Delhi High Court
National Investor Forum Regd. vs Golden Forests India Ltd. on 6 August, 2014
Author: S.Ravindra Bhat
Bench: S. Ravindra Bhat, Vipin Sanghi
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 06.08.2014
+ W.P.(C) 1399/2010
NATIONAL INVESTOR FORUM REGD. ..... Petitioner
versus
GOLDEN FORESTS INDIA LTD. ..... Respondent
Through: Mr. Anip Sachthey & Ms. Shagun Matta, Advocates for GFI Society.
Mr. Prashant Mehta, Mr. Ishan Arora & Mr. Himanshu Kapoor, Advocates for Nikhil Syar.
Mr. Rajiv Nayyar, Senior Advocate along with Ms. Manmeet Arora, Mr.Mohit Paul & Mr. Rishabh Bansal, Advocate for Mr. Radhey Sham Middha.
Sh. Sukumar Patjoshi, Sr. Advocate with Sh. Prashant Katara, Advocate, for the successful bidder.
CORAM:
HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE VIPIN SANGHI MR. JUSTICE S. RAVINDRA BHAT (OPEN COURT) % C.M. No.8058/2014
1. This application is for confirmation of sale of 244 Kanals and 13 Marlas in Village Dangdehri, Tehsil & District, Ambala, which W.P.(C) 1399/2010 Page 1 was advertised by the Committee for Golden Forest on 10.05.2014 in several national newspapers. The last date fixed for receipt of sealed bids was 10.06.2014; the bids were opened on 13.06.2014. The bid of M/s. Dera Sacha Sauda for `18.5 Crores was the highest, which resulted in inter se bidding. Subsequently M/s. Dera Sacha Sauda gave the highest bid of `18.5 Crores and was declared to be purchase of the land. More than 20% of the bid amount was deposited by the said successful bidder on 16.06.2014.
2. When the application was listed for hearing for the first time on 02.07.2014, Mr. Mohit Paul, Advocate representing the interest of the Golden Forests Investors Society stated that one Manvir Singh was willing to purchase the property for `21.5 Crores and subsequently requested for some time. Even though the said Manvir Singh had no locus standi, the Court felt that since larger interests of investors were involved, the matter ought to be adjourned. In these circumstances the following order was made on 02.07.2014:
"CM No.8058/2014The Committee has sought for confirmation of a sale in respect of 244 kanals and 13 marlas in Village Dangdehri, Tehsil and District Ambala. The advertisements for sale were issued on 10.05.2014 and publicised widely in national newspapers inviting bids which resulted in the highest offer for Rs.18.5 crores by M/s Dera Saucha Sauda (Trust). The bidder had already deposited more than 20% of the bid amount i.e. 4 crores within the time prescribed in that regard.
W.P.(C) 1399/2010 Page 2 Mr Mohit Paul, Advocate claiming to represent Golden Forest Investor Society submits that one Mr Manvir Singh could not participate in the bid but is willing to purchase the property for Rs.21.5 crores.
In order to consider the request on behalf of Mr Manvir Singh, this Court is of the opinion that since Manvir Singh who, concededly, did not participate in the bid despite the advertisements, it would be appropriate and in the interest of justice to see whether the said bidder is a serious one. Therefore, it is directed that 50 % of the amount offered i.e. Rs.10.75 crores be deposited within a week from today with the Registrar. The said amount shall be deposited in an interest bearing account by the Registry to be disbursed pursuant to the final orders of the Court. This Court is of the opinion that if the new bidders appears to be genuine and serious, the matter may have to be relegated to the Committee to facilitate the inter se bidding which would include the new bidder.
An affidavit shall be filed by Mr Manvir Singh disclosing all relevant particulars i.e. his residence, occupation, etc. List on 11.07.2014."
