Magma Fincorp Ltd. Vs. Kgn Iron Ores (P) Ltd. and anr. - Court Judgment

Excerpt:
the court :-report filed by the receiver is taken on record. it is submitted on behalf of the respondents that it was notified by them to the petitioner that some parts of the equipment were stolen in september 2009 and that a first information report was also lodged. further, by their letter dated 3rd september, 2010 they informed the petitioner that the equipment was lying at serajuddin mines, berbil, p.s. bamebari, district- keonjhar, orissa. it is more or less admitted that as of now rs.7,50,000/= has fallen due. further, arbitration proceedings have commenced. therefore, if this sum of rs.7,50,000/= is liquidated by the respondent in ten equal monthly installments of rs.75,000/= each, the receiver will not take any steps in terms of the order dated 15th july, 2010. each installment is to be paid by the seventh of the month beginning from september, 2010. this will, however, not absolve the respondents from liability to pay the current installments. in default of payment of any of the above installments or any current installment, the petitioner will be at liberty to apply for vacation of this order either in this application or by way of a fresh section 9 application and for enforcement of the interim order passed in this application, which is kept in abeyance because of this payment order. however, order of injunction will continue till disposal of the arbitration proceedings. this application is, accordingly, disposed of. receiver and all parties concerned are to act on a signed photocopy of this order on the usual undertakings.

Judgment:
The Court :-Report filed by the Receiver is taken on record. It is submitted on behalf of the respondents that it was notified by them to the petitioner that some parts of the equipment were stolen in September 2009 and that a First Information Report was also lodged. Further, by their letter dated 3rd September, 2010 they informed the petitioner that the equipment was lying at Serajuddin Mines, Berbil, P.S. Bamebari, District- Keonjhar, Orissa. It is more or less admitted that as of now Rs.7,50,000/= has fallen due. Further, arbitration proceedings have commenced.

Therefore, if this sum of Rs.7,50,000/= is liquidated by the Respondent in ten equal monthly installments of Rs.75,000/= each, the Receiver will not take any steps in terms of the order dated 15th July, 2010. Each installment is to be paid by the seventh of the month beginning from September, 2010.

This will, however, not absolve the respondents from liability to pay the current installments. In default of payment of any of the above installments or any current installment, the petitioner will be at liberty to apply for vacation of this order either in this application or by way of a fresh Section 9 application and for enforcement of the interim order passed in this application, which is kept in abeyance because of this payment order.

However, order of injunction will continue till disposal of the arbitration proceedings. This application is, accordingly, disposed of.

Receiver and all parties concerned are to act on a signed photocopy of this order on the usual undertakings.