1 board for industrial and financial reconstruction bench iii case no ...

Case No.93/1987
M/s Alluminium Industries Ltd
10.1 A Mis c. Applica tion da ted 17.8.2009 h a vin g regis tra tion No.
104/ BC/ 09 h a s been filed by M/ s . Prith vi As s et Recon s tru ction a n d
Secu ritis a tion Com pa n y Ltd. (PARAS), wh erein it h a s been s ta ted th a t Ba n k
of Ba roda , a s ecu red creditor, vid e a n As s ign m en t Agreem en t da ted
1.10.2008 a s s ign ed a ll its debts du e from th e com pa n y a lon g with th e
com pa n y s a s s ets to th e a pplica n t ARC, wh o is n ow en titled to ta ke a ll a n d
every a ction to recover th e a m ou n t du e from M/ s .Alu m in iu m In du s tries Ltd.
(AIL). It h a s been fu rth er s ta ted th a t Sta te Ba n k of Tra va n core (OA) is a ls o
on e of th e s ecu red creditors of th e s ick com pa n y a n d th e com pa n y h a s
s ettled th eir ou ts ta n din g du es to SBT u n der On e Tim e Settlem en t (OTS).
However, Sta te Ba n k of Tra va n core h a s tra n s ferred th e s a id extin gu is h ed
lia bility a n d th e secu rities to a th ird pa rty i.e. Kota k Ma h in dra Ba n k Ltd.
u n der th e gu is e of a n a s s ign m en t, wh ich is n ot perm is s ible u n der th e
Tra n s fer of Property Act. Sta te Ba n k of Tra va n core h as also not provided the
va lu a tion of th e com pa n y s a s s ets des pite in s tru ction s by th e BIFR. An
a ppropria te va lu a tion is , th erefore, es s en tia l for determ in a tion of th e is s u es
pen din g before th e Boa rd. Th e a pplica n t ARC (PARAS) h a s pra yed in th e
M.A. for the following:-
i) To direct th a t th e th ird pa rty tra n s feree i.e. Kota k Ma h in dra Ba n k Ltd . is
not a secured creditor.
ii) To appoint an independent Government approved reputed valuer to value
the assets of the company.
10.2 In th e Mis c. Applica tion (No.104/ 2009) h ea rin g h eld on 15.9.09 to
con s ider th e M.A., th e Ben ch directed th a t th e M.A. will be h ea rd with th e
m a in ca s e fixed for h ea rin g on 29.9.09. M/ s .PARAS s h a ll s erve a copy of
th eir M.A. on a ll th e con cern ed pa rties in clu din g KMBL a n d Ba n k of
Baroda.
11. In th e h ea rin g h eld on 22.12.09, the Bench obs erved th at th e
com pan y h ad obtained cons en t of arou nd 60% of its s ecured cred itors . The
com pan y h ad y et to s ettle w ith PNB, Can ara Ban k and PARAS , repres en ting
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