Capricorn Food Products India Pvt.Ltd v. Rbl Bank Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 25.02.2021

CORAM:

THE HON'BLE JUSTICE C.V.KARTHIKEYAN C.S.No.231 of 2020 and A.No. 2065 of 2020 and O.A.No. 416 of 2020 Capricorn Food Products India Pvt Ltd., represented by its Managing Director, Mr.Rahoul Jain Old No. AH-216, New No. AH-11 2nd Street, Shanthi Colony Anna Nagar Chennai - 600 040.

... Plaintiff ..Vs..

1. RBL Bank Ltd., having Branch Office at Bannariamman Towers 7th Floor No.29, Radhakrishnan Salai Mylapore Chennai - 600 004.

2. State Bank of India having Branch Office at Industrial Finance Branch KRM Plaza, No. 2, Harington Road, Chetpet, Chennai - 600 031.

3. IDBI Bank Ltd., 1/6

having Branch Office at Specialised Corporate Branch No.115, Anna Salai, PV No.805, Saidapet, Chennai - 600 015.

4. Indian Bank having Branch Office at Saidapet Branch Bali Towers No.1, Abdul Razak Street Chennai - 600 015.

5. Doha Bank QPSC Having Branch Office at No.9, Anna Salai, Chennai - 600 002.

6. DBS Bank India Ltd.

Having Branch Office at No. 806, Anna Salai, Chennai - 600 002.

7. IDFC First Bank Ltd., having Branch Office DBS West Minister 3rd Floor, 108 RK Salai Mylapore, Chennai - 600 004.

8. HDFC Bank Ltd., having Branch Office at 4th Floor, Samson Towers, Sulaiman Zackaria Avenue Pantheon Road, Egmore, Chennai - 600 008 ... Defendants PRAYER : Plaint filed under and Order IV Rule 1 of Original Side Rules 2/6

read with Order VII Rule 1 of CPC prayed for a Judgment and Decree:- (a) Declaration that the Red Flagging of the Plaintiff's account bearing No. RBL CC Account No.609000250363 by the first defendant is illegal and all actions consequential thereto are illegal; (b) Permanent Injunction restraining the Defendants, its employees, agents, or men, from conducting a forensic audit of the plaintiff without the consent of the Consortium and more particularly contrary to the terms of the Minutes of Consortium Meeting dated 05.05.2020; and (c) direct the first defendant to pay the costs of the suit. *** For Plaintiff : M/s. R. Prem Raja Kumari for M/s. Srinath Sridevan For 1st Defendant: Mr. C. Suraj For 2nd Defendant: Mr. K. Chandrasekaran

J U D G M E N T

3/6

A Memo had been filed by the learned counsel M/s. R.PRem Raja Kumari, who appears for resolution professional, who has been appointed to administer the plaintiff company. The said Memo is extracted below: "It is respectfully submitted that the Hon'ble National Company Law Tribunal, Chenani in IBA No. 386 of 2020 - in the case of M/s. Rasaa Foods Private Limited Vs. M/s. Capricorn Food Products India Limited, an application for Corporate Insolvency Resolution Process (CIRP) filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 admitted the same and ordered for Corporate Insolvency Resolution Process on 13.11.2020, wherein Mrs.J.Karthiga, with IBBI Registration No. IBBI/IPA001/IP-P00752/2017-2018/11284 was appointed as the Interim Resolution Professional by the Hon'ble NCLT. Accordingly, the Interim Resolution Professional took in charge of the corporate affairs of the plaintiff Company and the company is undergoing Corporate Insolvency Resolution Process (CIRP).

2. It is respectfully submitted that the C.S.No. 231 of 2020 has been filed against the defendants for the 4/6

following reliefs:

(a) Grant a declaration that the Red Flagging of the plaintiff is account bearing No. RBL CC Account No. 609000250363 by the first defendant is illegal and all actions consequential thereto are illegal;

(b) consequently for a permanent injunction, restraining the defendants, its employees, agents, or men, from conducting aforensic audit of the plaintiff without the consent of the Consortium and more particularly contrary to the terms of the Minutes of Consortium Meeting dated 05.05.2020.

3. It is submitted that, as the CIRP is in process and the forensic audit having commenced, nothing survives for adjudication in the above suit. Hence the Resolution Professional is withdrawing the audit. In view of the above, it is humbly prayed that this Hon'ble Court may be pleased to record the above submissions, and the matter may be disposed of as withdrawn."

C.V.KARTHIKEYAN, J 5/6

vsg

2. In view of the same, suit is dismissed as withdrawn. No order as to costs.

25.02.2021 Index : Yes / No Web : Yes / No vsg C.S.No.231 of 2020 and A.No. 2065 of 2020 and O.A.No. 416 of 2020 6/6