A vacation bench, comprising Justices K K Sasidharan and N Kirubakaran, granted the injunction on October 25, while passing interim orders on a writ petition from Saketh India Limited, by its managing director R L Sharma, challenging IDBI's decision to take over one of its factories in Hosur.
The main prayer of the petitioner company was to direct the bank to cooperate with its attempts to sell its another factory in Nalaconda in Andhra Pradesh to enable it to comply with the conditions of the one-time settlement proposal of the amount due to the bank.
According to advocate K Ramakrishna Reddy, the company borrowed Rs 20 crore from IDBI in 2004 and could not repay the loan amount as it had become 'sick,' as declared by the Board for Industrial and Financial Reconstruction in 1997.
However, the company initiated rehabilitation proceedings and opted for one-time settlement (OTS) of Rs 18 crore with certain conditions. Even though IDBI accepted the OTS, it later initiated steps to take over the property in Hosur following which the petitioner has filed the present plea.
