Delhi High Court - Orders
Re-M/S Jvg Finance Ltd vs Unknown on 30 January, 2024
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~C1 to C4
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CO.PET. 265/1998, CO.APPLs. 669/2013, 556/2019, 700/2019,
1007/2019, 1132/2019, 278/2020, 233/2023, 306/2023, 308/2023,
310/2023, 312/2023, 314/2023, 316/2023, 318/2023, 320/2023,
322/2023, 324/2023, 326/2023, 328/2023, 330/2023, 332/2023,
334/2023, 336/2023, 338/2023, 340/2023, 413/2023, 415/2023,
417/2023, 419/2023, 421/2023, 423/2023, 425/2023, 427/2023,
429/2023, 431/2023, 433/2023, 435/2023, 437/2023, 439/2023,
441/2023, 443/2023, 445/2023, 447/2023, 449/2023, 451/2023,
453/2023, 572/2023, 894/2023, 908/2023, 919/2023, 920/2023,
19/2024, 20/2024, 24/2024, 59/2024
RE-M/S JVG FINANCE LTD. ..... Petitioner
Through: Ms. Vertikka Kiran Kashyap, Ms.
Anjaneya Singh, Mr. Rakesh Kumar
Chandram, Advs. (M. 9708999899)
Mr. Prabhash, Adv. (M.
8950490320)
Dr. B.S. Nagar, Adv. (M.
9811181891)
Mr. Anil Kumar Chunduru, Adv.
and applicant in person (M.
9811335435)
Mr. Ramesh Babu, Ms. Manisha
Singh, Ms. Tanya Chowdhary, Ms.
Jagriti Bharti Advs for RBI
Mr. Pawanjit Singh Bindra, Senior
Advocate with Mr. Manoj C. Mishra,
Advocate, Mr. Lakhan Kumar
Mishra, Advocate
versus
.... ..... Respondent
Through: Mr. Kunal Sharma, & Mr. Subhendu
Bhattacharya, Advs. (M.
9910200911)
Mr. Ashu Kansal Mr. Akash
CO.PET. 265/1998 & connected matters Page 1 of 10
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:49
Srivastava, Advs. (M. 9555840002)
Ms. Kritika Gupta, Mr. Tanmay
Yadav, Advs. (M. 8826331177)
Mr. Raja Chatterjee Mr.
Harshvardhan Jha, Mr. Aman
Pathak, Mr. Piyush Sachdeva, Ms.
Riya Dutta, Ms. Anupama Gupta,
Advs. (M. 9971121185)
Mr. Vivek Sharma and Mr. Manoj
Tomar, Adv. for R-2.
C2 WITH
+ CO.PET. 385/1998, CO.APPLs. 1561/2011, 5/2012 & OLR
263/2016
M/S PRESS SYNDICATE LTD. ..... Petitioner
Through: Mr. Gopal Jha, Adv. (M.
9811741955)
versus
JVG DEPARTMENTAL STORES LTD. ..... Respondent
Through: Mr. Kunal Sharma, & Mr. Subhendu
Bhattacharya, Advs.
Mr. Raja Chatterjee Mr.
Harshvardhan Jha, Mr. Aman
Pathak, Mr. Piyush Sachdeva, Ms.
Riya Dutta, Ms. Anupama Gupta,
Advs. (M. 9971121185)
C3 WITH
+ CO.PET. 113/2014, CO.APPLs. 362/2014, 1591/2016, 4597/2016,
114/2017, 1564/2017, 1565/2017, 79/2018, 48/2020, 63/2020, OLR
192/2016, OLR 328/2016 & OLR 268/2019
JVG FINANCE LTD & ORS. ..... Petitioners
Through:
versus
GOLDEN GATE INDUSTRIES LTD. (FORMERLY
KNOWN AS JVG INDUSTRIES LTD.) ..... Respondent
Through: Mr. Kunal Sharma, & Mr. Subhendu
Bhattacharya, Advs.
Mr. Arun Srivastava, Adv (M.
