STATE BANK OF INDIA Vs. GONDWANA PAINTS AND MINERALS LIMITED
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS is an application for recovery of Rs. 22,48,323/- with interest @ 18% per annum with quarterly rests.
(2.) During the pendency of the O.A. 1st defendant's immovable property has been sold and sale proceeds of Rs. 22 lakhs have admittedly been deposited with the applicant Bank on 7.4.2005. The O.A. thus remains for recovery of Rs. 48,323/- with interest thereon and for recovery of interest on Rs. 22 lakhs from the date of the O.A. till 6.4.2005.
The 1st defendant was incorporated in 1946 as Joint Sector Unit by Government of Madhya Pradesh and Shukla family. The share of Government of M.P. stood subsequently transferred to the Government of Maharashtra. The Management of the unit was in the hands of Shukla till 1961 after which the unit was given to the Khandelwal family for 10 years. Thereafter, possession of the assets of the company situated at Kamptee was handed over at the instance of Government of Maharashtra to defendant No. 2 on lease for 10 years at lease rentals of Rs. 25,000/- per annum. The defendant No. 2 (set up in the year 1970 with a view to promote, encourage and growth and development of industries and industrialization in Vidarbha region) in turn constituted Paints Division to take over said assets.
(3.) IN May 1978, the applicant granted cash credit limit of hypothecation of stock of Rs. 45,000/- to the defendants. 1st defendant became subsidiary of defendant No. 2 in December 1978. The 1st defendant company in its meeting held on 29.12.1978 accepted 2nd defendant's proposal to accept assets and liabilities created by it (defendant No. 2). The working capital limits of Rs. 2.25 lakhs was sanctioned by the applicant on 15.1.1979 to defendant No. 2's Paint Division. The same was transferred in favour of defendant No. 1 at the request of both the holding company (defendant No. 2) and its subsidiary (defendant No. 1),;
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