ICICI BANK LTD Vs. SIDCO LEATHER
LAWS(SC)-2006-4-28
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on April 28,2006

ICICI BANK LTD. Appellant
VERSUS
SIDCO LEATHER LTD. Respondents





Cited Judgements :-

B VENU MADHAV VS. CH MOHANA RAO [LAWS(NCD)-2011-10-26] [REFERRED TO]
CENTRAL BANK OF INDIA VS. STATE OF KERALA [LAWS(SC)-2009-2-101] [REFERRED TO]
GUJARAT STEEL TUBE EMPLOYEES UNION VS. O L OF GUJARAT STEEL TUBES LTD [LAWS(GJH)-2012-8-128] [REFERRED TO]
JALGAON JANTA SAHAKARI BANK LTD. VS. JOINT COMMISSIONER OF SALES TAX [LAWS(BOM)-2022-8-121] [REFERRED TO]
TATA STEEL LTD. VS. OFFICIAL LIQUIDATOR [LAWS(CAL)-2007-12-58] [REFERRED TO]
LATABEN DEVANAND PANDIT VS. JADHAV R H [LAWS(GJH)-2007-12-110] [REFERRED TO]
JER RUTTON KAVASMANEK AND ANOTHER VS. GHARDA CHEMICALS LTD. AND OTHERS [LAWS(BOM)-2014-6-239] [REFERRED TO]
JOTUN INDIA PRIVATE LIMITED VS. PSL LIMITED [LAWS(BOM)-2018-7-178] [REFERRED TO]
GANV BHAVANCHO EKVOTT VS. SOUTH WESTERN RAILWAYS [LAWS(BOM)-2022-8-31] [REFERRED TO]
NAIR SERVICE SOCIETY VS. GOVERNMENT OF KERALA AND ORS. [LAWS(KER)-2015-4-18] [REFERRED TO]
A. MAHALINGAM VS. CHANCELLOR [LAWS(MAD)-2018-9-870] [REFERRED TO]
CHANNEGOWDA VS. N.S.VISHWANATH [LAWS(KAR)-2023-12-37] [REFERRED TO]
KARAMJIT SINGH VS. STATE OF PUNJAB & ORS. [LAWS(P&H)-2009-11-185] [REFERRED TO]
DHAR SPINNER P LTD VS. BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION [LAWS(MPH)-2010-1-56] [REFERRED TO]
Jay Engineering Works Ltd. VS. Industry Facilitation Council [LAWS(MPH)-2006-9-83] [REFERRED TO]
HARSHAD GOVARDHAN SONDAGAR VS. INTERNATIONAL ASSETS RECONSTRUCTION CO LTD [LAWS(SC)-2014-4-81] [REFERRED TO]
JIK INDUSTRIES LIMITED VS. AMARLAL V JUMANI [LAWS(SC)-2012-2-12] [REFERRED TO]
RAMDEV FOOD PRODUCTS PVT LTD VS. ARVINDBHAI RAMBHAI PATEL [LAWS(SC)-2006-8-82] [REFERRED TO]
NAHALCHAND LALOOCHAND PVT LTD VS. PANCHALI CO OPERATIVE HOUSING SOCIETY LTD [LAWS(SC)-2010-8-92] [REFERRED TO]
IN RE: SCIL INDIA LIMITED (IN LIQUIDATION) VS. STATE [LAWS(CAL)-2007-12-69] [REFERRED TO]
MINNIE KHADIM ALI KUHN VS. STATE NCT OF DELHI [LAWS(DLH)-2012-5-138] [REFERRED TO]
CHIEF EXECUTIVE OFFICER VS. CHANDRIKA BAI [LAWS(CHH)-2014-2-51] [REFERRED TO]
CRIPS LABORATORIES LTD VS. HIGH COURT OF A P [LAWS(APH)-2008-5-4] [REFERRED TO]
ENGINEERING WORKERS HIGH COURT BOMBAY ASSOCIATION VS. OFFICIAL LIQUIDATOR [LAWS(BOM)-2006-8-149] [REFERRED TO]
IDBI LIMITED VS. TEXTILE LABOUR ASSOCIATION [LAWS(GJH)-2019-2-189] [REFERRED TO]
GEETA VS. STATE OF U P [LAWS(SC)-2010-12-30] [REFERRED TO]
RESERVE BANK OF INDIA VS. JAYANTILAL N. MISTRY [LAWS(SC)-2015-12-41] [REFERRED TO]
