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Justice For All Through Secretary ... vs Reserve Bank Of India And Ors on 18 May, 2022

Author: Vipin Sanghi

Bench: Sachin Datta, Vipin Sanghi

                          $~7.
                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +      W.P.(C) 468/2022
                                 JUSTICE FOR ALL
                                 THROUGH SECRETARY SHIKHA SHARMA BAGGA
                                                                              ..... Petitioner
                                               Through: Mr. Khagesh B. Jha, Advocate with
                                                        petitioner in person.

                                                    versus

                                 RESERVE BANK OF INDIA AND ORS             ..... Respondents
                                              Through: Mr. Satish Kumar Tripathi, Standing
                                                        Court (Civil) GNCTD with Mr. Arun
                                                        Panwar and Mr. Siddharth K.
                                                        Dwivedi, Advocate for R-3.
                                                        Ms. Manisha Agrawal and Mr. Ayush
                                                        Acharjee, Advocates for R-4.
                                                        Mr. Anurag Ahluwalia, CGSC with
                                                        Mr. Shubham Gupta and Mr. Rishab
                                                        Narayan, Advocate for UOI.
                                                        Mr. Sanjay Katyal, Standing Counsel
                                                        with Ms. Chand Chopra, Advocate for
                                                        DDA.
                                 CORAM:
                                 HON'BLE THE ACTING CHIEF JUSTICE
                                 HON'BLE MR. JUSTICE SACHIN DATTA
                                                             ORDER

% 18.05.2022

1. The petitioner has preferred the present writ petition under Article 226 of the Constitution of India seeking the following reliefs:-

"(a) To held the mortgage/auction of the lease hold property of the respondent school, being unlawful/non-est, as the same is in violation/contrast of statutory mandate as contemplated under Section 7 read with Rule 94 of Delhi School Education Act & Rules, 1973, Signature Not Verified Digitaaly Signed By:BHUPINDER SINGH ROHELLA Signing Date:21.05.2022 12:23:13 also in utter violation of Rule 20 of Disposal of Developed Nazul Land Rules, 1981, read with terms of allotment of land owing agency, sponsorship conditions and recognition conditions of the Directorate of Education, GNCTD., ALTERNATELY, Direct the respondent no. 4 to impose the terms & conditions of auction of Nazul Land Rules, 1981, meant for Charitable Purpose as envisaged under Rule 20 of Disposal of Developed Nazul Land Rules, 1981, read with terms of allotment of land owing agency, sponsorship conditions and recognition conditions of the Directorate of Education, GNCTD.

(b) to direct respondent no. 7, Economic Offence wing to initiate investigation, for the misappropriation/syphoning of public fund by the respondent society w.e.f 2005, with the collusion of officers of respondent DDA/DOE/Bank, and to recover the amount from the members of society.

(c) to direct the DDA to cancel the allotment of land of the respondent school allotted to the respondent society RBSS.

(d) To direct the respondent DOE to inspect the records and audit the accounts of the respondent school and society w.e.f. 2005.

(e) to direct the DOE to cancel the sponsorship letter to the respondent society and to appoint an administrator to manage the day-to-day affairs of the respondent school in the interest of existing and prospective students of the school until the same is being handed over to other charitable trust/society.

(f) to direct the Union/State govt. to frame some laws for allotment of the Nazul land to only those Charitable societies/trusts, after ensuring that the said Charitable Society/trust have sufficient funds to meet the expense for building and other recurring expenses as per the terms of allotment of land.

(g) To direct the respondent Reserve Bank of India, to frame policy to restrict the mortgage of lease hold land, where the institution has been running.

(h) To pass any other or further orders this Hon'ble court deems fit based on above-mentioned facts and circumstances of the case.

(i) Allow the present writ petition with cost."

2. The case of the petitioner is that the respondent no. 3 - Raisina Bengali School Society (RBSS) was running respondent no. 2 - Raisina Bengali School. The petitioner alleges that the lease-hold plot allotted to the said respondent no. 3 - Society, for establishment of the school was mortgaged to obtain a loan from respondent no. 4 - ASREC India Limited.

The Society defaulted in the re-payment of the loan and consequently proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) was initiated by respondent no. 4.

3. The submission of learned counsel appearing on behalf of the petitioner is that the school plot could not have been mortgaged by the Society.

4. Mr. Santosh Kumar Tripathi, learned standing counsel appearing on behalf of GNCTD/respondent no. 6, on instructions, submits that GNCTD has decided to take over the school, which in any event has been an aided school. It is further stated that the GNCTD has negotiated with respondent no. 4. It has been agreed in principle that, in case, GNCTD makes lumpsum payment of the dues owed to respondent no. 4 by the Society, respondent no. 4 shall grant 25% rebate to the GNCTD.

5. Mr. Santosh Kumar Tripathi, learned standing counsel appearing on behalf of GNCTD, further submits that GNCTD shall ensure that the running of the school is not hampered on account of the action initiated by Signature Not Verified Digitaaly Signed By:BHUPINDER SINGH ROHELLA Signing Date:21.05.2022 12:23:13 respondent no.4. It is also pointed out by Mr. Tripathi that the students have initiated proceedings alleging financial irregularities by respondent no. 3 - Raisina Bengali School Society, and that GNCTD has already taken steps for audit of the accounts of the Society, and based thereon, further action would be taken.

6. In the light of the aforesaid, in our view, the primary grievance raised by the petitioner stands redressed.

7. We, accordingly, dispose of the present petition in the light of the aforesaid submission made by Mr. Santosh Kumar Tripathi, learned standing counsel appearing on behalf of GNCTD, which is also concurred by Ms.Manisha Agarwal, learned counsel appearing of respondent no. 4.

8. We hope and expect that GNCTD will act upon all the aforesaid representations within the next two months.

9. Before parting with this case, we express our concern on the conduct of the DDA in granting permission to the Society to mortgage the school plot which is a lease-hold plot, allotted only for the purpose of running school on 'no profit no loss basis'. It is no answer for the DDA to claim that the permission to mortgage was granted with the condition that the user of the plot would not be changed even by the transferee in the eventuality of the mortgage being enforced and the property being sold. The DDA has to be equally concerned with the fact that the working of the school itself would get disrupted which would put the future of the students studying in the school in jeopardy.

10. We, therefore, direct the DDA to re-consider their policy in this regard and take effective, preventive and remedial measures.

11. The petition is disposed of accordingly.

VIPIN SANGHI, ACJ SACHIN DATTA, J.

MAY 18, 2022/ AK Signature Not Verified Digitaaly Signed By:BHUPINDER SINGH ROHELLA Signing Date:21.05.2022 12:23:13