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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

ON THE 22ND DAY OF JANUARY 2016

PRESENT

HON'BLE MR.SUBHRO KAMAL MUKHERJEE, ACTING CHIEF JUSTICE

AND

HON'BLE MR.JUSTICE RAVI MALIMATH

WRIT PETITION NO.843 OF 2016 (GM-DRT)

BETWEEN

KINGFISHER FINVEST INDIA LIMITED

UB TOWERS, LEVEL 12, UB CITY, 24
VITTAL MALLYA ROAD
BENGALURU-560 001, REP BY
P.SUBRAMANI, DIRECTOR OF KFIL
... PETITIONER

(BY SRI SAJAN POOVAYYA, SENIOR ADVOCATE FOR

SRI PRASHANTH KUMAR D, ADVOCATE FOR
M/S.POOVAYYA & CO., ADVOCATES)

AND

1. STATE BANK OF INDIA

A BANKING CORPORATION CONSTITUTED
UNDER THE STATE BANK OF INDIA ACT,
1955 (23 OF 1955), HAVING ITS
CORPORATE CENTRE AT
STATE BANK BHAVAN, MADAME CAMA ROAD
NARIMAN POINT, MUMBAI-400 021

AND HAVING ITS INDUSTRIAL FINANCE

BRANCH AT 61, RESIDENCY PLAZA
RESIDENCY ROAD, BENGALURU-560 025

2. AXIS BANK LIMITED

A COMPANY INCORPORATED UNDER
THE COMPANIES ACT, 1956 AND A
BANKING COMPANY WITHIN THE MEANING
OF SECTION 5(C) OF THE BANKING
REGULATION ACT, 1949 AND HAVING ITS
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REGISTERED OFFICE AT TRISHUL, THIRD FLOOR

OPP. SAMARTHESWAR TEMPLE, LAW GARDEN
ELLISBRIDGE, AHMEDABAD-380 006
GURAJAT, INDIA

AND HAVING ITS CORPORATE OFFICE AT

AXIS HOUSE, C-2, WADIA INTERNATIONAL
CENTRE, PANDURANG BUDHKAR MARG
WORLI, MUMBAI-400 025

3. BANK OF BARODA
A BODY CORPORATE UNDER THE BANKING
COMPANIES (ACQUISTION AND TRANSFER OF
UNDERTAKING) ACT, 1970 (5 OF 1970)
HAVING ITS HEAD OFFICE AT BARODA HOUSE
P.B.NO. 506, MANDAVI, VADODARA-396 006

ACTING THROUGH ITS BRANCH OFFICE AT

P.O. BOX 11745, SAMATA BUILDING
GENERAL BHOSALE MARG, NARIMAN POINT
MUMBAI-400 021

4. BANK OF INDIA
A BODY CORPORATE CONSTITUTED UNDER
THE BANKING COMPANIES (ACQUISITION &
TRANSFER OF UNDERTAKINGS) ACT, 1970
AND HAVING ITS HEAD OFFICE AT STAR HOUSE
C-5, G BLOCK, BANDRA KURLA COMPLEX
BANDRA (E), MUMBAI-400 051

AND HAVING ITS LARGE CORPORATE BRANCH

AT GROUND FLOOR, ORIENTAL BUILDING
364, D.N.ROAD, FORT, MUMBAI-400 001

5. CENTRAL BANK OF INDIA

A BODY CORPORATE CONSTITUTED UNDER THE
BANKING COMPANIES (ACQUISITION &
TRANSFER OF UNDERTAKINGS) ACT, 1980
AND HAVING ITS CORPORATE OFFICE AT
CHANDRAMUKHI, NARIMAN POINT
MUMBAI-560 021

AND HAVING ITS CORPORATE FINANCE BRANCH

(EARLIER KNOWN AS INDUSTRIAL FINANCE
BRANCH) AT CHANDRAMUKHI, GROUND FLOOR
NARIMAN POINT, MUMBAI-560 021
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6. CORPORATION BANK
A BODY CORPORATE CONSTITUTED UNDER THE
BANKING COMPANIES (ACQUISITION &
TRANSFER OF UNDERTAKINGS) ACT, 1980
(40 OF 1980) AND HAVING ITS CORPORATE
OFFICE AT MANGALADEVI TEMPLE ROAD
PANDESHWAR, MANGALORE-575 001

AND HAVING ITS INDUSTRIAL FINANCE BRANCH

AT RALLARAM MEMORIAL BUILDING, 1ST FLOOR
CSI COMPOUND, MISSION ROAD
BENGALURU-560 027

7. THE FEDERATION BANK LIMITED

A COMPANY WITHIN THE MEANING OF THE
COMPANIES ACT, 1956, HAVING ITS
REGISTERED OFFICE AT FEDERAL TOWERS
ALUVA 683101, KERALA

