Pavamana Drilling Pvt Ltd v. Punjab National Bank & Anr.

1. Upon instructions from Ms. Kusum Lata, Manager (Legal), PNB the learned counsel for the respondent Bank submits that the Bank has received the monies apropos the Oil Rig and it has no objection to the release of this oil rig in favour of the petitioner. The Bank is supported by a letter dated 15.03.2016 issued by the borrower/ R-2, who has hypothecated the said Oil Rig to the Bank against the loan. The said letter reads as under:- “Date: 15.03.2016 To, The Manager, Punjab National Bank, Large Corporate Branch, Tolstoy House, Tolstoy Marg, New Delhi- Sir, Sub: No objection certificate to transfer the title and possession rights of 1500 HP Rig in favour of Pavamana Drilling Pvt. Ltd. We bring to your kind notice that Pavamana Drilling Pvt Ltd will provide all the required funds to Tuff Drilling Private Limited to settle the Bank loan under the OTS scheme under an agreement that title and possession of the 1500 HP Rig shall be transferred in favour of Pavamana Drilling Private Limited immediately at the time of loan dues payment. We hereby declare that once the funds for OTS of both the banks i.e. Punjab National Bank and United Bank of India, have been provided by Pavamana Drilling (P) Ltd. and the accounts are settled, we have no objection on the transfer of the title and possession rights in favour of Pavamana Drilling Private Limited. Please treat this letter as our No Objection Certificate. Further, we hereby allow the bank to submit/provide all the required documents to Pavamana Drilling Private Limited needed for the transfer of title and possession of the 1500 HP Rig in favour of Pavamana Drilling Private Limited. Thanking You For Tuff Drilling Private Limited Sd/- Vivek Yadav Director”

2. The petitioner has already averred before the DRAT that it wishes to receive possession of the Oil Rig and has also requested the Bank to release possession of the same. The learned counsel for R- 2/borrower submits that there is some lis between R-2 and the petitioner.

3. Be that as it may, the fact remains that the petitioner paid the Bank Rs.46.25 crores in 2016 under a sale agreement with R-2 for acquisition of the Oil Rig. The agreement was shared with the Bank. The Bank was fully aware of the entire transaction and was also informed about it by issuance of the aforesaid letter/NOC by R-2. In the circumstances, the petitioner should not be deprived of the property.

4. The Banker is ready and willing to release the Oil Rig to the petitioner without any liability upon itself. The learned counsel for R-2 submits that if the property is released to the petitioner, then the appeal pending before the DRAT may well become infructuous. On a query put to the learned counsel for R-2 as to whether R-2 is in a position to return the monies along with commercial borrowing interest on Rs.46.25 crores, from the date the monies were paid to it or to the Bank by the petitioner, the answer is in the negative. That being the position, the petitioner cannot be deprived of either the property i.e. the Oil Rig or the refund of the monies paid by it for the acquisition of the same. The petitioner does not wish to be in any litigation. It is only fair and just that the Oil Rig be handed over to it. In the circumstances, the Bank is directed to hand over the Oil Rig to the petitioner.

5. The petitioner submits that handing-over the possession is a tedious process and would require a third person to take its possession from the Bank and then hand it over to the petitioner. The petitioner requests for the appointment of a Local Commissioner for this purpose. In the circumstances, Mr. Khowaja Siddiqui, Advocate (Mob No. 9811217751) is appointed as the Local Commissioner to take possession of the Oil Rig. The Bank shall hand over photocopies of all documents along with the inventory list which are in its possession apropos the Oil Rig to the Local Commissioner within four working days of receipt of copy of this order. Its officers shall be present at the site to assist the Local Commissioner for verification of the inventory and the status of the Oil Rig. R-2 too shall hand over all documents it has apropos the Oil Rig to the Local Commissioner. Both R-2 and the Bank shall depute their representatives at the time of taking over physical possession of the Oil Rig by the Local Commissioner, which according to the learned counsel for the petitioner could be done in the second/ third week of May, 2023. Let it be done on such dates as may be fixed by the Local Commissioner. The proceedings shall be videographed. The petitioner says that the process may take more than a week and multiple visits to the site in Gujarat for the Local Commissioner to discharge his duties. In the circumstances, for the moment, the fees of the Local Commissioner is fixed at Rs.20 lacs, in addition to out of pocket expenses and logistical support. The Local Commissioner may take the assistance of a technical expert at the expense of the petitioner. Half of the Local Commissioner’s fees be paid as the initial installment. The fees would be paid in such parts as may be billed by the Local Commissioner.

6. It will be open to R-2 to pursue its remedies as may be, available in law.

7. The petition is disposed-off in the above terms.

NAJMI WAZIRI, J SUDHIR KUMAR JAIN, J APRIL 28, 2023 sk/am