Delhi High Court - Orders
Re-M/S Jvg Finance Ltd vs Unknown on 30 November, 2023
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~C1
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CO.PET. 265/1998
RE-M/S JVG FINANCE LTD. ..... Petitioner
Through: Mr. Raja Chatterjee, Mr.
Harshvardhan Jha Mrs. Yugandhara
Pawar Jha, Mr. Aman Pathak Advs.
(M. 9971121185)
Mr. Robin David & Ms. Ruchi
Khurana, Advs. (M. 9811170646)
Mr. Tanmay Yadav, Adv. (M.
9971526082)
versus
.... ..... Respondent
Through: Mr. Kailash Vasdev, Sr. Adv. with
Mr. Anil Karnwal, Adv. R-2 (M.
9810044429)
Mr Gaurav Gupta, Sr Standing
Counsel with Mr Shivendra Singh
and Mr. Puneett Singhal, Jr Standing
Counsels and Ms Mahima Garg and
Ms Deepika Goyal, Advs. (M.
9582194010)
Mr. Ankur Mittal, Mr Raushal
Kumar, Advocates for Applicants in
CA 522/2021 & 630/2023. (M:
9818392824)
Mr. Aman Vachher, Ms. Abhiti
Vachher, Mr. Akshat Vachher, Mr.
Amit Kumar & Mr. Ashutosh Dubey,
Advs. for Hyderabad plot owners.
(M: 9953587630)
Mr. Amit P Shahi, Adv. for
applicant. (M: 9582695868)
Mr. Rajshekhar Rao, Sr. Adv. with
Mr. Krishna J. & Mr. Aaditya
CO.PET. 265/1998 Page 1 of 8
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 07/12/2023 at 20:38:27
Mishra, Advs. for Applicant. (M:
8377029717)
Mr. Nikhil Nayyar, Sr. Adv. with
Ms. Ashu Kansal, Ms. Anushka
Sarker & Mr. Divyanshu Rai, Advs.
for Applicants in CA 1181, 1051,
1063, 1041, 1055, 1071, 1414, 1061,
1053, 1067 of 2014. (M:
7751848892)
Mr. Ramesh Babu, Ms. Manisha
Singh, Ms. Tanya Chowdhary
Advocates for RBI. (M:
9971671294)
Mr. Amit Goel, Adv. for applicant in
CA 148/2020. (M: 9810122373)
Ms. Anjani Aiyagari & Mr. Ram Lal
Roy, Advs. for Applicant in CA
8/2021. (M: 9810411604)
Mr Vinayak Marwah, Advocate for
applicant in CA 925/2014. (M:
9810522185)
Mr. Ashish Dholakia, Sr. Adv. wtih
Mr. Dheeraj Gupta, Adv. and AR
Ms. Aneeta Sharma in person. (M:
7210670704)
Mr. Kunal Sharma, Adv. for OL.
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 30.11.2023
1. This hearing has been done through hybrid mode.
CO.APPL.829/20232. This is an application filed by the Official Liquidator (OL) seeking permission to take requisite steps for sale of the property located at Plot CO.PET. 265/1998 Page 2 of 8 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 07/12/2023 at 20:38:27 No.51, Street No.7, MIDC, Andheri, Mumbai (hereinafter,'Mumbai property').
3. Vide the order 17th January, 2003 passed by the Hon'ble High Court of Bombay in CP No.767/1997 titled Industrial Development Bank of India v. Official Liquidator, High Court, Bombay and Anr. the Mumbai property was directed to be handed over to the OL - Mumbai in view of the fact that it was found that the said property was sold by Orkay Industries Ltd. to JVG Industries Ltd i.e., Company (in liqd.). Thereafter, the said order was recalled on 17th January, 2018 and it was clarified that the OL - Delhi can deal with the Mumbai property and the same had been in possession of the OL - Delhi.
4. The valuation report of this property submitted by M/s M Tech Services LLP was considered by this Court on 12th October, 2023 and this Court directed the OL to prepare a draft sale notice on the basis of the said valuation report and present the same before the Court.
5. Ld. Senior Counsel appearing for the ex-management of the Company (in liqd.) handed over a chart on the last date of hearing to submit that the amounts, which are lying with the OL are sufficient to deal with the claims against the Company (in liqd.). The said chart was also handed over to the ld. Counsel for the OL.