3. On 11.07.2014, the Court noticed that Mr. Manvir Singh neither filed the affidavit nor deposited `10.75 Crores, as was required of him. The following order was made in the circumstances:
" Despite the previous order of the court dated 02.07.2014, Mr. Manvir Singh - on whose behalf of Mr. Paul, claiming to represent the Golden Forest Investor Society, had appeared on the previous date, has neither deposited Rs.10.75 crores in court nor filed the affidavit. Mr. Paul seeks further time and assures that the order would be complied with.
W.P.(C) 1399/2010 Page 3 This Court notices that even though Mr. Paul claims to represent the Golden Forest Investor Society, there is no affidavit on its behalf with respect to Mr. Manvir Singh or any document on his behalf expressing willingness to participate in the bid in case that were to be allowed.
A copy of the deposit confirmation renewal advice of HDFC Bank confirming that fixed deposits to the tune of about Rs.12 crores (standing in the name of Mr. Harmohinder Singh) have been shown to the Court. However, there is no connection established between Mr. Harmohinder Singh and Mr. Manvir Singh.
In these circumstances, a final opportunity is granted to Mr. Paul to disclose the interest of his society by filing an affidavit of its secretary or some office bearer in this regard. He shall also ensure to comply with the previous order of 02.07.2014 by filing the affidavit of Mr. Manvir Singh and ensure that the deposit directed is also made with the Registrar of the Court.
In order to ensure that the present proceeding does not end a red-herring, the Golden Forest Investor Society is directed to deposit to Rs.5 lakhs towards costs, in case the present proceedings are delayed and ultimately Mr. Manvir Singh loses interest in the property. The cost shall be deposited before the next date of hearing.
List on 16.07.2014."
4. In compliance of the order dated 11.07.2014, pay orders for an aggregate of `5 lakhs were tendered in Court by Mr. Sachtey. In this background, on 23.07.2014, a demand draft favouring Chairman Committee of "GFI" was tendered for `21.5 Crores; it was issued by M/s Axis Bank Limited, Rohini Delhi (DL), Plot No.5, Vikas Surya Plaza, Community Centre, DC Chowk, Sector-9, Rohini, New Delhi -
W.P.(C) 1399/2010 Page 4 110085. The Court was of the opinion that since this was on behalf of yet another party, i.e. Mr. Radhey Sham Middha representing one "Harry Township Ltd.", it was necessary to file a supporting affidavit. It was in these circumstances that this Court recorded the following order:
"C.M. No.8472/2014 (Exemption) Allowed, subject to all just exceptions.C.M. Nos.8058 and 8471/2014
Mr. Anip Sachthey, learned counsel on behalf of Mr. Radhey Shyam, S/o Shri Diwan Chand, R/o 3046, Sector- 28D, Chandigarh and House No.9, Sector-19, Chandigarh, has tendered the demand draft no.882662, dated 22.07.2014, issued by the Axis Bank Limited, Plot No.5, Vikas Surya Plaza, Community Centre, D.C. Chowk, Sector-9, Rohini, New Delhi-110085, favouring the Chairman, Committee of Golden Forest India Limited for the sum of Rs.21.50 Crores. It is submitted that the matter is sent back to the Committee for fresh process of bidding. The said Mr. Radhey Shyam represents one Harry Township Limited, which is interested in bidding on behalf of the said company in the said sum of Rs.21.50 Crores. Mr. Sachthey, Advocate seeks a day's time to file an affidavit disclosing the particulars of the bidder such as the name of the company, company's PAN number, Resolution authorizing the purchase of the land as well as the particulars with respect to its Board of Directors, whether they are an income tax payee, etc. The affidavit shall be tendered tomorrow, i.e., 24.07.2014.
The said demand draft is hereby taken on record and shall be kept in the physical custody of the Registrar General, to be produced tomorrow.
W.P.(C) 1399/2010 Page 5 Mr. Himanshu Kapoor, Advocate appears on behalf of Mr. Nikhil Kant Syal, S/o Shri Rakesh Kant Syal. The particulars and relevant details of Mr. Nikhil Kant Syal shall be filed in the Court in the form of an affidavit within a week from today.
