THE INDORE High Court has stayed the auction of 35,000 square feet of prime land in Malharganj owned by the Madhya Pradesh Road Transport Corporation (MPRTC). The money raised from the auction was to be used to pay Tata Finance, as the MPRTC had defaulted in making payments to the finance company.
The auction was to take place on July 12, on orders of the IIIrd Additional District Judge, Indore which was stayed by Justice S K Sethi of Indore High Court, who in his July 6 order said, “Till the next date of hearing (six weeks), further proceedings pending in the Court of IIIrd Additional District Judge, Indore in Execution Case No 432005 (Tata Motors Vs MP Road Transport Corporation) shall remain stayed.”
Tata Motors had financed 23 buses on lease to the MPRTC, and the Corporation was supposed to make regular payments to Tata Finance in lieu of these buses, but they defaulted.
When the MPRTC defaulted on payments, the Tata Finance went in for arbitration in Mumbai. No one from the MPRTC went to take part in the arbitration process as a result of which the Arbitration Board in Mumbai gave its verdict in favour of Tata Finance.
Meanwhile, the MPRTC lodged a case in the Bhopal district court and subsequently in the Jabalpur High Court, but lost in both the courts.
Subsequently, Tata Finance approached the IIIrd Additional District Judge, along with the arbitration order and auction of the plot at Malharganj was fixed on July 12.
Even as this case was going on the MPRTC was wound up and the State Government took over MPRTC. To fight the case, the State Government appointed G M Pathak, who is at present RTO, Indore as OIC in this matter.
Pathak, talking to Hindustan Times, said that they have also moved Mumbai High Court against the order of the Arbitration Board in Mumbai.
He said the State Government felt that they should also be given a chance to be heard by the court as during the arbitration proceedings, no one from the MPRTC had appeared.
Additional advocate general A S Kutumbale and government advocate U Gajankush represented the government in the hearing yesterday.