Court directs issuance of Rs. 66.38 lakh cheque to IDBI Bank in settlement agreement

The court directed the issuance of a cheque for Rs. 66.38 lakhs to the "Industrial Development Bank of India Limited" from the sale proceeds, following an agreement on a One Time Settlement. The judgment addressed the background of financial assistance, mortgage of immovable property, unpaid luxury tax, and subsequent actions involving various financial institutions and a cooperative bank. Detailed orders were given for disbursement of sale proceeds, settlement of dues with a cooperative bank, withdrawal of the State's claim towards luxury tax, and approval of the One Time Settlement with IDBI Bank, including directions for compliance and procedural steps.

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Issues:
1. Direction for issuance of a cheque for a specific sum from the sale proceeds.
2. Background of financial assistance and mortgage of immovable property.
3. Unpaid luxury tax leading to a notification for sale of mortgaged property.
4. Court orders related to the sale proceeds and disbursement to financial institutions.
5. Settlement of dues with Charotar Nagrik Cooperative Bank.
6. One Time Settlement with IDBI Bank and directions for cheque issuance.

Analysis:
1. The judgment involves an application for a direction to issue a cheque for a sum of Rs. 66.38 lakhs to the "Industrial Development Bank of India Limited" from the sale proceeds pursuant to a previous judgment. The applicant and IDBI Bank had agreed on a One Time Settlement for this amount by a specified date.

2. The applicant company had availed financial assistance from various institutions secured by a mortgage of immovable property. Due to unpaid luxury tax, a notification for sale of the mortgaged property was issued. The court highlighted the lenders' pari pasu charge over the mortgage property.

3. The court discussed the background of the unpaid luxury tax leading to a notification for sale of the mortgaged property and the subsequent legal actions taken by the parties involved. Various financial institutions and a cooperative bank were part of the proceedings.

4. Detailed court orders were passed regarding the disbursement of the sale proceeds to different financial institutions and government authorities. Specific amounts were allocated to each entity, and conditions were set for the return of funds if found not recoverable. The judgment also addressed the workers' dues and the investment of the remaining balance.

5. The judgment mentioned the settlement of dues with Charotar Nagrik Cooperative Bank and a specific order related to the withdrawal of the State's claim towards luxury tax.

6. Finally, the judgment approved the One Time Settlement between the applicant and IDBI Bank, issuing directions for the issuance of a cheque, timelines for compliance, and further considerations on a specified date. The court allowed IDBI Bank to obtain a copy of the order for necessary procedures pending procedural clearance.

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