Delhi High Court - Orders
Aditya Birla Finance Limited vs Presidium Educational And Charitable ... on 25 August, 2020
Author: Rekha Palli
Bench: Rekha Palli
Via video conferencing
$~OS-7
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(I) (COMM.) 418/2019
ADITYA BIRLA FINANCE LIMITED ..... Petitioner
Through: Mr.Rajiv Nayar, Sr. Adv. with
Mr.Manmeet Singh, Mr.Ayush
Sharma & Ms.Ria Kohli, Advs.
versus
PRESIDIUM EDUCATIONAL AND CHARITABLE TRUST &
ORS. ..... Respondents
Through: Mr.Jai Mohan, Adv. for R-1 to 12.
Mr.P.S. Singal, Adv. for R-13 to 17.
CORAM:
HON'BLE MS. JUSTICE REKHA PALLI
ORDER
% 25.08.2020 I.A. 7331/2020
1. This is an application filed by the petitioner seeking early hearing of the petition filed by it under Section 9 of the Arbitration and Conciliation Act, 1996 seeking the following reliefs:-
"(a) Pass an order directing Respondents, jointly and/or severally to furnish security for the outstanding dues under the Loan Agreement amounting to Rs.98.26 Crores by way of deposit of monies or by way of a bank guarantee, for securing compliance of their obligations under the Loan Agreements and the respective Deeds of Guarantees;
(b) Pass an order directing Respondents, jointly and/or severally to deposit an amount of Rs.82.75 crores in the escrow accounts being the Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:26.08.2020 12:35:56 shortfall in the amount required to be deposited as per the Escrow Agreements;
(c) Pass an order that pending the furnishing of security prayer (a) above, Respondent No.1 to 19 be restrained from selling, disposing, alienating or in any manner encumbering any of their immoveable or moveable assets, directly or indirectly;
(d) Direct the Respondents to disclose on oath, the list of moveable and immoveable assets owned by them, and disclose the ownership structure of the land and buildings of the schools owned by them;
(e) Direct Respondent Nos. 1 to 4 to provide details to the Petitioner of the number of students admitted in the schools under them, as well as the fee and other charges received by it and other entities in the Presidium Group from such students, for the financial years 2018-19 and 2019-2020;
(f) Direct the Respondents to provide details to the Petitioner of the fees, charges and other consideration received by it and the other Presidium Group entities from the third party schools operating under a franchise from the Presidium Group, for the financial years 2018-19 and 2019-2020;
(g) Direct the appointment of a reputed charted accountants' firm to act as the receiver and undertake the activities/exercise the powers as mentioned at Para 35 hereinabove;
(h) As an alternative to (g) above, direct the Respondents to ensure that (i) all revenues are only deposited in the escrow accounts set up under the escrow agreements; and (ii) utilize such revenues only for bonafide purposes strictly in accordance with the escrow agreement;
(i) restrain the Respondents from terminating the contracts entered into between Presidium Group entities and the Borrower Entities, as well as injunct the Respondents from interfering with the contracts entered into by third party franchise schools with the Borrower Entities;
(j) any money received by any of the Respondents 1 to 14 to be paid to the Petitioner and Respondent No.20 on a pro-rata basis.Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:26.08.2020 12:35:56
(k) Pass an ex-parte ad-interim order in terms of prayers (a) to (j) above; and/ Or
(l) Pass any other or further orders as this Hon'ble Court may deem fit and proper in facts and circumstances of the present case and in the interest of justice."
2. Learned Senior counsel for the petitioner submits that on 26.02.2020, this Court after considering the petitioner's grievance that the respondent nos.1 to 5 were not depositing the entire collections received by them in the escrow account in terms of the agreement between the parties, had appointed an independent Chartered Accountant to oversee the said escrow account. He submits that despite repeated communications from the Chartered Accountant appointed by this Court, the respondents have not even bothered to reply to any of his communications, which fact is evident from a copy of the letters addressed by the said Chartered Accountant to this Court. He, therefore, prays that the main petition be listed on an early actual date and appropriate action be initiated against respondent nos.1 to 5 for their wilful failure to comply with the directions of this Court.
3. Mr.Jai Mohan, Advocate, who appears on behalf of the respondent nos.1 to 12, while submitting that the respondent nos.1 to 5 could not give any response to the Chartered Accountant on account of the pandemic, assures the Court that the said respondents will hand over copies of all the relevant documents in terms of the last order to the Chartered Accountant, within 10 days from today. He further submits that respondent nos.1 to 5 did not deposit the collections received by them in the escrow account only because they had an apprehension that the petitioner will not permit them to Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:26.08.2020 12:35:56 withdraw any amount to make the business expenses of the schools, despite the directions contained in para 9 of order dated 15.11.2019. This aspect will be considered on the next date after the respondents comply with the last order. Mr.Jai Mohan also assures the Court that the costs in terms of the last order will be paid within 10 days.
4. In view of the aforesaid assurance given by Mr. Jai Mohan, learned counsel for respondent nos.1 to 12, while allowing the application for early hearing, no action under the Contempt of Courts Act is being initiated against the respondents at this stage.
5. In view of the above, Mr.B.J. Singh, Chartered Accountant, is requested to carry out the assignments in terms of the last order and file an interim report within a period of two weeks from the date of receiving the relevant documents from the respondent nos.1 to 5.
6. The application is accordingly disposed of and the petition is directed to be listed on 22.09.2020.
O.M.P.(I) (COMM.) 418/2019
7. List the petition on 22.09.2020.
8. The earlier date of 19.10.2020 stands cancelled.
REKHA PALLI, J AUGUST 25, 2020 gm Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:26.08.2020 12:35:56