GANGAVATHI SUGARS LTD Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE Bank filed IA-3/2002 before the DRT, Bangalore, for directing the 1st defendant to deposit 50% of the sale proceeds of the sugar and molasses to the applicant. THE Tribunal by its order dated 16.5.2002 allowed the application by directing the appellant to deposit 30% of the sale proceeds to the applicant Bank.

(2.) Counsel for the appellant submits that even 30% of the sale proceeds cannot be deposited to the Bank since the appellant has to incur statutory liability by paying taxes, wages to workers and payment to cane growers and even the sale proceeds would not be sufficient to meet those expenses and so the order passed by the PO, DRT, has to be set aside. He further submitted that the respondent Bank filed the petition for deposit of 50% of the sale proceeds of the sugar under Section 19(12) of the RDDB & FI Act and the petition itself is not maintainable under that section. Section 19(12) reads as follows:

(3.) UNDER Section 19(20) of the Act, the Tribunal may after giving the applicant and the defendant an opportunity of being heard, pass such interim or final order, including the order for payment of interest from the date on or before which payment of the amount is found due up to the date of realisation or actual payment, on the application as it thinks fit to meet the ends of justice. The Tribunal is empowered to pass such interim or final order after giving opportunity to both the parties as it deems fit to meet the ends of justice. UNDER the provisions of the RDDB & FI Act, the DRT has passed interim order. So, it cannot be stated that the petition itself is not maintainable. The petition filed by the applicant Bank is maintainable.