BAJAJ AUTO LTD VS. WESTERN MAHARASHTRA DEVELOPMENT CORPORATION LTD [LAWS(BOM)-2015-5-50] [REFERRED TO]
MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY VS. FARE FIXATION COMMITTEE [LAWS(BOM)-2017-12-142] [REFERRED TO]
IDBI LTD HAVING ITS REGISTERED OFFICE AT IDBI TOWER W T C COMPLEX CUFFE PARADE MUMBAI-400 005 THROUGH ITS AUTHORIZED OFFICER B SRINIVASA RAO DEPUTY GENERAL MANAGER RECOVERY DEPARTMENT VS. OFFICIAL LIQUIDATOR HIGH COURT OF BOMBAY NAGPUR BENCH OF MAHARASHTRA EXPLOSIVES LTD [LAWS(BOM)-2011-6-86] [REFERRED TO]
IN RE: CRIPS LABORATORIES LTD. VS. STATE [LAWS(APH)-2008-5-20] [REFERRED TO]
SYNDICATE BANK VS. THE OFFICIAL LIQUIDATOR (SHREE MANJUSHA PAPER MILLS LIMITED) AND ORS. [LAWS(CAL)-2015-4-43] [REFERRED TO]
BANK OF INDIA VS. STATE OF GUJARAT [LAWS(GJH)-2020-1-189] [REFERRED TO]
M/S. TATA IRON & STEEL CO. LTD VS. M/S. JHALANI TOOLS INDIA LTD [LAWS(DLH)-2023-7-157] [REFERRED TO]
S N RAVINDRA AND ORS VS. PRATHIBA MADHUSUDHAN DAFTARI AND ORS [LAWS(KAR)-2012-10-317] [REFERRED]
BPV CLASSIC TEA FACTORY P LTD VS. CORPORATION BANK COONOOR [LAWS(MAD)-2007-6-27] [REFERRED TO]
EMPLOYEES PROVIDENT FUND COMMISSIONER VS. O L OF ESSKAY PHARMACEUTICALS [LAWS(SC)-2011-8-13] [REFERRED TO]
STATE OF TRIPURA VS. BIBHU KUMARI DEVI [LAWS(TRIP)-2020-1-6] [REFERRED TO]
SOBIN P.K. VS. DISTRICT GEOLOGIST, DEPARTMENT OF MINING AND GEOLOGY [LAWS(KER)-2019-12-393] [REFERRED TO]
PEGASUS ASSET RECONSTRUCTION P. LTD. VS. HARYANA CONCAST LTD. [LAWS(P&H)-2009-3-162] [REFERRED TO]
MRS. B. RAJARAJESHWARI VS. THE PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL [LAWS(MAD)-2017-1-196] [REFERRED TO]
INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LTD VS. OFFICIAL LIQUIDATOR [LAWS(MAD)-2011-1-42] [REFERRED TO]
EMPLOYEES PROVIDENT FUND COMMISSIONER VS. O L OF ESSKAY PHARMACEUTICALS LIMITED [LAWS(SC)-2011-11-39] [REFERRED TO]
IN RE: INTERPLAY BETWEEN ARBITRATION AGREEMENTS UNDER THE ARBITRATION AND CONCILIATION ACT 1996 AND THE INDIAN STAMP ACT 1899 VS. IN RE: INTERPLAY BETWEEN ARBITRATION AGREEMENTS UNDER THE ARBITRATION AND CONCILIATION ACT 1996 AND THE INDIAN STAMP ACT 1899 [LAWS(SC)-2023-12-20] [REFERRED TO]
TORRENT ENERGY LIMITED VS. STATE OF GUJARAT [LAWS(GJH)-2014-4-50] [REFERRED TO]
PREETI MESHRAM VS. HIMANSHU WASNIK [LAWS(CHH)-2019-9-84] [REFERRED TO]
IN RE: BPL DISPLAY DEVICE LTD. VS. STATE [LAWS(ALL)-2008-10-150] [REFERRED TO]
M K MODI VS. U K MODI [LAWS(DLH)-2010-5-65] [REFERRED TO]
DEBA PRASAD ROY VS. GOPA CHOWDHURY [LAWS(NCD)-2021-12-9] [REFERRED TO]
