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Delhi High Court - Orders

Re-M/S Jvg Finance Ltd vs Unknown on 18 March, 2021

Author: C.Hari Shankar

Bench: C.Hari Shankar

                          $~7 (company)
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                                CO.APPL.          1132/2019,        CO.APPL.1007/2019,
                                CO.APPL.737/2019, CO.APPL.148/2020, CO.APPL.278/2020,
                                CO.APPL.607/2020,      CO.APPL.699/2020,      CO.APPL.
                                716/2020, CO.APPL. 253/2021, CO.APPL. 254/2021,
                                CO.APPL. 255/2021, CO.APPL. 256/2021, CO.APPL.
                                257/2021, CO.APPL. 258/2021, CO.APPL. 259/2021 in
                          +     CO.PET. 265/1998
                                RE-M/S JVG FINANCE LTD.                   ..... Petitioner
                                               Through: Ms.Monika          Arora         and
                                               Mr.Shriram Tiwary, Advs. for the applicants
                                               Deepak Joshi and Santosh Joshi/C.A.
                                               253/2021, 254/2021, 255/2021 & 256/2021
                                               Mr.Ramesh Babu, Ms.Manisha Singh,
                                               Ms.Sanya     Panjwani    and       Ms.Tanya
                                               Chowdhary, Advs. for Reserve Bank of
                                               India
                                               Mr. Dheeraj Gupta, Adv. with Ms.Aneeta
                                               Sharma (AR of Ex-Management)
                                               Mr.Rajshekhar Rao and Mr.Rishabh Jain,
                                               Advs.    in   C.A.737/2019,       1037/2019,
                                               1132/2019, 278/2020
                                               Mr.Bhaskar Vali, Adv. for C.A.257 &
                                               258/2021
                                               Mr.Amit Goel, Adv. for C.A.148/2020
                                               Mr.Kunal Sharma and Mr.Shubhendu
                                               Bhattacharyya, Advs. for the Official
                                               Liquidator
                                CORAM:
                                HON'BLE MR. JUSTICE C.HARI SHANKAR
                                         ORDER

% 18.03.2021 CO.APPL.737/2019

1. This is an application by the ex-directors of M/s JVG Finance Ltd.(under liquidation and referred to hereinafter as "the Company"), CO.PET. 265/1998 page 1 of 8 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI Signing Date:22.03.2021 17:25:03 for a direction to the Official Liquidator to inspect the Baghpat land belonging to the Company, identify the persons encroaching thereon, take action against them, fix the sale of the Official Liquidator on the shops which were allegedly encroached upon, depute security guards and take possession of the land.

2. On 26th July, 2019, this Court had directed the Official Liquidator to carry out inspection of the aforesaid land within three weeks and to deploy one security guard during the day time at the site premises. Directions were also issued to put up boards showing that the property was in the custody of the Official Liquidator. The Official Liquidator has filed OLR No. 261/2019, stating, in paras 3 to 5 thereof, thus:

"3. That in compliance of the order dated 26.07.2019, the team of the Official Liquidator visited the site in question i.e Choudhary Charan Singh Awas Yojana, Village Husanpur, Masuri, Tehsil Khekhra, District Baghpat, Uttar Pradesh on 16.08.2019. Mr. V. K. Sharma, Ex-Director of JVG Finance Ltd. (In Liqn.) was also present at the site. After identification of the land by the ExDirector of the Co. (In Liqn.) a joint inspection of the land was carried out. As per the minutes of the team, it was observed that on the main entrances gate of the site, a board was found installed, which was not legible/readable. At the time of inspection, it was also found that someone has tried to encroach the land by digging the internal road at the site. The team also deployed one guard of Mis. Kat Eye Security Services for day time i.e from 10 am to

6 pm for watch and ward of the site. The team painted the existing iron broad and on the existing shops/structures at the site in question. Copy of Minutes recorded at the site on 16.08.2019 alongwith true typed copy and photographs of the board and the shops/structures are annexed and marked as Annexure B (Colly).

