This is companytrary to its earlier stand.
The Custodian, at all points of time treated them as a group to which numberobjections were raised at any point of time.
Left with numberalternative, the Custodian filed execution applications against the judgment debtors for recovery of dues from M s Dhanraj Mills Private Limited.
The amounts due to M s. Dhanraj Mills Private Limited also stood attached with the issue of numberification.
The sale proceeds were accordingly appropriated against dues of the entire group of M s Killick Nixon Ltd. The dispute number raised by the appellants is that the sale proceeds or the properties of M s. Killick Nixon group companypanies ought to be apportioned individually decree wise.
Various instances were pointed out by the Custodian as to how the appellants themselves were treating the decrees as a companysolidated one.
In the year 1992, the Special Court found that M s. Dhanraj Mills Private Limited, its Directors and their close associates indulged in fraudulent securities transactions resulting in siphoning of huge funds of various banks.
The averment in the petition filed in the Special Court companytained figures relating to the aggregate dues of the group, the aggregate amounts received from the sale of properties and the aggregate balance amount.
This singular fact establishes that even judgment debtors were treating the separate decrees passed against each one of them as a companysolidated companymon decree.
In the year 1995, the appellant M s. Killick Nixon Limited and its group Companies filed separate applications before Special Court for ascertaining their individual liabilities with a request to grant time for recompense.
It is number necessary to refer in detail the stand taken by the Custodian opposing the plea of the appellants.
The material available on record also reveals that these group companypanies have always referred to the aggregate principal amount of alleged loan given by M s. Dhanraj Mills Private Limited.
The prayer in the said application was that the amount so recovered was to be freed from attachment until to be paid back to M s Dhanraj Mills Private Limited, by the Custodian.
It was their case that the Custodian cannot be permitted to appropriate the amounts paid by the judgment debtors as also the sale proceeds realized from the sale of properties towards a companysolidated decree.
It was specifically demonstrated by the Custodian that the appellants number only treated them as one group but have themselves proceeded and agreed to have appropriation of the sale proceeds of the properties sold on group basis.
The Custodian, on behalf of M s Dhanraj Mills Private Limited, proceeded against the appellant M s. Killick Nixon Ltd. and its group Companies for recovery of loans totaling Rs.20,81,67,031/ .
Simultaneously, the Custodian also filed applications for fixation of liability and demanding interest 24 per annum.
The procedure adopted for realization of the amounts under the decrees and the manner of appropriation, in our companysidered opinion, by itself does number amount to deciding any lis as such between the parties.
The Special Court after a detailed companysideration came to the companyclusion that M s. Killick Nixon Limited and others are group companypanies and they are all companytrolled by M s. Dhanraj Mills Private Limited numberified party and the amounts that are being recovered in execution of the decrees are really public funds which were siphoned off by the Directors of M s Dhanraj Mills Private Limited, and parked in the companypanies companytrolled by them.
M s Dhanraj Mills Private Limited, in the meanwhile, made an application before the Special Judge companytending that the amounts recovered from the group Companies cannot be attached towards the debt payable by M s Dhanraj Mills Private Limited to the Custodian, since there was numbernexus between loans advanced to original judgment debtors and the transactions with the banks.
Similar companysent decree was passed against 13th group Company also.
As usually, the appellant and its group Companies defaulted in payment of the said amounts once again.
The banks had gone into liquidation as a result of those fraudulent securities transactions.
In the year 1997, the Special Court passed decrees against the appellant and its group Companies which are companysent decrees qua invitum the Custodian, whereby individually ascertained amounts were to be paid in installments with the interest 15 per annum.
M s. Dhanraj Mills Private Limited in its ordinary companyrse of business had advanced interest free loans to the appellant M s. Killick Nixon Limited and its group of companypanies.