JAY ENGINEERING WORKS LTD VS. INDUSTRY FACILITATION COUNCIL [LAWS(SC)-2006-9-95] [REFERRED TO]
UNION OF INDIA VS. SICOM LTD [LAWS(SC)-2008-12-103] [REFERRED TO]
BANK OF MAHARASHTRA VS. PANDURANG KESHAV GORWARDKAR [LAWS(SC)-2013-5-25] [REFERRED TO]
IFCI LTD. VS. OFFICIAL LIQUIDATOR OF GUJARAT INJECT LTD. [LAWS(GJH)-2012-7-552] [REFERRED TO]
DAMODAR VALLEY CORPORATION VS. SHREE RAMDOOT ROLLERS PRIVATE LTD [LAWS(CAL)-2020-4-6] [REFERRED TO]
M.N.TRAPASIA VS. DIVISIONAL RAILWAY MANAGER [LAWS(GJH)-2022-2-1491] [REFERRED TO]
GANAPATI COMMERCE LTD VS. RECOVERY OFFICER DRT [LAWS(CAL)-2007-9-16] [REFERRED TO]
ANAR SINGH VS. STATE OF U P AND 3 OTHERS [LAWS(ALL)-2019-1-104] [REFERRED TO]
NOIDA EMPLOYEES ASSOCIATION AND ORS. VS. STATE OF U.P. AND ORS. [LAWS(ALL)-2019-3-312] [REFERRED TO]
BOARD OF TRUSTEES OF THE PORT MUMBAI VS. BARGE MADHWA AND ANR. [LAWS(BOM)-2020-5-11] [REFERRED TO]
JER RUTTON KAVASMANEK AND ANR. VS. GHARDA CHEMICALS LTD. AND ORS. [LAWS(BOM)-2011-6-221] [REFERRED TO]
CONTINENTAL CARBON INDIA LTD VS. MODI RUBBER LTD [LAWS(DLH)-2012-7-589] [REFERRED TO]
BHARAT HEAVY ELECTRICALS LIMITED VS. ARUNACHALAM SUGAR MILLS LIMITED [LAWS(MAD)-2011-4-174] [REFERRED TO]
INDIA SME ASSET RECONSTRUCTION COMPANY LTD. VS. CORPORATION BANK [LAWS(DR)-2014-3-3] [REFERRED TO]
INDIAN BANK VS. COMMERCIAL TAX OFFICER OFFICE OF CTO NAVALPUR RANIPET [LAWS(MAD)-2008-9-357] [REFERRED TO]
Regional Provident Fund Commissioner Karnataka No. 13, Bhavishyanidhi Bhavan P.B. No. 2534, Raja Ram Mohan Roy Road Bangalore-560025, The Assistant Provident Fund Commissioner (Enforcement) No. 13, Bhavishyanidhi Bhavan P.B. No. 2564, Employees Provident VS. [LAWS(KAR)-2011-10-98] [REFERRED TO]
UNION OF INDIA VS. S I C O M LTD [LAWS(SC)-2008-12-88] [REFERRED TO]
NORTH DELHI POWER LIMITED VS. GOVT OF NATIONAL CAPITAL TERRITORY OF DELHI [LAWS(SC)-2010-5-12] [REFERRED TO]
PASCHIMANCHAL VIDYUT VITRAN NIGAM LTD VS. RAMAN ISPAT PRIVATE LIMITED [LAWS(SC)-2023-7-40] [REFERRED TO]
U P STATE CEMENT CORPORATION LTD VS. STATE [LAWS(ALL)-2007-4-526] [REFERRED]
BANK OF RAJASTHAN LTD. VS. OFFICIAL LIQUIDATOR [LAWS(CAL)-2008-9-75] [REFERRED TO]
MESSER HOLDINGS LIMITED VS. SHYAM MADANMOHAN RUIA [LAWS(BOM)-2010-9-8] [REFERRED TO]
OFFICIAL LIQUIDATOR VS. BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION [LAWS(MPH)-2007-11-64] [REFERRED TO]
PRAVIN G. JOSHI VS. SAROJINI GANGADHAR [LAWS(NCD)-2022-2-16] [REFERRED TO]
SFL INDUSTRIES LTD. VS. RELIANCE CAPITAL LTD. AND ORS. [LAWS(P&H)-2015-4-328] [REFERRED TO]
A.NAVINCHANDRA STEELS PRIVATE LIMITED VS. SREI EQUIPMENT FINANCE LIMITED [LAWS(SC)-2021-3-2] [REFERRED TO]


