Delhi High Court - Orders
Horizon Crest India Real Estate & Ors vs Vidur Bhardwaj & Ors on 16 August, 2021
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~4
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ OMP (ENF.) (COMM.) 6/2021 & EX.APPL.(OS) 444/2021 &
838/2021
HORIZON CREST INDIA REAL
ESTATE & ORS ..... Decree Holders
Through Mr Saurav Agrawal, Mr Saurajay
Nanda, Mr Ribhu Garg, Mr Vinay
Misra, Ms Kavya Pahwa, Mr Kapil
Rustagi, Advocates.
versus
VIDUR BHARDWAJ & ORS. ..... Judgement Debtors
Through Mr Vivek Sibal, Senior Advocate
with Mr Dhananjay Jain, Mr Anurag
Ojha, Mr Shivam Malhotra,
Mr Gautam Barnwal, Advocates for
JD-4.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
ORDER
% 16.08.2021 [Hearing Held Through Videoconferencing]
1. The petitioner has filed this petition under Section 36 of the Arbitration and Conciliation Act, 1996 (A&C Act) seeking enforcement of an arbitral award against the respondents.
2. Mr Agrawal, learned counsel appearing for the petitioners (Decree Holders) states that despite several orders, respondent no.1 (Judgment Debtor no.1) has not made a true disclosure as required. He submits that the respondent no.1 has not disclosed the assets held by him on the date of the Signature Not Verified Digitally Signed By:DUSHYANT RAWAL cause of action. Further, respondent no.1 has also not disclosed the details of the assets transferred to his relatives and other associates, as required.
3. Mr Sibal, learned senior counsel appearing for the respondent no.1 states that the respondent no.1 has made true disclosure as required in terms of the decision of the Coordinate Bench of this Court in M/s Bhandari Engineers & Builders Pvt. Ltd. vs. Maharaja Raj Joint Venture & Ors.:
Ex.P. 275/2012 decided on 05.08.2020. He states that as far as disclosure of assets held by respondent no.1 on the date of cause of action is concerned, the claim filed before the Arbitral Tribunal did not disclose any date of cause of action. He further submits that there is no averment made by the petitioner, to the effect that the respondent no.1 is alienating his assets or is acting in a manner to frustrate the enforcement of the Award.
4. Mr Agrawal has screen shared a part of the affidavit filed by respondent no.1 before this Court. The same indicates that the respondent no.1 has not disclosed his assets as on the date of the cause of the action. He has also pointed out that although the affidavit states that the respondent no.1 has not transferred any asset to his wife, there are indications to the contrary.
5. Even though there are no averments that respondent no.1 is acting in a manner frustrate the award; contentions to the said effect has been advanced by Mr Agrawal on a number of occasions. The affidavit filed by the respondent no.1 also indicates that he does not have sufficient assets to discharge the Award.
6. In the circumstances, the contention that respondent no.1 is alienating his assets cannot be ignored. Respondent no.1 is directed to file an affidavit Signature Not Verified Digitally Signed By:DUSHYANT RAWAL clearly indicating his entire assets held by him on the date when the notice of arbitration was issued under Section 21 of A&C Act, which Mr Agrawal states was issued on 09.10.2017. Respondent no.1 shall also disclose whether he has transferred any assets to any of his family members or any associates after the date of notice under Section 21 of the A&C Act and shall also disclose the details of said assets. Let the said affidavit be filed within a period of two weeks from today.
7. Mr. Sibal, learned senior counsel appearing for the respondents (Judgment Debtors) refers to the decision of the Division Bench of this Court in Delhi Chemical and Pharmaceutical Works Pvt. Ltd. & Anr. vs. Himgiri Realtors Pvt. Ltd. & Anr.: EFA (OS)(COMM) 4/2021 decided on 05.07.2021. He contends that the judgment in the case of M/s Bhandari Engineers & Builders Pvt. Ltd. (supra) is no longer a good law and, therefore, the respondent no. 1 is not required to disclose assets in terms of the said decision. However, Mr Sibal does not dispute that in the event this Court requires the respondent to disclose certain information, the respondent would be bound to do so. It is clarified that the directions issued to the respondents to file an affidavit as per the annexures in decision in M/s Bhandari Engineers & Builders Pvt. Ltd. (supra) was issued by this Court specifically to elicit certain information. Instead of setting out the details and the information required, this Court had directed that an affidavit be filed in terms of the annexures to said judgment.
8. Given the contentions advanced on behalf of the petitioners, this Court considers it necessary that the respondents make a complete disclosure as that is necessary to ascertain whether they are acting in a Signature Not Verified Digitally Signed By:DUSHYANT RAWAL manner to frustrate the Award, which has been made against them.
9. List on 09.09.2021.
VIBHU BAKHRU, J AUGUST 16, 2021 nn Signature Not Verified Digitally Signed By:DUSHYANT RAWAL