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The Authorized Officer Uco Bank v. M/s. IAA Hospital Pvt. Ltd. & Ors.

November 26, 2021
Civil Appeal No. 5491 of 2015

Execution — Recovery of debt — Respondent Company, running hospital, had borrowed a substantial amount from UCO Bank, which it could not pay — Entire hospital premises of the said borrower had been auctioned — Appellant had offered the highest bid of Rs 23.06 crores at the said auction — High Court set aside the sale and directed the Creditor-Bank to repay the consideration received by the Bank to appellant who was highest bidder — Borrower had also created a charge on a residential plot, which had also been auctioned for highest amount of Rs 78.75 lakhs — Said auction sale was also set aside by High Court with direction to creditor/Bank should repay the said amount along with simple interest @ 9% to bidder — Appellant, who was highest bidder, was prepared to offer more amount for purchase of the hospital — Sum of Rs 1,45,54,404.91 was payable by respondent borrower — Said amount had been arrived at after giving credit of certain amount of interest, as the borrower had become an NPA — To bring an end to the entire litigation and see that the lender/Bank gets the amount, direction that a further sum of Rs 4 crores be paid by appellant to the lender/UCO Bank — Further direction issued that instead of paying 9% interest on the amount paid by bidder, in all a sum of Rs 1,25,00,000 shall be paid by UCO Bank — Civil Procedure Code, 1908 — Or. 21 Rr. 64 and 65 — Constitution of India, Art. 132                                                                              (Paras 10 to 16)

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(Anil R. Dave and Kurian Joseph, JJ.)


 


Civil Appeal No. 5491 of 2015


[Arising out of SLP (C) No. 22570 of 2014]


 


M/s. Ludhiana Mediways _______________ Appellant


 


v.


 


M/s. IAA Hospital Pvt. Ltd. & Ors. _________ Respondent(s)


 


With


 


Civil Appeal No. 5492 of 2015


[Arising out of SLP (C) No. 27485 of 2014]


 


The Authorized Officer Uco Bank _____________ Appellant


 


v.


 


M/s. IAA Hospital Pvt. Ltd. & Ors. _____________ Respondent(s)


 


Civil Appeal No. 5491 of 2015 (Arising out of SLP (C) No. 22570 of 2014) and Civil Appeal No. 5492 of 2015 (Arising out of SLP (C) No. 27485 of 2014), decided on July 21, 2015


 


The Judgement of the court was delivered by


Anil R. Dave, J.


 


1. Heard the learned counsel.


 


2. Leave granted in both the petitions.


 


3. At the request of the learned counsel for the parties, both the appeals have been heard together, especially when the facts of both the appeals are similar.


 


4. Looking at the peculiar facts and chequered history of these cases and so as to avoid further litigation, exercising our powers under Article 142 of the Constitution of India, we would like to pass the following order after indicating necessary facts:


 


5. M/s. IAA Hospital Pvt. Ltd. had borrowed a substantial amount from UCO Bank, which it could not pay and therefore, ultimately the entire hospital premises of the said borrower had been auctioned. M/s. Ludhiana Mediways had offered the highest bid of Rs. 23.06 crores at the said auction.


 


6. Before the Punjab & Haryana High Court at Chandigarh in C.W.P. No. 17785 of 2012, validity of the said auction had been challenged. The High Court has set aside the sale and has directed the Creditor-Bank to repay the consideration received by the Bank to M/s. Ludhiana Mediways.


 


7. Being aggrieved by the judgment delivered by the High Court dated 11th July, 2014, in C.W.P. No. 17785/2012, these two appeals have been filed, one appeal is by M/s. Ludhiana Mediways, who had offered the highest price – Rs. 23.06 crores and another appeal by the Authorized Officer of UCO Bank, the creditor.


 


8. It is pertinent to note that the borrower, M/s. IAA Hospital Pvt. Ltd. had also created a charge on a residential plot situated in Jalandhar, which had also been auctioned on 31.3.2012. Shri Amrik Chand had offered Rs. 78.75 lakhs for the said property, which was the highest.


 


9. The afore-stated auction sale in favour of Shri Amrik Chand has also been set aside by the High Court by its impugned order and it has been directed that the creditor-Bank should repay the said amount along with simple interest @ 9% to Shri Amrik Chand.


 


10. Upon hearing the concerned parties, we had enquired from the highest bidder, namely, M/s. Ludhiana Mediways, whether it was prepared to offer more amount for purchase of the hospital and the reply was positive.


 


11. Upon perusal of the accounts submitted by the Creditor-Bank, we find that as on 21st October, 2014, a sum of Rs. 1,45,54,404.91 (Rupees One Crore Forty Five Lakhs Fifty Four Thousand Four Hundred Four and ninety one paise), was payable by M/s. IAA Hospital Pvt. Ltd. -borrower. The said amount had been arrived at after giving credit of certain amount of interest, as the borrower had become an NPA.


 


12. As stated hereinabove, so as to bring an end to the entire litigation and see that the lender/Bank gets the amount, we direct that a further sum of Rs. 4 crores (Rupees Four Crores only) be paid by M/s. Ludhiana Mediways to the lender – UCO Bank, within four months from today.


 


13. Mr. Amrik Chand, who is Respondent No. 4 in both the appeals and who had offered the highest bid of Rs. 78.75 lakhs for the residential plot in Jalandhar, is to be returned the said amount, along with 9% simple interest thereon, as directed by the High Court in its impugned order.


 


14. We direct that instead of paying 9% interest on the amount paid by Shri Amrik Chand, in all a sum of Rs. 1,25,00,000/- (Rupees One Crore Twenty Five Lakhs only) shall be paid by UCO Bank to Shri Amrik Chand, within four months from today.


 


15. If the amount payable by M/s. Ludhiana Mediways is not paid within 4 months from today, as directed hereinabove, Dr. Nitin Agarwal, who is also keen to purchase the hospital and has filed his caveat in both the appeals, would have liberty to purchase the said property upon payment of Rs. 30 Crores (Rupees Thirty Crores) to UCO Bank and from the said amount of Rs. 30 Crores, a sum of Rs. 23.06 shall be returned to M/s. Ludhiana Mediways. In that event, Dr. Agarwal shall have control over the entire hospital as an owner.


 


16. In view of the afore-stated arrangement, the entire amount due and payable by M/s. IAA Hospital Pvt. Ltd. in respect of A/c No. 01040610002308, shall be deemed to have been paid and settled and UCO Bank shall return all the documents which might have been lodged with it in respect of the afore-stated loan account, unless there is any other charge on the said properties in respect of any other debt.


 


17. Shri Amrik Chand shall return the residential plot, which is in his possession, to the Bank on receipt of the amount, which is payable by the Bank to Shri Amrik Chand. Within a fortnight from the date of getting possession of the plot in question, the Bank shall hand over the plot to M/s. IAA Hospital Pvt. Ltd. through its Director and there shall not be any charge over the said plot in respect of the afore-stated loan account.


 


18. In view of the above arrangements and directions, the impugned judgment stands modified and both the appeals are allowed with no order as to costs.


 


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