The Supreme Court dismissed a plea of extension of time for a period of a week sought by a woman to deposit Rs 8.3 crore with the registry of Supreme Court.
The court was of a view that despite the undertaking given by Mallika Gunasekaran before the Apex Court akin to deposit of payment of Rs 8.3 crore, failed to comply with its own undertaking, thus not deposited any amount out of Rs 8.3 crore, in view of High court order dated April 15, 2021.
On account of the demise of the husband of Mallika Gunasekaran, the Petitioner could not deposit a hefty amount as stated by Anish Shah, Counsel of Petitioner. Suresh Dutt, Counsel for respondent appeared on behalf of Phoenix Arc Private Limited.
However, the bench perusing the facts and evidence on record, found the conduct of Mallika Gunasekaran perverse before the Debt Recovery Tribunal, Debt Recovery Appellate Tribunal and Madras High Court.
Four Writ petitions were filed before Madras High court seeking quashing of order dated April 28, 2015 of DRAT, Chennai and in respect to Assignment deed executed by Axis Bank in favour of Phoenix Arc Private Limited. On the other hand, a Writ Petition was also filed on behalf of Phoenix Arc Pvt Ltd for issuing directions requiring assistance from advocate commissioner and restrain GKK Exports Private Limited, Taurus GKK Leathers Private Limited, and Mallika Gunasekharan.
The High Court dismissed one of the grounds in writ Petition raised by Mallika Gunasekaran (Herein ‘Borrower’) ,held that as far as the deed of assignment is concerned, there is no law that requires the borrower to be given notice by the creditor or the borrowers permission being sought by the creditor before the creditor can assign the debt due from the borrower to any other.
The High Court also directed the Mallika Gunasekaran, MSG Bhuvan Kumar to jointly and severally pay the cost of Rs five lakh to Axis bank and no part of the costs awarded should be adjusted against any interest or principal sum that may be found due from the borrowers to the assignee.
The High Court of Madras disposed of the Writ Petition of Phoenix Arc Pvt Ltd affirm the order of Chief Metropolitan Magistrate and directed the Phoenix Arc Private Ltd to approach the same Chief Metropolitan Magistrate for such authority to issue any further directions or notice to the revenue officials at the block or taluk level to ensure that the possession of the relevant immovable property is made over to the assignee, for the assignee to take steps in respect thereof in accordance with the law. The Chief Metropolitan Magistrate will direct such police assistance as may be adequate for such purpose, and ensure that the possession of the secured asset is obtained by the assignee within six weeks of a copy of this order being presented before the appropriate Chief Metropolitan Magistrate.
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The Gist of the case is as follows –
There are 2 companies and some private individuals along with the bank and assigning of debt due to such bank. Credit facilities were obtained by the two companies in 2006 and 2009, the limits being Rs 5 crore and Rs.1.5 crore respectively. Common security was furnished by a guarantor, who was the principal person in control of both the companies. By or about September 13, 2010, both the accounts were classified as nonperforming assets and notices were subsequently issued to the principal debtors and the guarantor, but to no avail. In anticipation that the NPA declaration was coming, the companies resorted to the age-old trick of declaring themselves sick within the meaning of the then Sick Industrial Companies (Special Provisions) Act, 1985. ILNS/KY/RJ