Delhi High Court - Orders
Cepco Industries Private Limited vs Tewari Restaurant Private Limited on 6 August, 2024
Author: Manmeet Pritam Singh Arora
Bench: Manmeet Pritam Singh Arora
$~3
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 17/2023 & CCP(O) 51/2023 I.A. 16516/2022 I.A.
6618/2023
CEPCO INDUSTRIES PRIVATE LIMITED .....Plaintiff
Through: Mr. Jai Sahai Endlaw & Mr. Ashish
Kumar and Ms. Shambhavi Kala,
Advs.
versus
TEWARI RESTAURANT PRIVATE LIMITED .....Defendant
Through: Mr. Abhimanyu Walia and Mr.
Yuvraj Singh and Mr. Yash
Aggarwal, Advs. with Mr. Vikram
Handa in person
CORAM:
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
ORDER
% 06.08.2024
1. Learned counsel for the plaintiff states that defendant is in wilful default of the orders dated 19.10.2023, 08.01.2024, 28.02.2024 and 07.05.2024. He states that defendant has failed to make payments towards admitted rental arrears despite using the suit premises for commercial purposes during the pendency of this suit.
2. Learned counsel for the defendant has handed over a statement on white paper running into four pages. He states that this statement contains a list of the movables left behind by defendant at the time of handing over of the physical possession of the premises to the plaintiff. He states that the value of the said movables is Rs. 2,07,29,591/-.
CS(COMM) 17/2023 Page 1 of 5This 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 08/08/2024 at 03:51:17 2.1. He states the said movables have been disposed of by the plaintiff to an individual to Mr. Sirajuddin Malik and in this regard he relies upon letter dated 11.05.2024 issued by the plaintiff to Mr. Sirajuddin Malik.
3. Upon enquiry from this Court, learned counsel for the defendant confirms on instructions from Mr. Vikram Handa that the said movables do not find any mention in the balance sheet of the defendant filed with the income tax authorities.
4. Learned counsel for the defendant states on instructions from Mr. Vikram Handa that Income Tax Returns (ITR) of defendant has not been filed for the year ending 31.03.2023 and 31.03.2024. He states infact defendant is unable to state the date on which the last ITR has been filed. He states Mr. Vikram Handa holds 65% shareholding in the defendant Company and is the erstwhile director of the said Company.
5. In response, learned counsel for the plaintiff states that the contentions of the defendant are false and bogus. He states that defendant had executed a handover letter dated 13.04.2024, which records that the articles left behind in the suit premises were worthless, unusable and in non- working condition. He states that Mr. Sirajuddin Malik is a scrap dealer and he will place on record the amount paid by Mr. Malik for the goods removed from the premises. He states that the defendant has submitted before this Court that Rs. 8,75,000/- is an admitted rent payable to the plaintiff. He states that on the basis of said admission of defendant a sum of Rs. 2,47,55,100/- is due and payable towards principal amount.
6. The plaintiff is directed to place on record the short note and documents handed over during the course of arguments.
7. In the considered opinion of this Court, the defendant continued to CS(COMM) 17/2023 Page 2 of 5 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 08/08/2024 at 03:51:17 occupy the suit premises during the pendency of the suit and despite directions of this Court wilfully defaulted in payment of rent and incurred the liability towards the rent during the pendency of the suit. Mr. Vikram Handa even as per his own showing was a director in the defendant Company on the date of institution of the suit i.e., 07.12.2021 and continued to remain a director until 26.06.2023. The defendant Company under the directorship of Mr. Vikram Handa continued to default in payment of rent. Mr. Vikram Handa is the majority shareholder in this company. Mr. Vikram is therefore liable for the default committed by the defendant in paying the rent during the pendency of the suit and also after the orders passed by this Court on 30.05.2023. During the course of arguments learned counsel for the defendant has handed over Company information downloaded from website of MCA1 on 05.08.2024. A perusal of the said information shows that the last balance sheet filed by the Company with the ROC 2 is 31.03.2019. It therefore appears that the defendant is non-compliant with its statutory obligations under the Companies Act, 2013, Income Tax Act, 1961 as well as towards its contractual liability towards its debtors such as the plaintiff. It appears that the defendant is carrying on its activities with an intent to defraud third parties including statutory authorities by not making payments of admitted dues.
8. Further, the statement of movables on a white sheet containing four pages handed over by the defendant fails to inspire any confidence considering the admitted facts that the defendant has not reflected these movables in its audited books of accounts. Even otherwise, the said 1 Ministry of Corporate Affairs 2 Registrar of Companies CS(COMM) 17/2023 Page 3 of 5 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 08/08/2024 at 03:51:18 statement is an unsigned document. The contents of the said statements are also belied by the letter dated 13.04.2024 executed by the defendant at the time of handing over the physical possession.
9. Accordingly, Mr. Vikram Handa, who is present in Court, is directed to file his personal ITRs along with audited accounts for the year ending 31.03.2021 to 31.03.2023. Mr. Vikram Handa is also file his provisional audited accounts for the period ending 31.03.2024. He is also directed to place on record the date on which the statutory form pertaining to his cessation as a director was uploaded on the website of the MCA alongwith certified copy of the statutory form.
10. In addition, the defendant Company will also file on record the certificate from its Chartered Accountant with respect to value of movable assets of the defendant company lying at the suit premises as per the ledgers of the defendant Company as on 31.03.2021, 31.03.2022, 31.03.2023 and 31.03.2024. The Chartered Accountant shall bear in mind that the certificate being filed by him before the Court will be scrutinized in these legal proceedings and therefore the certificate must bear a Unique Document Identification Number ('UDIN') and the certificate must be issued in compliance with the ICAI Rules.
11. Learned counsel for the defendant states on instruction from Mr. Handa that defendant requires two days to file the certificates of Chartered Accountant.
12. List on 09.08.2024 at 02:30 PM.
13. Mr. Vikram Handa is directed to be remain personally present in Court on the next date of hearing.
14. The digitally signed copy of this order, duly uploaded on the official CS(COMM) 17/2023 Page 4 of 5 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 08/08/2024 at 03:51:18 website of the Delhi High Court, www.delhihighcourt.nic.in, shall be treated as a certified copy of the order for the purpose of ensuring compliance. No physical copy of order shall be insisted by any authority/entity or litigant.
MANMEET PRITAM SINGH ARORA, J AUGUST 6, 2024/hp/sk Click here to check corrigendum, if any CS(COMM) 17/2023 Page 5 of 5 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 08/08/2024 at 03:51:18