In a recent legal case, the court analyzed the complexities surrounding a disputed debt and subsequent recovery proceedings. The focus of the court’s analysis lies in examining the legal implications of the alleged debt payment and its impact on the execution proceedings. Stay tuned to delve deeper into the nuanced legal analysis provided by the court in this intriguing case.
Facts
- The DRAT, Delhi disposed of the appeal by maintaining the attachment of shares held by appellant no.1 as XLO India Limited during the pendency of Appeal No.1/2020.
- The High Court of Judicature for Rajasthan at Jaipur dismissed the writ petition confirming the DRAT’s order passed in Appeal No.82/2020.
- Appeal No.1/2020 is pending consideration at the Debts Recovery Tribunal (DRT), Jaipur.
- The DRAT has directed that recovery proceedings will continue before the Recovery Officer.
- The Recovery Officer will aim to recover the decretal amount following the provisions of Section 25 of the Recovery of Debts and Bankruptcy Act, 1993.
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Arguments
- Respondent no.1 claims that approximately Rs.29 crores is due from appellant no.1.
- Appellant no.1 disputes this claim through their senior counsel.
- Appellant no.1 asserts that the alleged amount has been paid and the issue lies in the discharge of debt during execution proceedings.
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Decision
- Appellant no.1 to deposit a further sum of Rs.5 crores with the Presiding Officer, DRT, Jaipur within four weeks.
- Respondent no.1 permitted to withdraw the deposited amounts by the appellant (Rs.5 crores + Rs.1.53 crores with interest accrued + Rs.25 lakhs).
- Withdrawal by respondent no.1 without prejudice to their rights and subject to the outcome of the appeal.
- DRT, Jaipur directed to decide Appeal No.1/2020 within eight weeks.
- Order of attachment of shares held by appellant no.1 to continue until final disposal of Appeal No.1/2020.
- Recovery proceedings to be stayed until Appeal No.1/2020 is decided.
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Case Title: XLO INDIA LIMITED Vs. INTERNATIONAL ASSET RECONSTRUCTION COMPANY PVT. LTD. (2021 INSC 924)
Case Number: C.A. No.-006518-006518 / 2021