9818166510)
CO.PET. 265/1998 & connected matters Page 2 of 10
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:49
C4 AND
+ CO.APPL.(M) 1/2023
V.K. SHARMA ..... Petitioner
Through: Mr. Raja Chatterjee, Mr. Piyush
Sachdev; Ms. Anupama Gupta, Ms.
Riya Dutta, Advs. (M. 8800919326)
versus
JVG FINANCE LIMITED
(IN LIQUIDATION) & ORS. ..... Respondents
Through: Mr. Anil Karnwal, Adv, (M.
9810044429)
Mr. Kunal Sharma, & Mr. Subhendu
Bhattacharya, Advs.
Mr. Ramesh Babu, Ms. Manisha
Singh, Ms. Tanya Chowdhary, Ms.
Jagriti Bharti Advs for RBI
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 30.01.2024
1. This hearing has been done through hybrid mode. CO.PET. 385/1998, CO.APPLs. 1561/2011, 5/2012 & OLR 263/2016
2. Issue notice in CO. APPLs.1561/2011 and 5/2012.
3. Last opportunity is granted to file reply by the OL and any other parties who wish to object to the present applications and the OLR.
4. It is made clear that no further adjournment shall be granted in these applications.
5. List on 24th April, 2024.
CO.APPLs.556/2019 & CO.APPL. 669/2013 in CO.PET.265/1998
6. List on 30th April, 2024.
7. Interim orders to continue.
CO.PET. 265/1998 & connected matters Page 3 of 10This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:49 CO.APPLs.19/2024 & 20/2024 in CO.PET.265/1998
8. Ld. Counsel for the Applicant wishes to withdraw these two applications. The applications are dismissed as withdrawn. CO.PET.265/1998 and CO.PET 113/2014
9. Vide order dated 30th November, 2023, this Court had allowed the office of the Official Liquidator to take requisite steps and directed an auction of the following property (hereinafter 'subject property'): -
Plot No. 51, Street No. 7, MIDC Andheri Mumbai.
10. The reserve price of the said property was fixed at Rs.88.90 crores. The sale notices were also published. The said order was challenged before the ld. Division Bench in Company Appeal No. 29/2023 in which an order dated 8th January, 2024 was passed. The said order is set out below:
"CM APPL 66052/2023 (Exemption) Allowed, subject to all just exceptions. Application stands disposed of.
CO.APP. 29/2023 & CM APPL 66051/2023 (stay)
1. Affidavit has been filed by Official Liquidator pursuant to order dated 03.01.2024.
2. Learned counsel for the Appellant disputes some of the contents of the affidavit and prays for time to file a response thereto. Let same be filed within one week.
3. List on 07.02.2024.
4. In the meantime, the Official Liquidator may proceed further with the auction of the property. However, the sale shall not be confirmed till the next date of hearing."
11. In addition, recall of the auction was also sought by way of Company Application 5/2024 filed in Company Petition 113/2014 in which after considering the matter, the Court had directed that the auction would proceed in terms of the order passed by the ld. Division Bench.
CO.PET. 265/1998 & connected matters Page 4 of 10This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:49
12. Today, the Court has been informed that the auction was conducted on 9th January, 2024 and one bid was received by M/s Beekalene Fabrics Private Limited for a sum of Rs. 88.90 crore which was the reserved price. The said bidder is stated to have deposited 10% EMD and 15% further consideration which was to be deposited within 7 days. Thus, 25% of the sale consideration has been deposited by the said bidder.
13. Mr. Sharma, ld. Counsel appearing for the OL submits that the OL's office would be moving an application for confirmation of the sale in favour of the successful bidder before the ld. Division Bench as the matter is listed on 7th February, 2024.
14. List on 29th February, 2024.
CO.APPLs.894/2023 & 908/2023 in CO.PET.265/1998
15. These are two applications relating to the sale of the property bearing Flat No.105, Panchatantra Apartments, Off Yari Road, Versova, Andheri (W), Mumbai. One of the applications is filed by the OL for confirmation of sale and the second application is by one of the bidders. The auction for the said property was conducted by M/s RailTel Corporation of India (hereinafter, 'RailTel') pursuant to the order 12th October, 2023 passed by this Court. As per the logs of RailTel, which were placed before the Court, there were only two bidders for the said property, Mr. Shrenik Jain and Ms. Swarnima Rathi.