6. Today, submissions have been made on behalf of the OL in respect of the chart handed over by the Ex-Management of the Company in liquidation. The stand of the OL as on date is that as per the RBI's report the total deposits from the public in the Company (in liqd.) were to the tune of Rs. 88 crores and the claims filed by the depositors were to the tune of Rs.71 crores. A substantial number of claims have not been released/paid as many CO.PET. 265/1998 Page 3 of 8 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 07/12/2023 at 20:38:28 depositors were either not traceable or have not approached the OL after filing claims.
7. It is further submitted by ld. Counsel for the OL that the claims that have been admitted and cleared are 15784 claims out of 71677 claims. The amount released in respect of these claims is Rs.22,24,63,702/-. Interest thereon may be liable to be paid, however, the Court is not adjudicating the same. In respect of the unclaimed amounts by the depositors, the liability could be to the tune of Rs.43 crores.
8. Mr. Kunal Sharma, ld. Counsel for the OL submits that in terms of order dated 21st April, 2011 persons who had purchased the plots in Baghpat, are also entitled to additional compensation. Thus, the funds lying with the OL may not be sufficient to satisfy all the claims, which would have to be considered and adjudicated by this Court.
9. Mr. Gaurav Gupta, ld. Counsel for the Income Tax Department, submits that the claims of the Income Tax Department have been crystalized to the tune of Rs.350 crores approximately. In addition, certain fines have also been directed to be paid by the criminal Court and the same are to the tune of Rs.4.97 crores.
10. The Court has head ld. Counsels for all the parties concerned as also Mr. Dholakia, ld. Sr. Counsel appearing for the Ex-Management. The funds currently lying with the OL are to the tune of Rs.7.44 crores. Clearly, the funds lying with the OL may not be sufficient, considering the large expanses of land for which security is being provided, the expenses which the OL office is incurring on a daily basis in respect of thousands of depositors and the possible claims that may have to be considered. Insofar CO.PET. 265/1998 Page 4 of 8 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 07/12/2023 at 20:38:28 as the Income Tax claims and the directions by the criminal court are concerned, this Court is not considering the same at this stage.
11. Under such circumstances, the Court is of the opinion that further funds would be required to be secured if a final resolution to this matter is to be seen. Once the Court adjudicates the claims, which are pending or rejected and if there is any surplus, the Court can adjust equities at that stage.
12. In view thereof, the draft sale notice attached to this application is approved.
13. The OL is permitted to publish the sale notice for the Mumbai property in the Loksatta (Marathi), Hindustan Times, Mumbai edition (English), Hindustan Times, Delhi edition (English) and Navbharat Times, Delhi (Hindi).
14. In terms of the valuation report attached to the application, the reserve price fixed in the sale notice to the tune of Rs.88.90 crores. The same is also approved.
15. Let the steps to publish the same be taken within two weeks. Let the sale of the Mumbai property be effected by Auction through M/s. Railtel Corporation of India Ltd.
16. Accordingly, this application is allowed and disposed of.
CO.APPL.148/202017. This is an application filed by Mr. Kuldeep Kallo, proprietor of Metro Nirvana, who claims to be the auction purchaser of the land measuring 17.08 acres situated at Village Konaghatta, Cassava Hobli, Doddaballapur Taluk, Bangalore, Karnataka.
CO.PET. 265/1998 Page 5 of 8This 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 07/12/2023 at 20:38:28
18. The case of the Applicant is that he had purchased the land through auction on 17th May, 2006 for consideration of Rs.2.05 crores. The entire consideration has been paid by the purchaser. The grievance of the Applicant is that the sale deed has been executed by the Tehsildar and the possession has also been given but the revenue records are not updated due to certain objections raised by one Mr. Achyut Chand Sharma.
19. It is submitted by Mr. Amit Goel, ld. Counsel for the Applicant that Achyut Chand Sharma has raised objections to the said sale. However, he has been unsuccessful, and Division Bench of this Court vide order dated 13th July 2016 in C.M. APPL.2831/2014 and the Hon'ble Supreme Court vide order dated 10th November, 2017 in SLP (C) No.16054/2017 has clearly rejected the pleas of Mr. Achyut Chand Sharma.