List on 24th July, 2014.
A copy of this order be given under the signatures of Courtmaster."
5. Mr. Radhey Sham Middha filed an affidavit, enclosing copies of the PAN Card of M/s Real Pro Assets Ltd. as well as his Electoral Photo Identity Card issued by the Election Commission of India. No further details such as Board Resolution of M/s Real Pro Assets Ltd., or Harry Township Limited was produced nor were any other particulars such as the identity of the Board of Directors, whether M/s Real Pro Assets Ltd. had filed Income Tax Returns, etc. - as required by the order dated 23.07.2014, furnished.
6. On 24.07.2014, Mr. Pattjoshi, learned senior counsel appearing for successful bidder, i.e. M/s Dera Sacha Sauda alleged that the pay order issued by Axis Bank Ltd. and furnished to the Court was, in fact, forged. This Court, therefore, directed an inquiry to be conducted and issued appropriate directions in that regard to the Registrar General. The order dated 24.07.2014 reads as follows:
"C.M. Nos.8058/2014 and 8471/2014 Further to the previous order of the Court dated 23.07.2014, Mr. Paul has placed on record the affidavit of Mr. Radhe Sham Midha, Managing Director of M/s Real Pro Assets. This time the affidavit records that Mr. Radhe W.P.(C) 1399/2010 Page 6 Sham Midha is the Managing Director of M/s Real Pro Assets, a different entity from the one mentioned by him yesterday. There is no further detail or particulars, contrary to what was required by the previous order.
Mr. Pattjoshi, learned senior counsel appearing on behalf of the successful bidder, on instructions, seeks liberty to place on record the affidavit of one Mr. Dhanwant Singh, son of Mr. Naranjan Singh, the authorised representative of Dera Sacha Sauda.
The affidavit levels serious allegations against the bid of Mr. Radhe Sham Midha to the extent of alleging that the pay order issued by Axis Bank Ltd. on 22.07.2014, particulars of which are recorded in yesterdays order is, in fact, a forgery. Mr. Pattjoshi has placed on record the pay orders issued by Axis Bank Ltd. of the same branch seeking to establish that the format is entirely different.
Having regard to the submissions and in order to ensure clarity, the Registrar General is hereby directed to immediately take steps to depute a responsible officer not below the rank of Joint Registrar, who shall make enquiries as to the genuineness of the pay order tendered by Mr. Radhe Sham Midha.
The report of the Registrar General - including the statements recorded by the concerned Manager and authorised signatories of the Axis Bank Ltd., Rohini Branch (the address of which is mentioned in the pay order dated 22.07.2014) shall be enclosed along with the report.
The Axis Bank Ltd., Rohini Branch is directed to render all cooperation in this regard.
Order dasti under the signatures of the Court Master
- to be separately marked to the Registrar General.
W.P.(C) 1399/2010 Page 7 The Registrar General shall ensure that the report is placed on record atleast one day prior to the next date of hearing.
Issue notice to Mr. Radhe Sham Midha. Mr. Paul accepts notice on his behalf.
Mr. Radhe Sham Midha is directed to remain present in court on the next date.
List on 06.08.2014.
C.M. Nos.15191/2013 and 7318/2014 List on 03.09.2014."
7. Pursuant to the order of the Court, Mr. G.R. Grover, Joint Registrar was deputed to conduct the inquiry and furnish a report. He issued notice to all the concerned parties, pursuant to which Mr. Nitin Gupta, Assistant Vice President and Branch Head of Axis Bank Ltd. appeared on 01.08.2014 before the Joint Registrar and stated that the pay order (for `21.5 Crores) in issue in this case was a fake document and was never issued by the concerned branch.
