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Edelweiss Investments Adviser Limited vs Lily Realty Private Limited & Anr on 14 December, 2021

Author: Manmohan

Bench: Manmohan, Navin Chawla

                          $~78
                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +      FAO(OS) (COMM) 159/2021

                                 EDELWEISS INVESTMENTS ADVISER LIMITED ..... Appellant
                                                    Through      Mr. Harish N Salve Senior Advocate
                                                                 and Mr. Parag P. Tripathi Senior
                                                                 Advocate with Mr. Atul Sharma Adv,
                                                                 Mr. Tanmaya Mehta Adv, Mr. Kamal
                                                                 Gupta Adv, Ms. Renuka Iyer, Adv,
                                                                 Mr. Aditya Vashisth Adv, Mr. Dev J
                                                                 Roy, Adv and Ms. Himanshi Rajput,
                                                                 Adv.
                                                    versus
                                 LILY REALTY PRIVATE LIMITED & ANR.         ..... Respondents
                                               Through  Dr.Abhishek Manu Singhvi, Sr.Adv.,
                                                        Mr. Jayant Bhushan, Sr. Adv.
                                                        with Ms.Nidhi Ram Sharma,
                                                        Mr.Siddharth Nigotia. and Mr.Varun
                                                        Agarwal, Advs. For R-1.
                                                                 Mr. Rajeev Mehra, Sr. Adv. with Mr.
                                                                 Manu Rajvanshi, Adv and
                                                                 Mr.Siddharth Nigotia, Adv for R-2.
                                                                 Mr.Rajshekhar Rao, Sr.Advocate with
                                                                 Ms.Milakshi Lakhani, Ms.Aanchal
                                                                 Tekmani, Adv and Mr.Milind Jain,
                                                                 Advocates for IIFL Wealth.
                               CORAM:
                               HON'BLE MR. JUSTICE MANMOHAN
                               HON'BLE MR. JUSTICE NAVIN CHAWLA
                                          ORDER

% 14.12.2021 C.M.No.43417/2021 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of.

Keeping in view the averments in the application, the delay of ten days in filing the present appeal is condoned.

Accordingly, the present application stands disposed of. FAO(OS) (COMM) 159/2021 Present appeal has been filed challenging the order dated 22nd September, 2021 passed by the learned Single Judge in CS (COMM) No.397/2020.

Learned senior counsel for the appellant states that the impugned order and the alleged successive non effective order(s) have caused inordinate delay in adjudication of the Appellant's Application bearing I.A No.12347/2021 under Order XXXVIII Rule 5 read with Order 39 Rule 1 and 2 CPC, which is on the verge of being rendered infructuous and the appellant shall be left remediless in the said suit.

Learned senior counsel for the appellant states that the suit filed by IIFL Group against respondent no.2 had been decreed on 16th December, 2020 in accordance with consent terms. He further states that, pursuant to the consent terms, the respondent no.2 is under a duty and an obligation to sell his current shareholdings i.e. 85,84,030 shares in the ASK and accordingly the said encumbered/pledges shares are being sold to BCP Topco XII Pte. Ltd. (BCP), a Singaporean entity, at a consideration of Rs.707/- per share i.e. for a total consideration of Rs.606,92,62,596/-. He states that if an interim order is not passed, the said sale proceeds i.e. Rs.606,92,62,596/- shall be dissipated by respondent no.2.

Issue notice.

Mr.Varun Agarwal, Advocate accepts notice on behalf of respondent no.1, Mr.Manu Rajvanshi, Advocate accepts notice on behalf of respondent no.2 and Mr.Milind Jain, Advocate accepts notice on behalf of IIFL Wealth.

Dr.Abhishek Manu Singhvi, learned senior counsel submits that the present appeal is not maintainable. He further submits that this Court has no territorial jurisdiction to entertain the suit filed by the appellant/plaintiff. He also states that the appellant is an un-secured creditor and has no right or interest in 85,84,030 shares of respondent no.2 in the ASK.

During the hearing, we have been informed that respondent no.2 has till date not received the consideration of Rs.606,92,62,596/-. Dr.Singhvi assures and undertakes to this Court that, in the event, any consideration is received against the sale of 85,84,030 shares, the said fact shall be intimated to the Division Bench forthwith by mentioning the matter orally.

Since the matter is already listed before the learned Single Judge tomorrow, we direct the learned Single Judge to expedite the hearing of I.A No.12347/2021. We have no doubt that the learned Single Judge shall make an endeavour to dispose of the said application as expeditiously as possible. This Court is assured by learned counsel for the parties that none of them will take an adjournment before the learned Single Judge.

List on 22nd December, 2021.

MANMOHAN, J NAVIN CHAWLA, J DECEMBER 14, 2021 KA Signature Not Verified Digitally Signed By:KRISHNA BHOJ Signing Date:14.12.2021 20:09:10