Explore the recent Supreme Court judgement in the case involving Alchemist and KMBL. The Court has made a significant decision regarding the payment and dues between the two parties. Dive into the details of the case to understand the legal aspects at play.
Facts
- KMBL filed proceedings for recovery of its dues before the Debts Recovery Tribunal, Delhi.
- Alchemist initiated proceedings under Section 13 of the SARFAESI Act.
- The sale of property by Alchemist for Rs.13.50 crores was contested by KMBL.
- Alchemist denies the allegation of selling the property in a clandestine manner.
- Out of Rs. 5 crores in deposit, Rs. 3 crores to be paid to Alchemist and Rs. 2 crores to KMBL as per High Court order.
- After the property sale by Alchemist, Alchemist to pay Rs. 4.5 crores to KMBL and receive Rs. 9 crores.
- Surplus amount beyond Rs. 13.5 crores to be deposited in the High Court for further disbursement.
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Analysis
- Alchemist filed an application in February, 2017 before the High Court for modification of the interim order dated 09.08.2011, pursuant to the order dated 02.07.2014 passed by this Court.
- Alleged contemnors cannot benefit from the order of this Court dated 02.07.2014 allowing them to approach the High Court.
- Alchemist claims entitlement to recover 98.12% of the total outstanding proceedings as assignee of IFCI and IDBI, while KMBL claims 1.88% or alternatively, 9.76% as per its filed claim.
- KMBL contends Alchemist has already been paid Rs. 2 crores in excess of the amount due to it.
- The earlier order directing Rs. 4.5 crores to KMBL and retaining Rs. 9 crores by Alchemist, with excess amount to be deposited in Court, has not been modified or varied.
- Alchemist did not comply with the High Court and this Court’s orders regarding payment to KMBL from the sale of borrowed Company’s properties.
- KMBL requested details of the sale and the Rs. 4.5 crores due to it, which were not paid leading to the Contempt Petitions.
- On 08.02.2019, Alchemist was directed to deposit Rs. 4.5 crores in this Court.
- KMBL accuses Alchemist of contempt for not paying the amount as per the order dated 07.05.2012.
- Alleged contemnors claim they are not guilty of wilful disobedience and provide no explanation for the delay in filing the application.
- Alchemist filed the application before the High Court in February, 2017 despite being given liberty to do so in 02.07.2014.
- The Court directs the amount of Rs.4.5 crores deposited by Alchemist to be paid to KMBL along with any accrued interest.
- The payment is subject to the High Court’s decision on the actual amount due to KMBL.
- If the High Court determines a lesser amount due, KMBL must refund the excess amount along with any interest to Alchemist.
- No action under the Contempt of Courts Act against the alleged contemnors is deemed necessary as they have complied with the Court’s order by depositing the amount.
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Decision
- The Contempt Petitions are closed
- The terms of the closure are specified
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Case Title: KOTAK MAHINDRA BANK LTD Vs. SANJIV GUPTA
Case Number: CONMT.PET.(C) No.-000847-000848 / 2017