8. The Inquiry Officer also considered the statements of Mr. Saurabh, Deputy Manager of Axis Bank Limited as well as explanation of Mr. Radhey Sham Middha stating that he was allegedly defrauded. Mr. Middha's explanation finds place in paragraphs 9 to 14 of the inquiry report. The inquiry report also took into consideration statement of Mr. Mohit Paul, Advocate for Mr. Radhey Sham Middha.
9. In the light of these circumstances, this Court is of the opinion W.P.(C) 1399/2010 Page 8 that a criminal contempt on the face of the proceedings by Mr. Radhey Sham Middha was committed, to stall the confirmation of the sale proceedings in which M/s Dera Sacha Sauda had been declared successful bidder.
10. Mr. Radhey Sham Middha is present in Court. In terms of Section 14(1) of the Contempt of Courts Act, the following charge is framed:
" The affidavit placed on record dated 24.07.2014 and the statement made pursuant to it, that you Shri Radhey Sham Midha, S/o Shri Diwan Chand Midha are willing to purchase or cause to be purchased, the land being 244 Kanals and 13 Marlas in Village Dangdehri, Tehsil & District, Ambala for Rs.21.5 Crores and the deposit of Rs.21.5 Crores by pay order No.882662 dated 22.07.2014 issued by M/s Axis Bank Limited, Rohini Delhi (DL), Plot No.5, Vikas Surya Plaza, Community Centre, DC Chowk, Sector-9, Rohini, New Delhi - 110085, which has been subsequently discovered to be a false and forged document has resulted in stalling the proceedings of the Court and is an obstruction to administration of justice.
You the aforesaid Shri Radhey Sham Midha, are hereby charged with criminal contempt on the face of the Court punishable in terms of Section 14(1) of the Contempt of Courts Act."
11. A copy of the Articles of Charge were furnished to Mr. Radhey Sham Middha. He pleaded "guilty" and stated that he wishes to explain his conduct. The copy of the enquiry report too was furnished to Sh. Radhey Sham Middha who wished to furnish his explanation and also address the Court as to the appropriate course of action, i.e. W.P.(C) 1399/2010 Page 9 whether sentence ought to be imposed or not. The Registry is directed to register a criminal contempt proceedings which shall be listed on 27.08.2014. The file of thie said Criminal Contempt case shall include a copy of the present order, the Enquiry Report and the Article of Charge with plea of the contemnor, both in original. The Registrar General is directed to file a complaint under Section 340 Cr.PC for the offences punishable under the relevant provisions of Chapter-XI (Section 192 of the Cr.PC) and such other offences as may be punishable in law, to the appropriate Court.
12. The Enquiry Report is based upon the sworn statements of Mr. Saurabh Varshney, Mr. Radhey Sham Middha and Mr. Nitin Gupta. The statement of Mr. Mohit Paul, Advocate is also a part of the record. In the light of these facts, the Court is of the opinion that prima facie offences punishable under the Indian Penal Code (IPC), including those relating to forgery, forgery of negotiable instruments etc. are involved, by presenting Pay Order no. 882662 dated 22.07.2014, issued by the Axis Bank Limited, Plot No.5, Vikas Surya Plaza, Community Centre, D.C. Chowk, Sector-9, Rohini, New Delhi- 110085. The statements of the bank officials - Mr. Nitin Gupta and Mr. Saurabh Varshney prima facie disclose that the document, i.e. the pay order was forged. Accordingly, the Registrar General of this Court is hereby directed to register a First Information Report (FIR) with the concerned Police Station having jurisdiction over the offence, including Police Station Tilak Marg, New Delhi, and submit all the necessary documents - including the pay order.
W.P.(C) 1399/2010 Page 10
13. The report of compliance shall be filed by the Registrar General indicating the action taken in respect of the above directions within two weeks from today. Mr. Radhey Sham Middha shall be present before the Registrar on 08.08.2014, for furnishing surety in the sum of `10,000/- in favour of "the Registrar General, Delhi High Court, New Delhi".
