After the financial institutions, banks including SBI and Canara Bank have staked a claim on sale proceeds of Daewoo Motor India’s assets. The banks in separate cases filed with the Debts Recovery Tribunal, Delhi, have said that the sale proceeds of the current assets valued at Rs 182 crore should be recovered from the company as they have financed its working capital. SBI has filed a case for recovery of Rs 100 crore, while the Canara Bank has stated a figure of nearly Rs 50 crore. “SBI and Canara Bank have also sought a second charge on Daewoo’s fixed assets, besides a first charge on its current assets”, advocate S. L. Gupta, said. The banks have asked the receiver appointed by the DRT, Mumbai to deposit the sale proceeds of the current assets with the DRT, Delhi. In a separate development, Exim Bank in a recent affidavit has said that its case against the Korean major should be disposed of in its favour without any adjudication on account of the company’s admission of its liabilities. Exim Bank has sought a recovery of around Rs 146 crore under rupee and foreign currency term loan given to Daewoo.The Bank has said that Daewoo has admitted, acknowledged and confirmed the amounts due and payable as secured loans to the financial institutions in a communication to one of its directors H. S. Advani on November 14, 2002, wherein it has provided ‘details of the amounts due to the FIs as on March 31, 2002 as per books of accounts’.‘In view of the aforesaid clear and unambiguous admission made by the defendant (Daewoo), no issues of fact or law require to be adjudicated’, the affidavit says, adding that the tribunal should take judicial notice of the admissions and forthwith pass an order/recovery certificate to the extent of the admissions pending and final disposal of the original application for balance recovery of the applicant’s bank’s claim.Daewoo has been asked to file a reply in two weeks, by December 17. The other banks which have financed working capital of the company are State Bank of Patiala and IOB. On the Canara Bank case, the next hearing is fixed for December 10. Meanwhile, Debt Recovery Tribunal in Mumbai has invited bids from prospective buyers for the company. The DRT has fixed December 18 as the last date for receipt of offers for sale.
