Delhi High Court - Orders
Axis Trustee Services Limtied & Ors vs Sanjeev Mahajan & Ors on 3 February, 2022
Author: Amit Bansal
Bench: Amit Bansal
$~2
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 28/2022
AXIS TRUSTEE SERVICES LIMTIED & ORS. ..... Plaintiffs
Through: Mr. Sandeep Sethi, Senior Advocate
with Mr. Prateek Kumar, Ms.
Vaishnavi Chillakuru, Mr. Madhav
Khosla & Ms. Apeksha Dhanvijay,
Advocates for P-1.
Mr. T.K. Ganju, Senior Advocate
with Mr. Prateek Kumar, Ms.
Vaishnavi Chillakuru, Mr. Madhav
Khosla & Ms. Apeksha Dhanvijay,
Advocates for P-2 & 3.
versus
SANJEEV MAHAJAN & ORS. ..... Defendants
Through: Mr. Ramesh Singh, Senior Advocate
with Mr. Kumar Anurag Singh, Mr.
Akshay Ringe & Mr. Zain. A. Khan
Advocates.
CORAM:
HON'BLE MR. JUSTICE AMIT BANSAL
ORDER
% 03.02.2022
[VIA VIDEO CONFERENCING]
IA No.689/2022(u/O.XXXIX R.1&2 CPC) & IA No.690/2022(u/O.II R.2(3) CPC)
1. A detailed order was passed in this matter on 14th January, 2022 by this Court. After noting the submissions of the parties, the following directions were passed:-
"16. So far as, the contention of the plaintiffs to deposit the rental with this Court, the learned senior counsel for the defendant submits let him file an affidavit to the extent as to how Signature Not Verified Signed By:SAKSHI CS(COMM) 28/2022 Page 1 of 6 RAMOLA Signing Date:02.04.2022 20:56:42 much the defendants have received under the lease agreement deed dated 04.02.2021 and how the said rental has been dealt with. Let the said affidavit be filed within a week from today.
17. List on 03.02.2022 and in the meanwhile the status quo qua the title of the property be maintained by the parties and the defendants are directed not to deal with the properties or create any third party right in the properties without prior written consent of the plaintiffs.
18. Since it is submitted the parties are inclined to settle the matter amicably and also with consent of plaintiffs intends to dispose of the properties to pay all their debt, it would be appropriate, both the parties appear before the Organizing Secretary, Delhi High Court Mediation and Conciliation Centre on 18.01.2022 at 2:00 PM. A senior mediator be appointed by the mediation centre."
2. Pursuant to the aforesaid directions, the parties appeared before the Mediator. However, as per the report received from the Mediator, the mediation proceedings have not been successful.
3. In terms of the aforesaid order, an affidavit has been filed on behalf of the defendants. In paragraph 12 of the said affidavit, the defendants have given details of Rs.5,00,00,000/- that have been spent by the defendants to carry out extensive works in the Punjabi Bagh property so as to make it ready to be leased out. The same is set out below:
"12. It would be germane to inform this Hon'ble Court that the defendants have carried out extensive work on the Punjabi Bagh Property and the same is to the tune of 5,00,00,000/-. Details of the expenses is being provided here under:
PUNJABI BAGH EXPENSES Sr.No. PARTICULARS Amount (in Rs.) Signature Not Verified Signed By:SAKSHI CS(COMM) 28/2022 Page 2 of 6 RAMOLA Signing Date:02.04.2022 20:56:42 1 Stamp Duty paid for Execution of Lease Deed 825200.00 Dt. 04.02.2021 2 Registrar Office Expenses 200000.00 3 Conversion Charges paid to MCD on 7630620.00 15.02.2021
4 Property Tax paid on 26.02.2021 under 975800.00 amnesty scheme 5 Dismantling expenses including transportation of 2000000.00 existing Interior and Handed over the possession to Kids Clinic on 19.02.2021 6 Fire Fighting Equipment's/Accessories 3752128.00 7 Lift Installation Expenses 1657900.00 8 Civil Work of Stretcher Lift from Basement to 625000.00 4th Floor 9 Civil work of Bio-Medical Waste room 230000.00 10 Civil Work of Including 10KL overhead tank & 930000.00 50KL underground tank 11 Rain Water Harvesting Pit 550000.00 12 STP Repairing 240000.00 13 Existing Lift Maintenance 237000.00 14 Civil work of Security Guard Room size 350000.00 1800mm x 1500mm 15 400KVA HT Electricity Connection including 12500000.00 lying of cables 16 Commission 7906000.00 17 Miscellaneous Expenses of lesioning with 10000000.00 various Govt. Departments viz. fire NOC, BSES, HT Connection, Pollution Control Board and MCD.