16. As per the logs produced by RailTel, Mr. Shrenik Jain was the successful bidder with a bid of Rs.1,39,81,835/-. However, the confirmation of the sale is opposed by Ms. Swarnima Rathi, who is the applicant in CO.APPL.894/2023.
17. These two applications were considered by this Court on 12th CO.PET. 265/1998 & connected matters Page 5 of 10 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:49 December, 2023 and it was directed that if there were any other bidders, who were willing to give a higher bid, the said bidders shall be present in Court on the next date of hearing, i.e., 12th January, 2024.
18. Vide order dated 12th January, 2024, this Court considered the application and gave the following directions:
7. On the next date of hearing, each of the bidders or any other bidders are free to bring in a sealed cover the highest bid for this particular property mentioned at (c) upon which the Court shall pass appropriate orders. At this stage, Mr. Kunal Sharma, ld. Counsel for the OL submits that the new prospective buyers before the Court ought to be directed to make some deposits similar to the EMD paid by the current bidders.
8. Accordingly, this Court deems it appropriate to direct that the persons who wish to bid for the said property, shall on the next date of hearing also carry a demand draft for 10% of their respective bid amount before the Court, failing which, the bid would not be liable to be entertained.
19. In accordance with the above directions, three bidders who are willing to submit their bids in respect of the above Mumbai Property have submitted their bids in the Court. The three bidders are Mr. Javed Shroff, Mr. Shrenik Vimal Jain and Ms. Swarnima Rathi. On behalf of Mr. Javed Shroff, the bid of Rs.1.55 crore was submitted. On behalf of Ms. Swarnima Rathi, bid of Rs.1.71 crore was submitted. Ld. Counsel appearing for Mr. Shrenik Vimal Jain, the successful bidder has also matched the bid of Ms. Sharnima Rathi.
20. Thereafter, an open bidding was conducted in the Court.
21. Mr. Shroff dropped out from the bidding process. Mr. Jain and Ms. Rathi continued with the open bidding process. After multiple rounds of CO.PET. 265/1998 & connected matters Page 6 of 10 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:49 bidding in Court, in presence of Counsel for the parties as also Counsel for the OL, the highest bid now received is Rs.2.06 crores by Mr. Shrenik Vimal Jain.
22. In view of the above proceedings, Mr. Shrenik Vimal Jain is declared as the successful bidder. The successful bidder had already submitted and deposited 25% of Rs.1,39,81,835/-, which was the earlier bid. In view of the above, let the successful bidder now deposit the remaining balance amount after calculating 25% of Rs.2.06 crore within two weeks.
23. The sale in favour of Mr. Shrenik Vimal Jain is now confirmed. Let the remaining sale consideration be also deposited within 60 days from today.
24. Upon the deposit of the full sale consideration, the documents in favour of Mr. Shrenik Vimal Jain be executed and possession be handed over by the OL.
25. The amount deposited as EMD by Ms. Swarnima Rathi be returned by the OL within two weeks.
26. The demand draft handed over on behalf of Mr. Javed Shroff is returned to his Counsel present in Court today.
27. Applications are disposed of.
CO. APPL._____/2024 (to be numbered)
28. In view of today's proceedings, Mr. Shrenik Vimal Jain no longer presses his application filed vide Diary No.173300/2024 dated 24th January, 2024 wherein exemption for submitting fresh bid was sought as the same is now infructuous.
CO.PET.265/199829. Insofar as the Baghpat land is concerned, it is submitted by various CO.PET. 265/1998 & connected matters Page 7 of 10 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:50 applicants that the OL's office has not put this land on sale despite repeated orders of this Court as also the ld. Division Bench, etc.
