VIJAYA BANK Vs. MURUDESHWARA FOODS AND EXPORTS LTD

JUDGEMENT

(1.) THE proposed party M/s. Naveen Hotels Ltd., filed IA-16 for impleading it as party as additional defendant in the OA and that petition was allowed by the Tribunal. Aggrieved against the order the appellant Bank has come forward with this appeal.

(2.) Counsel for the appellant Bank submitted that M/s. Naveen Hotels is not at all a necessary party to the OA and the proposed party the 2nd respondent does not get any legal right over the Hosabettu Unit of the 1st respondent and the 3rd party the 2nd respondent claims as right under an unregistered agreement and the proposed party the 2nd respondent has not produced any document to show its ownership to claim right over the said property and the alleged charge said to have been registered by the Registrar of Companies on 25.8.1998 does not convey any legal right as all the movable and immovable properties are mortgaged in favour of the Bank and said charge could not have been registered on the basis of the alleged agreement and as the properties both movable and immovable have already been hypothecated and mortgaged in favour of the applicant Bank by the 1st respondent as security for the loans advanced in the year 1995-96, the proposed party does not get any right over the property and the order passed by the Presiding Officer, DRT, allowing the impleadment petition is not sustainable.

(3.) ON a perusal of the records, it is seen that in favour of IDBI a charge was created in respect of the plant and machinery alone on 29.12.1995. ONly in respect of machineries there was a charge in favour of IDBI by virtue of the Deed of Hypothecation dated 29.12.1995 as evidenced by the Search List filed. The IDBI has written letter to the 1st respondent stating that the loan due by the 1st respondent has been cleared. The 1st respondent has written letter to the IDBI stating that the 1st respondent has cleared loan due to IDBI along with interest through Naveen Hotels Ltd. the 2nd respondent by letter dated 19.9.1997. The 2nd respondent Naveen Hotels Ltd., has also written a letter to the IDBI stating that at the request of the 1st respondent they are enclosing cheque for Rs. 1,18,207/- towards the clearance of overdue liability of the 1st respondent and also request the IDBI to issue letter of confirmation that overdue amount of Murudeshwar Foods and Exports Ltd., is cleared by their Company. IDBI also has acknowledged the receipt of the cheque in its letter dated 25.3.1998 and has further stated that there are no dues payable to the IDBI in respect of the said account by the 1st respondent. So, it is evidenced from these documents that only plant and machinery were hypothecated to the IDBI and that the loan due to IDBI was cleared by the respondents.