Gujarat High Court
Rasiklal S Mardia vs Official Liquidator Of Mardia Steel ... on 2 May, 2017
Author: Abhilasha Kumari
Bench: Abhilasha Kumari
O/COMA/212/2015 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
OFFICIAL LIQUDATOR REPORT NO. 22 of 2013
In
COMPANY PETITION NO. 69 of 2001
With
COMPANY APPLICATION NO. 212 of 2015
In
COMPANY PETITION NO. 104 of 2002
With
COMPANY APPLICATION NO. 90 of 2010
In
OFFICIAL LIQUDATOR REPORT NO. 110 of 2007
With
OFFICIAL LIQUDATOR REPORT NO. 78 of 2012
In
COMPANY PETITION NO. 104 of 2002
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RASIKLAL S MARDIA....Applicant(s)
Versus
OFFICIAL LIQUIDATOR OF MARDIA STEEL LIMITED (IN LIQUIDATION) &
1....Respondent(s)
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Appearance:
PARTY-IN-PERSON, ADVOCATE for the Applicant(s) No. 1
MR SHALIN N MEHTA, SENIOR ADVOCATE WITH MR HEMANG M SHAH, ADVOCATE for
the Respondent(s) No. 2
MS AMEE YAJNIK, ADVOCATE for the Respondent(s) No. 1
OFFICIAL LIQUIDATOR for the Respondent(s) No. 1
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CORAM: HONOURABLE SMT. JUSTICE ABHILASHA KUMARI
Date : 02/05/2017
ORAL ORDER
1. Heard the PartyinPerson Mr.Rasiklal S.Mardia, Mr.Shalin N. Mehta, learned Senior Advocate with Page 1 of 6 HC-NIC Page 1 of 6 Created On Sat Aug 12 17:14:12 IST 2017 O/COMA/212/2015 ORDER Mr.Hemang M. Shah, learned advocate for the Assets Reconstruction Company (India) Limited ("ARCIL") and Ms.Amee Yajnik, learned advocate for the Official Liquidator.
2. Mr.Shalin N. Mehta, learned Senior Advocate has submitted that the details of the properties sold by ARCIL, as required to be placed on record pursuant to the order dated 17.04.2017, have so been placed by way of an additional affidavit.
3. On a query being raised by the Court how ARCIL could have sold the properties pending the proceedings, especially in view of the order of the Division bench dated 07.11.2012 and during the pendency of the present proceedings when the rights of ARCIL have not been finally decided, learned Senior Counsel has submitted that there are certain orders of the Court whereby permission has been granted to sell certain properties. However, due to paucity of time, those orders could not be pointed out and the Court is unable to peruse those orders today.
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O/COMA/212/2015 ORDER
4. The submission advanced by the PartyinPerson in this regard is to the effect that the proceeds of the properties that have been sold after the passing of the order by the Division Bench, be directed to deposit in the Registry of the Court and all the said transactions be held to be illegal and null and void.
5. In order to examine this contention, the Court would be required to go into complicated legal issues as ARCIL has also resorted to proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("the SARFAESI Act") . However, ARCIL is required to answer the query of the Court as the properties have been sold during the pendency of the present proceedings and after the order of the Division Bench, when the rights of ARCIL have still not been decided. The submission of the PartyinPerson that the sale proceeds be directed to be deposited in the Registry of this Court, therefore, deserves serious consideration.
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6. Ms.Amee Yajnik, learned advocate for the Official Liquidator has submitted that this Court may declare that ARCIL is not a Secured Creditor.
7. In order to decide the issues raised by learned counsel for the Official Liquidator, the Court would be required to go through the voluminous record apart from hearing detailed submissions of parties, especially as it is stated by the learned Senior Counsel that ARCIL has been treated as a Secured Creditor by the Official Liquidator and the PartyinPerson.
8. The above statement is denied and objected to by the PartyinPerson as well as by learned counsel for the Official Liquidator, who have submitted that this statement is being made only on the basis of the Minutes of a Meeting, which do not confer the status of a Secured Creditor upon ARCIL. The precise issue raised in the present proceedings by the Official Liquidator is that it be declared that ARCIL is not a Secured Creditor.
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O/COMA/212/2015 ORDER
9. The issues involved in the petition are complicated and would require lengthy hearing. The PartyinPerson as well as other parties may thoroughly examine the record in order to prepare the matter for arguments on the basis of the contentions raised and recorded in this order, so that the core issues can be addressed.
10. It is pointed out by Mr.Shalin N. Mehta, learned Senior Counsel that pursuant to the order of the Division Bench, the Official Liquidator has not made any prayer to take back the possession of the properties of the Company in liquidation in the present proceedings.
11. Learned counsel for the Official Liquidator seeks time in order to ascertain whether such a prayer has been made in any other proceedings filed by the Official Liquidator, or not.
12. Learned Senior Counsel for ARCIL would also be required to advance submissions on the aspect whether ARCIL should be asked to deposit the sale proceeds of the properties of the Company that were sold during the pendency of the Page 5 of 6 HC-NIC Page 5 of 6 Created On Sat Aug 12 17:14:12 IST 2017 O/COMA/212/2015 ORDER petition and after the passing of the order of the Division Bench dated 07.11.2012, in the Registry of this Court, as submitted by the PartyinPerson.
13. According to learned Senior Counsel, this contention of the PartyinPerson is answered in the judgment of the Supreme Court in the case of Pegasus Assets Reconstruction P. Ltd. v. M/s.Haryana Concast Limited & Anr. reported in 2016(1) SCALE 1.
14. Due to paucity of time, the matter could not be concluded today, therefore, list on 14.06.2017.
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