30. Vide order dated 8th March, 2022, this Court had allowed CO.APPL. 257/2021 by which applicants sought directions to be be issued to the Official Liquidator to immediately take steps for selling of land of the company in liquidation located at Village Hasanpur Massuri, Khekra, Bhagpat, Uttar Pradesh. The relevant extract of the said order are set out below:
"CO.APPL. 257/20216. The applicant has filed the present application praying that directions be issued to the Official Liquidator to immediately take effective steps for selling of land located at Village Hasanpur Massuri, Khekra, Bhagpat, Uttar Pradesh, which belongs to the company in liquidation. The applicant further prays that the Official Liquidator may also be directed to make a scheme for distribution of the proceeds amongst the plot buyers of Charan Singh Awas Yojna, Khekra, Bhagpat, Uttar Pradesh.
7. The learned counsel for the Official Liquidator points out that efforts are already being made to sell all the properties of the company including the land belonging at Village Hasanpur Massuri, Khekra, Bhagpat, Uttar Pradesh. Certain persons have filed applications in respect of the part of the said land claiming that they are in rightful possession of the said property and those applications are pending consideration.
8. In view of the above, the Official Liquidator is directed to take effective steps for the sale of the land.
This is subject to any orders passed in any other proceedings or in other applications. The Official Liquidator shall also consider an appropriate scheme for distribution of the funds of the company amongst CO.PET. 265/1998 & connected matters Page 8 of 10 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:50 the various creditors, bearing in mind the orders passed by this Court and the Division Bench, at an appropriate stage.
9. The application is disposed of in the aforesaid terms."
31. It is noted that the above order was passed on 8th March, 2022 directing the OL to take effective steps for the sale of the said land in Bhagpat. Two years have passed and steps towards sale of land have not been taken by the OL's office. Serious allegations have been made against Mr. Kataria, official in the OL's office who is stated to be not processing the file expeditiously.
32. On behalf of the OL's office, Mr. Sharma, ld. Counsel submits that the valuation has been done and the OL's office is in the process of filing an application along with draft sale notice. If the OL's office does not file an application within the next two weeks for sale of the land in Bhagpat, Mr. Kataria and the Official Liquidator shall remain present in Court on the next date of hearing. It is directed that Mr. Kataria shall remain present on all days when the JVG matters are listed.
33. List on 29th February, 2024.
CO.APPL. 24/2024 in CO.PET.265/1998
34. Issue notice.
35. Let the OL as also any other parties who may have objection to this application file their replies within a period of two weeks.
36. List on 29th February, 2024.
CO.APPL.233/2023 in CO.PET.265/1998
37. Issue notice.
38. Let replies be filed by OL within a period of two weeks.
CO.PET. 265/1998 & connected matters Page 9 of 10This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:50
39. List on 29th February, 2024.
CO.APPL.59/2024 in CO.PET.265/1998
40. This is an application filed by Mr. Ravi Chikara who was the successful bidder in respect of property being Flat No. 104 Panchtantra Apartment, Panch Marg, Off Yari Road, Versova, Andheri (W), Mumbai The said property was put to auction and the applicant - Mr. Ravi Chikara was declared as the successful bidder as he had submitted a bid of Rs.2,03,73,510/- against a reserve price of Rs.1,33,16,030/-. The bid and the sale in his favour was confirmed vide order dated 8th May, 2023.
41. The prayer in this application is that the sale consideration deed and the other documents be executed jointly in favour of Mr. Ravi Chikara as also his wife - Ms. Renu Chikara.
42. The sale confirmation letter issued in favour of Mr. Ravi Chikara has been annexed with the application. The OL's office confirms the fact that Mr. Ravi Chikara was the successful bidder.
43. In view of the same, the prayer of the applicant is accepted. The proposed sale deed be executed by the OL, jointly in the name of Mr. Ravi Chikara and Mrs. Renu Chikara.
44. Application is disposed of.
PRATHIBA M. SINGH, J.
JANUARY 30, 2024 Dk/MR/Rahul/AM CO.PET. 265/1998 & connected matters Page 10 of 10 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:30:50