4. That one Mr. Pawan K. Jain submitted a letter dated CO.PET. 265/1998 page 2 of 8 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI Signing Date:22.03.2021 17:25:03 27.08.2019 and 09.09.2019 to the Official Liquidator, stating that he is owner of a portion of plot at Khasara no. 14 and 17, which was a commercial complex at village Hasanpur, Masoori, Tehsil Khekra, Baghpat UP. Further he stated that the official team of the Official Liquidator visited the aforesaid site on 16.08.2019 and under mistaken impression removed their board and erased marking on the shop. Copy of Revenue record of Khasra no. 14 and 17, Village Hasanpur Masuri, Tehsil Kkekra, District Baghpat, UP submitted to this office with his letter dated 09.09.2019 and 27.08.2019 are annexed and marked as Annexure C (Colly).

5. That a meeting was called by the Official Liquidator with the ExManagement for clarifying the issue raised by Mr. Pawan Kumar Jain. A meeting was held on 13.09.2019 with Mr. V. K. Sharma, Ex-Director of JVG Finance Ltd. (In Liqn.). During the course of meeting Mr. V. K. Sharma stated that the company in liquidation had being three (3) projects in his memory that Choudhary Charan Singh Awas Y ojna, Baghpat, JVG Enclave, Haridwar, Lok Nayak Awas Yojna in Bihar and JVG Hills at Hyderabad. Further he also stated that an affidavit dated 29.11.1999 has been filed before the Hon'ble Court wherein he had declared all the assets of the Company (In Liqn.) and some of the land was purchased under agreement to sale and GP A executed in favour of JVG Finance Ltd. Mr. V. K. Sharma further also pointed out that on the basis of GPA and Agreement to sale, Mr. Pawan Kumar Jain had already disposed of Khasra No. 14 and 17, Village Hasanpur Masuri, Tehsil Kkekra, District Baghpat, UP in favour of NG Finance Ltd. in the year 1990 and Official Liquidator has already filed OLR 400/2013 for seeking necessary direction to Mr. Pawan Kumar Jain to executed the sale deed in favour of Company (In Liqn.) as the possession of the land was with the Official Liquidator, hence Mr. Pawan Kumar Jain having already obtained consideration for the said land and having handed over possession to the company in liquidation has no right on the aforesaid property. Copy of minutes of the meeting dated 13.09.2019 are annexed and marked as Annexure D."

3. In view thereof, nothing further survives to be decided in this CO.PET. 265/1998 page 3 of 8 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI Signing Date:22.03.2021 17:25:03 application which is accordingly disposed of.

CO.APPL. 148/2020

1. Notice was issued on this application for the second time on 13th January, 2021.

2. The Registry reports, yesterday, that notice was not submitted for endorsement on behalf of the Official Liquidator and could not, therefore, be issued.

3. Issue fresh notice to the respondent in this application on the applicant positively taking steps within two days from today. Response to this application be filed within a period of four weeks with advance copy to learned Counsel for the applicant who may file rejoinder thereto, if any, within two weeks thereof.

4. Renotify the application for disposal subject to completion of pleadings on 18th May, 2021.

CO.APPL. 607/2020

1. Exemption allowed subject to all just exceptions.

2. The application is disposed of.

CO.APPL. 699/2020

1. Issue notice, returnable on 18th May, 2021.

2. Notice is accepted on behalf of the Official Liquidator by Mr. CO.PET. 265/1998 page 4 of 8 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI Signing Date:22.03.2021 17:25:03 Kunal Sharma. Response to this application, if any, be filed within a period of four weeks with advance copy to learned Counsel for the applicant who may file rejoinder thereto, if any, within two weeks thereof.

3. Renotify on 18th May, 2021.

CO.APPL. 716/2020

1. Issue notice, returnable on 18th May, 2021.

2. Notice is accepted on behalf of the Official Liquidator by Mr. Kunal Sharma. Let notice issue to Respondent No.2 by all modes.

3. Response to this application, if any, be filed within a period of four weeks with advance copy to learned Counsel for the applicant who may file rejoinder thereto, if any, within two weeks thereof.

