appeals have been filed by all the parties concerned, it would be appropriate to refer to parties as Bank, borrower, purchaser so as to avoid confusion.
(3.) THE Bank has sanctioned Cash Credit facility of Rs. 20 lacs. Term Loan facility of Rs. 2,74,500/ -, Cheque Purchase Limit of Rs. 2 lacs and deferred payment Guarantee for Rs. 25.50 lacs on 2nd May, 1994. The borrower had created an equitable, mortgage of land and building on plot No. M -14, Industrial Area, Yamunanagar and also another equitable mortgage of one House built on Plot No. 108 -A. Model Town, Yamunanagar. Besides, the borrower had also hypothecated truck, gas cylinders and stocks of other goods. Facilities were changed from time -to -time depending upon the business requirement. These facilities were further secured by equitable mortgage of plot at Hanuman Gate, Jagadhari. Total sanctioned facilities till 31st July, 2002 were to the extent of Rs. 2 crores. These facilities were restructured and reduced to Rs. 80 lacs during 2003 -04.;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.