Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Recovery certificate issued Debts Recovery Tribunal credit facilities Textile Undertakings (Nationalisation) Act 1995 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Textile Undertakings (nationalisation) Laws (amendment and Validation) Act, 2014 (36 of 2014) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Textile Undertakings (Nationalisation) Act, 1995 – As per appellant-Bank, Shree Sitaram Mills Ltd. was taken over by respondent no.1 & nationalised w.e.f. 01.04.1994 – It enjoyed credit facilities with the appellant – Respondent no.2-Ministry was guarantor in respect of said credit facilities – Appellant filed recovery suit against respondent no.1 – Transferred to Debts Recovery Tribunal – Recovery certificate issued – However, recovery proceedings were adjourned sine die – Appellant submitted claim with Commissioner of Payment – Received Rs.1,59,82,634/- against claim of Rs.1,05,35,86,783.47/- – Meanwhile, Govt. of India issued O.M dated 22.01.2004 for settlement of commercial disputes between Public Sector Enterprises inter se; Public Sector Enterprises and Govt. Dept. through Permanent Machinery of Arbitrators (PMA) – Appellant requested initiation of arbitration with Union of India/ respondent no.2 – Sought recovery of balance sum from respondent no.1 and Shree Sitaram Mills Ltd. – By notice dated 17.10.2011, Arbitrator appointed under PMA directed the appellant, respondent no.1 & Shree Sitaram Mills Ltd. to submit statements of claim and counter reply – Respondent no.1 filed application for cessation of arbitral proceedings – Rejected by Arbitrator, PMA – Respondent no.1 filed writ petition assailing aforesaid notice and challenging jurisdiction of the Arbitrator – Dismissed – Filed LPA – Allowed – Held: Present examination is limited to the aspect relating to forum – Claim initially made by the appellant is against Shree Sitaram Mills Ltd. – Respondent no.1 is disputing the liability for the same by bringing about a distinction since the take-over was only of Shree Sitaram Mills (which was a part of Shree Sitaram Mills Ltd.) and not of Shree Sitaram Mills Ltd. – Thus, an adjudication on that aspect cannot be considered as a dispute involving only the two public sector establishments as contemplated under the O.M – Question of liability could neither have been decided in writ proceedings nor in this appeal – Impugned judgment to the extent it quashed notice dated 17.10.2011 warrants no interference – However, the conclusion that the respondents are not liable for the amount claimed by the appellant is set aside – Question of liability and the manner of recovery to be considered by appropriate forum – Textile Undertaking (Take-over of Management) Act, 1983 – Recovery of Debts Due To Banks and Financial Institutions Act, 1993. |
Judge | Hon'ble Mr. Justice Ajjikuttira Somaiah Bopanna |
Neutral Citation | 2020 INSC 282 |
Petitioner | Uco Bank |
Respondent | National Textile Corporation Ltd. & Anr. |
SCR | [2020] 4 S.C.R. 692 |
Judgement Date | 2020-03-05 |
Case Number | 2046 |
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