4. Renotify on 18th May, 2021.

CO.APPL. 254/2021 & CO.APPL. 256/2021 (exemptions)

1. Exemption allowed subject to all just exceptions.

2. The applications are disposed of.

CO.APPL. 253/2021 & CO.APPL. 255/2021

1. Issue notice, returnable on 19th May, 2021.

CO.PET. 265/1998 page 5 of 8 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI Signing Date:22.03.2021 17:25:03

2. Notice is accepted on behalf of the Official Liquidator by Mr. Kunal Sharma and on behalf of the ex-directors by Mr. Dheeraj Gupta. Let response to this application, if any, be filed within a period of four weeks with advance copy to learned Counsel for the applicant who may file rejoinder thereto, if any, within two weeks thereof.

3. Renotify on 19th May, 2021.

CO.APPL. 258/2021

1. Exemption allowed subject to all just exceptions.

2. The application is disposed of.

CO.APPL. 257/2021

1. Though learned Counsel for the applicant questions the locus of the former directors qua this application, this Court deems it appropriate that they be also heard before a decision is taken on this application.

2. In view thereof, issue notice, returnable on 5th May, 2021.

3. Notice is accepted on behalf of the Official Liquidator by Mr. Kunal Sharma and on behalf of the former directors by Mr. Dheeraj Gupta. Response to this application, if any, be filed within a period of four weeks with advance copy to learned Counsel for the applicant who may file rejoinder thereto, if any, within two weeks thereof.

CO.PET. 265/1998 page 6 of 8 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI Signing Date:22.03.2021 17:25:03

4. Renotify on 5th May, 2021.

5. The Registry is also directed to forward copy of the application with all annexures to learned Counsel for the former directors.

CO.APPL. 259/2021

1. By this application the Official Liquidator seeks confirmation by this Court of sale of land of M/s JVG Finance Ltd. (under liquidation and referred to hereinafter as "the Company"), located at Khewat/Khata No.386, Killa No.100/1/1, 4-2 (at serial no.12) situated at Village Sidhrawali, Tehsil Manesar, District Gurugram (Haryana).

2. Mr.Dheeraj Gupta, learned Counsel for the ex-directors confirms that the ex-directors have no objection to the sale of the subject land in favour of Mr. Goutam Motika.

3. The recitals of facts in the application reveals that, vide order dated 2nd February, 2021, this Court had permitted the Official Liquidator to conduct e-auction of the properties of the company under liquidation located at Village Sidhrawali, Tehsil Manesar, District Gurugram (Haryana) through M/s Railtel Corporation Ltd. In compliance therewith, notices were published in the English and Hindi newspapers, inspection of the properties of the Company was provided to prospective buyers on 16th and 17th February, 2021, and e- auction was conducted on 25th February, 2021 in respect of the subject land. Only one buyer, namely Mr. Goutam Motika participated in the CO.PET. 265/1998 page 7 of 8 Signature Not Verified Digitally Signed By:SUNIL SINGH NEGI Signing Date:22.03.2021 17:25:03 auction. EMD, (being 10% of the reserve price) of ₹ 4,14,100/- was deposited online and the remaining 25% of the bid amount of ₹6,30,000/- was paid through demand draft on 1st March, 2021. Consequent to the e-auction, Mr. Motika was declared as the successful bidder for the property, for a bid price of ₹41,41,000/-, which was the reserve price fixed in respect of the property.

4. In view thereof, this Court sees no reason not to confirm the sale of the said property in favour of Mr.Motika. Accordingly, the sale of property of M/s JVG Finance Ltd. located at Khewat/Khata No.386, Killa No.100/1/1, 4-2 (at serial no.12) situated at Village Sidhrawali, Tehsil Manesar, District Gurugram (Haryana), is confirmed in favour of Mr. Goutam Motika. The Official Liquidator may proceed to recover the remaining sale consideration from Mr. Motika and execute the sale deed in his favour thereafter and to handover the possession of the aforesaid property to Mr. Motika after receiving the entire sale consideration.

5. The application stands allowed accordingly.

CO.APPL. 1132/2019, CO.APPL.1007/2019 & CO.APPL.278/2020

1. Owing to paucity of time, it is not possible to take up these applications today.

2. Renotify for disposal at the end of the Board subject to part- heard matters, if any, on 4th May, 2021. 

                          MARCH 18, 2021/kr                            C.HARI SHANKAR, J
                          CO.PET. 265/1998                                          page 8 of 8
Signature Not Verified
Digitally Signed
By:SUNIL SINGH NEGI
Signing Date:22.03.2021
17:25:03