AND HAVING ITS BRANCH OFFICE AT

ST. MARKS ROAD, 9, HALCYON COMPLEX
ST.MARKS ROAD, BENGALURU-560 001

8. IDBI BANK LIMITED

A COMPANY INCORPORATED UNDER THE
COMPANIES ACT, 1956 AND A BANKING
COMPANY WITHIN THE MEANING OF THE
BANKING REGULATION ACT, 1949
HAVING ITS HEAD OFFICE AT IDBI TOWER
WTC COMPLEX, CUFFE PARADE
MUMBAI-400 005, MAHARASHTRA, INDIA

AND ACTING THROUGH ITS BRANCH OFFICE

AT CORPORATE BANKING GROUP-FAMG
9TH FLOOR, IDBI TOWER, WTC COMPLEX
CUFFE PARADE, COLABA, MUMBAI-400 005

9. INDIAN OVERSEAS BANK

A BODY CORPORATE UNDER THE BANKING
COMPANIES (ACQUISITION AND TRANSFER
OF UNDERTAKING) ACT, 1970, HAVING ITS
CENTRAL OFFICE AT 763, ANNA SALAI
CHENNAI-600 002

AND ITS BRANCH OFFICE AT HARIKRIPA

26-A, S.V.POAD, SANTACRUZ (W)
MUMBAI-400 054
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10. JAMMU & KASHMIR BANK LIMITED

A BANKING COMPANY INCORPORATED UNDER
THE PROVISIONS OF THE JAMMU & KASHMIR
COMPANIES ACT NO. XI OF 1977 (SAMVAT)
HAVING ITS REGISTERED OFFICE AT
CORPORATE HEADQUARTER
MAULANA AZAD ROAD, SRINAGAR
KASHMIR-190 001

AND ITS BRANCH OFFICE AT SYED HOUSE

124, S.V.SAVARKAR MARG, MAHIM (WEST)
MUMBAI-400 016

11. PUNJAB & SIND BANK

A BODY CORPORATE UNDER BANKING COMPANIES
(ACQUISITION AND TRANSFER OF UNDERTAKING)
ACT, 1980, HAVING ITS HEAD OFFICE AT 21
RAJENDRA PLACE, NEW DELHI-110 008

AND HAVING AMONGST OTHERS, A BRANCH OFFICE

AT J.K.SOMANI BUILDING, BRITISH HOTEL LANE
FORT, MUMBAI-400 023

12. PUNJAB NATIONAL BANK

A BODY CORPORATE UNDER THE BANKING
COMPANIES (ACQUISTION AND TRANSFER OF
UNDERTAKING) ACT, 1970 (5 OF 1970)
HAVING ITS HEAD OFFICE AT 7
BHIKAJI CAMA PLACE, NEW DELHI-110 607

ACTING THROUGH ITS LARGE CORPORATE

BRANCH AT CENTENARY BUILDING, 28
M.G.ROAD, BENGALURU-560 001

13. STATE BANK OF MYSORE

A BODY CORPORATE CONSTITUTED UNDER
THE STATE BANK OF INDIA
(SUBSIDIARY BANKS) ACT, 1959
HAVING ITS HEAD OFFICE AT
KEMPE GOWDA ROAD, BENGALURU-560 009

AND ITS CORPORATE ACCOUNTS BRANCH

AT NO.18, RAMANASHREE ARCADE, M.G.ROAD
BENGALURU-560 001
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14. UCO BANK

A BODY CORPORATE CONSTITUTED UNDER THE
BANKING COMPANIES (ACQUISTION & TRANSFER
OF UNDERTAKINGS) ACT, 1970 AND HAVING ITS
HEAD OFFICE AT 10, BTM SARANI
KOLKATA-700 001, WEST BENGAL, INDIA

AND ITS BRANCH OFFICE AT 1ST FLOOR

13/22, K.G.ROAD, BENGALURU-560 009

15. UNITED BANK OF INDIA

A BODY CORPORATE UNDER THE BANKING
COMPANIES (ACQUISTION & TRANSFER OF
UNDERTAKINGS) ACT, 1970 (5 OF 1970) AND
HAVING ITS HEAD OFFICE AT 11
HEMANTA BASU SARANI, KOLKATA-700 001

ACTING THROUGH ITS BRANCH OFFICE AT

40, K.G.ROAD, BENGALURU-560 009

R-1 TO 15 ARE REPRESENTED BY

MR.S. RANGA VITTAL, ASSISTANT GENERAL
MANAGER & RELATIONSHIP MANAGER
AMT IV (SMG-V), STATE BANK OF INDIA
INDUSTRIAL FINANCE BRANCH, BENGALURU.