20. In view of the above, the Tehsildar is to be directed to update the revenue record.
21. List this application for hearing separately on 19th January 2024. CO.APPLs. 1633/2011, 1635/2011, 1637/2011, 1639/2011, 1641/2011, 1643/2011, 1645/2011, 1649/2011, 1651/2011, 1653/2011, 1655/2011, 1657/2011, 1659/2011, 1661/2011, 1647/2011, 1663/2011, 1667/2011, 1669/2011, 1671/2011, 1673/2011, 1675/2011, 1677/2011, 1679/2011, 1681/2011, 1683/2011, 1685/2011, 1687/2011, 1689/2011, 1691/2011, 1693/2011, 1695/2011, 1697/2011, 1703/2011, 1705/2011, 1707/2011, 1708/2011, 1710/2011, 1712/2011, 1714/2011, 1716/2011, 1718/2011, 1720/2011, 1722/2011, 1724/2011, 1726/2011, 1728/2011, 1730/2011, 1732/2011, 1734/2011, 1736/2011, 1738/2011, 1740/2011, 1742/2011, 1744/2011, 1746/2011, 1748/2011, 1750/2011, 1796/2011, 1798/2011, 1811/2011, 1813/2011, 1815/2011, 2274/2011, 2277/2011, 2280/2011, 2283/2011, 2292/2011, 2295/2011, 2298/2011, 2301/2011, 2304/2011, 2307/2011, 2310/2011, 2313/2011, 2359/2011, 233/2012, 234/2012, 446/2012, 448/2012, 452/2012, 454/2012, 456/2012, 458/2012, 460/2012, 462/2012, 466/2012, 468/2012, 470/2012, 472/2012, 474/2012, 476/2012, 478/2012, 480/2012, 1406/2012, 1414/2012, 1416/2012, 1419/2012, CO.PET. 265/1998 Page 6 of 8 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 07/12/2023 at 20:38:28 1422/2012, 1425/2012, 1428/2012, 1431/2012, 1434/2012, 2771/2012, 130/2012-139/2012, 886/2014, 1037/2014, 1041/2014, 1043/2014, 1047/2014, 1051/2014, 1053/2014, 1055/2014, 1061/2014, 1063/2014, 1065/2014, 1067/2014, 1071/2014, 1181/2014, 1414/2014, 2091/2014, 2318/2014, 1699/2015, 2771/2015, 2773/2015, 483/2018, 1168/2018, 1170/2018, 1172/2018, 1174/2018, 1176/2018, 1178/2018, 1180/2018, 1194/2018, 1196/2018, 1198/2018, 1233/2018, 1235/2018 1374/2018, 478/2018, 747/2018, 744/2018, 530/2018, 1369/2018-1373/2018, 75/2019, 314/2019, 774/2019, 778/2019, 781/2019, 493/2019, 754/2020, 145/2020, 417/2020, 617/2020, 803//2022, 546/2021, 803/2021, 670/2021, 40/2021, 218/2023, 816/2023, 862/2023, 863/2023, 864/2023. 306/2023, 308/2023, 310/2023, 312/2023, 314/2023, 316/2023, 318/2023, 320/2023, 322/2023, 324/2023, 326/2023, 328/2023, 330//2023, 332/2023, 334/2023, 336/2023, 338/2023, 340/2023, 384/2023, 386/2023, 388/2023, 390/2023, 413/2023, 423/2023, 424/2023-454/2023 (Hyderabad property applications)
22. These applications relate to the property of the Company (in liqd.) in Hyderabad i.e., NG Hills Layout, PO Kondapur, Serilingampally Mandal, Ranga Reddy Distt., Hyderabad.
23. Issue notice in the applications, wherever notice has not been issued.
24. If the ex-management of the Company (in liqd.) or any other party wishes to file a reply in all these applications, they may do so within six weeks. Rejoinder thereto within four weeks thereafter.
25. List all these applications on 9th February 2024. CO.APPLs. 427/2018, 522/2021, 925/2014, 617/2020, 618/2023, 630/2023, OLR 29/2023
26. These applications relate to the property of the Company (in liqd.) in Gurugram.
27. Issue notice in these applications, where the notice has not been issued.
CO.PET. 265/1998 Page 7 of 8This 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 07/12/2023 at 20:38:28
28. If the ex-management of the Company (in liqd.) or any other party wishes to file a reply in all these applications, they may do so within six weeks. Rejoinder thereto within four weeks thereafter.
29. List all these applications on 22nd February, 2024.
PRATHIBA M. SINGH, J.
NOVEMBER 30, 2023/dk/am/kt CO.PET. 265/1998 Page 8 of 8 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 07/12/2023 at 20:38:28