JUDGEMENT

S.B.SINHA, J. - (1.)LEAVE granted.
(2.)INTERPRETATION of Sections 529 and 529-A of the Companies Act, 1956 is involved in this appeal, which arises out of a judgment and order dated 4/8/2004 passed by the High Court of Judicature at Allahabad in Special Appeal No.698 of 2002 affirming the judgment and order dated 24/5/2002 passed by a learned Singh Judge of the said Court.
The appellant herein is a Banking Company. It, along with Industrial Finance Corporation of India (IFCI) and Industrial Development Bank of India (IDBI), advanced the following amounts by way of loan to Respondent No.1 with a view to give financial assistance to it in setting up a plant for manufacture of leather boards : a) IDBI Rupee Term Loans of Rs.193.2 lacs and Foreign Currency loan of Italian Lira 1380900,000. b) IFCI Rupee Term Loans of Rs. 196.74 lacs, Central Investment subsidy of Rs.25 lacs and Foreign Currency loan of DM 2127,565. c) ICICI Rupee Term Loans of Rs.96.61 lacs and Foreign Currency loan of Italian Lira 1380900,000.

The Punjab National Bank (PNB) also advanced a loan to the said Respondent for providing working capital funds. The 1st Respondent, in order to secure the amounts lent to it, created a first charge in favour of the appellant along with other financial institutions, i.e., Respondent No.3 (IFCI) and Respondent No.4 (IDBI) herein by way pf equitable mortgage by deposit of title deeds of its immovable property. A second charge was created in favour of PNB by way of constructive delivery of title deeds remaining in deposit with Respondent No.3 herein, clearly indicating that the charge in favour of the latter was subject and subservient to charges in favour of IFCI, IDBI and ICICI.

(3.)ON an application for winding up of the 1 st Respondent made before the High Court of Judicature at Allahabad, an order was passed on 16-12-1993 directing its winding up whereupon an Official Liquidator was appointed. The borrowing facilities of the said Respondent had been terminated. A suit for recovery of the credited sum was filed by the appellant along with the Respondent Nos.3 and 4 herein against the 1st Respondent in the High Court of Judicature at Bombay, which was numbered as Suit No.2789/1995. The said suit was thereafter transferred to the Debt Recovery Tribunal, Bombay. Recovery proceedings are admittedly pending adjudication.
The Official Liquidator was one of the defendants. Liberty was granted by the Debt Recovery Tribunal to the appellant herein and the other respondents to obtain permission of the Company Court, i.e., High Court of Judicature at Allahabad to continue the prosecution of the said suit. Thereupon, an application under Section 446 of the Companies Act, 1956 was filed by the plaintiffs in the said suit stating that they were Secured Creditors and had decided to remain outside the winding up proceedings being desirous of realizing the Security in the suit. The permission to continue the proceedings in the said Suit No.2789/95 was granted by the High Court of Judicature at Allahabad on 30-8-1995. In the said suit, however, the Respondent No.2 herein, PNB, was not impleaded as a party.



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