16. KINGFISHER AIRLINES LIMITED

UB TOWER, LEVEL 12, UB CITY, 24
VITTAL MALLYA ROAD, BENGALURU-560 001
REPRESENTED BY ITS DIRECTOR

17. UNITED BREWERIES (HOLDINGS) LIMITED

UB TOWER, LEVEL 12, UB CITY, 24
VITTAL MALLYA ROAD, BENGALURU-560 001
REPRESENTED BY ITS DIRECTOR

18. DR. VIJAY MALLYA

S/O LATE SRI VITTAL MALLYA, MAJOR
R/AT 3, VITTAL MALLYA ROAD
BANGALORE-560 001

19. SBICAP TRUSTEE COMPANY LIMITED

NO.8, 5TH FLOOR, KHETAN BHAVAN
198, JAMSHEDJI TATA ROAD
CHURCHGATE, MUMBAI-400 020
REP BY ITS CHIEF OPERATIONS OFFICER
MR. V G PATHAK
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... RESPONDENTS

(BY SRI S S NAGANAND, SENIOR ADVOCATE FOR

SRI P K SHRIKARA, ADVOCATE FOR M/S.DUA ASSOCIATES,
ADVOCATES FOR R-1 TO 15;
NOTICE TO R-16 TO 19 DISPENSED WITH V/O
DATED 11.01.2016)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226

AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET
ASIDE THE ORDER DATED 17.11.2015 PASSED BY THE DEBTS
RECOVERY APPELLATE TRIBUNAL, CHENNAI IN I.A.NO.
340/2015 FILED IN M.A.NO.145/2015 [ARISING FROM I.A.NO.
4969/2013 IN OA 766/2013 PENDING ON THE FILE OF THE
DEBTS RECOVERY TRIBUNAL, BANGALORE] VIDE
ANNEXURE-A INSOFAR AS IT DECLINES TO EXTEND THE STAY
ORDER GRANTED VIDE ORDER DATED 14.10.2015 IN I.A.NO.
340/2015 AND ETC.,

THIS WRIT PETITION COMING ON FOR PRELIMINARY

HEARING THIS DAY, RAVI MALIMATH .J MADE THE
FOLLOWING:

ORDER

Aggrieved by the order dated 17.11.2015 passed by the

Debts Recovery Appellate Tribunal at Chennai, in declining to

pass any orders regarding an interim stay, the present petition

is filed.

2. Sri Sajan Poovayya, learned senior counsel

appearing for the petitioner’s counsel, contends that the

appellate tribunal committed an error in declining to grant any

interim stay. He contends that, at the first instance, by the

proceeding dated 14.10.2015, the Debt Recovery Tribunal was

directed not to proceed with O.A.No.766/2013, so far as the

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petitioner therein was concerned. Subsequently, when the

matter was taken up for consideration, the appellate tribunal,

while condoning the delay, declined to grant stay. Hence, he

prays that the petition be allowed by interfering with the

impugned order passed by the appellate tribunal.

3. On the other hand, Sri S.S.Naganand, learned

senior counsel appearing for the counsel representing

respondent Nos.1 to 15 defends the impugned order. He

contends that the appellate tribunal has noted that the senior

counsel did not argue on the question of stay and therefore,

the question of granting any interim order would not arise for

consideration. Either way, the matter is listed for final hearing

and the petitioner can make out his case before the Debt

Recovery Tribunal for appropriate relief.

4. Heard learned counsels.

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5. The operative portion of the order passed by the

appellate tribunal reads as follows:

“9. One word about interim order. I am

not inclined to pass any interim Order at
this stage as this is a heavily fought case.
Neither of the Senior Counsel argued on
the question of stay. Consequently, I
decline to pass any Orders regarding any
interim stay. This Application IA 340/2015
is allowed without costs.”

6. The appellate tribunal was of the view that it is not

inclined to pass any interim order at that stage since it is a

heavily fought case. In our view, that cannot be a ground to

decline any interim order. The case would necessarily have to

be considered on the merits of the case and not on the ground

that it is a heavily fought case.

7. The further reason assigned by the appellate

tribunal is that since the senior counsel did not argue on the

question of stay, it was not inclined to pass any orders

regarding interim stay. The petitioner’s counsel submits that

on the earlier occasion, arguments were advanced and

thereafter the matter was reserved for orders. Subsequently,

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by the proceedings dated 14-10-2015, an interim stay was

granted not to proceed with O.A.No.766/2013, so far as the

petitioner is concerned. Therefore, to hold that there no

arguments were advanced on the question of stay, is wholly

misconceived.

8. On hearing learned counsels, we are of the view,

that the reasons assigned by the tribunal may not be proper.

The records would indicate that after hearing the petitioner’s

counsel and the matter being reserved for orders, an interim

stay was granted. Therefore, on the next occasion to hold

that no arguments were advanced, may be misconceived.

9. Under these circumstances, we are of the

considered view, that it would be just and appropriate that the

petitioner be granted an opportunity to argue his application

for stay. By doing so, the petitioner would have an

opportunity to argue his case so far as an interim order is

concerned. The appellate tribunal would necessarily consider

the same on merits.

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10. Under these circumstances, the petitioner is

granted an opportunity to file a fresh application seeking an

interim order before the appellate tribunal. The appellate

tribunal is directed to consider the same and pass appropriate

orders on merit, within a period of one month from the date of

filing of such an application.

11. The writ petition stands disposed of with the

aforesaid observations.

Sd/-
ACTING CHIEF JUSTICE

Sd/-
JUDGE

bkv / rsk