14. Mr. Mohit Paul, Advocate shall file an affidavit outlining the circumstances in which he was engaged in this matter and appeared on the various dates of hearing culminating in the presentation of the pay order for `21.5 crores, which is the subject matter of the criminal contempt proceedings and in respect of which FIR has been directed to be lodged.
15. In view of the above developments, the sum of `5 lakhs deposited by Shamsher Singh Sandhu, by way of compliance with this Court's directions is hereby forfeited. The same shall be encashed and made over to the Committee for GFIL to be utilized for disbursement etc.
16. As regards C.M. NO 8058/2014, it seeks confirmation of the sale in favour of Dera Sacha Sauda, Sirsa (Trust) in respect of 244 Kanal, 34 Marla in Village Dangdehri, Tehsil and District Ambala, Haryana. The Commitee for GFIL had issued advertisements in a large number of national newspapers on 10.05.2014. The last date fixed was 10.06.2014. Upon the tenders being opened, the Committee for GFIL discovered that there were three bidders. One was Dera W.P.(C) 1399/2010 Page 11 Sacha Sauda, Sirsa (Trust); the second was a joint bid by one Mr. Sunil Bansal and Mr. Amit Dewan ; the third was for `18.11 crores. In these circumstances, inter se bidding was held in which the offer of Dera Sacha Sauda, Sirsa (Trust) for `18.5 crores was accepted, being the highest bidder. In terms of the bidding conditions, the said successful bidder deposited amounts in excess of 20% of the bid amount by the stipulated date, i.e. 16.06.2014. It is in these circumstances that the two applications are filed for confirmation of bid.
17. As is evident from the previous discussion, during the pendency of these applications, requests were made on behalf of the Investor's Society which led to adjournments on various dates of hearings when the offers of certain potential buyers were put forth. This proved to be abortive as it was later found that the offer of Sh. Radhey Sham Middha backed by the tender for `21.5 crores through the pay order was untenable, since the said Pay Order was forged. Separate proceedings initiating criminal contempt proceedings have been initiated today in that regard.
18. This Court has considered the averments. The notified rate for the land is `13 lakhs per acre of the agricultural land as is evident from Annexure A-4. The total extent of land is 30.6 acres. The value in terms of the notified circle rates work out to `3.98 crores. It is averred and documents in support indicate that in the very same village, i.e. Village Dangdehri, Tehsil and District Ambala, Haryana, land to the extent of 22 Kanals-19 Marla was sold for `2.25 crores and W.P.(C) 1399/2010 Page 12 99 Kanal -3 Marla was sold for `5.51 crores. These are subject matter of confirmation by orders of this Court dated 11.12.2013 in C.M. No.9657/2013. We notice that the reserve price indicated in the advertisement in the present case was `18 crores.
19. Having regard to the above circumstances, this Court is of the opinion that offer of the highest and successful bidder Dera Sacha Sauda has to be confirmed. A direction is accordingly issued. C.M. No. 8058/2014 is accordingly allowed; the Committee of GFIL shall proceed to take consequential action subject to the highest bidder depositing the compliance amount in terms of the bidding. In the event such terms are not complied with, all rights and contentions of the Committee for GFIL to forfeit the amount in accordance with the terms and conditions of the bid is reserved.
C.M. No.8471/2014 (for recalling the order dated 02.07.2014) Learned counsel states that the present application is rendered infructuous. C.M. No.8471/2014 is accordingly dismissed as infructuous.
C.M. No.9925/2014In view of the orders made today in C.M. No.8058/2014, C.M. No.9925/2014 is rendered infructuous. C.M. No.9925/2014 is accordingly dismissed as infructuous.
W.P.(C) 1399/2010 Page 13
Rev. Pet.352/2014
List on 17.09.2014.
S. RAVINDRA BHAT
(JUDGE)
VIPIN SANGHI
(JUDGE)
AUGUST 06, 2014/bsr/ajk
W.P.(C) 1399/2010 Page 14