Total 50609648.00
4. In paragraph 18 of the said affidavit, it has also been mentioned that the defendants received a sum of Rs.2,34,50,000/- from the lessee towards the refundable security deposit, which money has been spent by the defendants towards the expenses in the manner detailed above. The lease rental was fixed at Rs. 33,50,000/- per month, however, till date the defendants have not received any rent and are in the process of taking steps to recover rent from the lessee.
5. The defendants have also placed on record a settlement proposal dated Signature Not Verified Signed By:SAKSHI CS(COMM) 28/2022 Page 3 of 6 RAMOLA Signing Date:02.04.2022 20:56:42 31st January, 2022 in terms of which Rs.10,00,00,000/- is sought to be re- paid upfront from the Escrow Account in favour of the plaintiffs and the balance amount of Rs.355 crores, towards the principal amount loaned within a period of eight months by sale of various properties, details of which are set out below:
"Assets Details Release on minimum
Payments
108 Udyog Vihar - Phase I, Gurgaon. INR 100 Crores
183 Udyog Vihar - Phase I, Gurgaon INR 125 Crores
Punjabi Bagh Property INR 40 Crores
2.5 Acres Farm House at W'estend INR 50 Crores
Greens
3.5 Acres Farm House at Westend INR 50 Crores
Greens
Total INR 365 Crores
6. The said offer has been rejected by the plaintiffs as it only seeks to refund the principal amount, whereas as per the plaintiff, the total amount due is Rs. 549, 43, 96, 852/-
7. In this regard, it may be relevant to refer to the following paragraph from the said proposal:-
"The above table explains the dismal state of affairs due to the prevailing market conditions for the past 2 years. The estimated loss of the business per annum has been close to INR 27 Crores. The present annual revenues from the Co working business is close to INR 18 Crores and hence in case the business would not have got affected due to Covid and Lockdowns the aggregate revenues would have been in the range of INR 45-50 Crores and hence the company would have been in the position to service the coupon obligations to the Investors. Moreover, property situated in this vicinity are largely affected due to close down of boarder of Delhi & Haryana for a period of more than 6 months."Signature Not Verified Signed By:SAKSHI CS(COMM) 28/2022 Page 4 of 6 RAMOLA Signing Date:02.04.2022 20:56:42
8. It is clearly admitted therein that present annual revenues of the defendants from the co-working business is close to Rs. 18 crores. It is further stated that this business would have been in the range of Rs. 45 to 50 crores had the business not been affected due to COVID and lockdowns.
9. Mr. Ramesh Singh, senior counsel appearing on behalf of the defendants disputes the above position and states that the annual revenues of the defendants from co-working business is nowhere close to 18 crores.
10. I am afraid this submission is directly in the teeth of what is stated in the proposal.
11. It is not disputed by the defendants that a sum of Rs. 365 crores is liable to be paid to the plaintiffs towards the principal loan amount. It has also been admitted in paragraph 15 of the affidavit filed by the defendants that the Punjabi Bagh property has been mortgaged with the plaintiffs as a security of the aforesaid loan. Therefore, the interest of the plaintiffs has to be secured at this stage.
12. Without going into the aspect whether the security deposit received by the defendants from the tenant was spent in a bona fide manner by the defendants for betterment of the property, in view of fact that defendants have admitted receiving annual revenues of Rs. 18 crores from the co- working business, defendants are directed to deposit a sum of Rs.2,34,50,000/- being the amount of security deposit received by the defendant from the Lessee of the Punjabi Bagh property, with this Court within two weeks from today.
13. It is stated by the defendants that they are yet to receive any lease rentals in respect of the Punjabi Bagh property even though the lease rentals were due from 1st August, 2021. It surprises the Court as to why no action Signature Not Verified Signed By:SAKSHI CS(COMM) 28/2022 Page 5 of 6 RAMOLA Signing Date:02.04.2022 20:56:42 has been taken till now by the defendants towards recovery of the rent. Be that as it may, it is directed that all the lease rentals that may be received in respect of Punjabi Bagh property shall also be deposited by the defendants in the Escrow Account.
14. Defendants are also directed to file their up to date bank statements in respect of all their bank accounts commencing from 1st April, 2019 within three weeks from today.
15. Reply to the applications may be filed within four weeks. Rejoinder thereto, if any, be filed before the next date of hearing.
16. List on 7th April, 2022.
IA No.1901/2022(for direction of re-referring suit for further mediation)
17. This application has been filed on behalf of the defendants seeking directions for re-referring the parties for fresh mediation.
18. In response thereto, the senior counsels appearing on behalf of the plaintiffs submits that they do not have faith in defendants, and nothing would come out from the mediation proceedings. Accordingly, at this stage, no purpose would be served from re-referring the parties to mediation.
19. In view of the strong opposition by the plaintiff, the need is not felt to re-refer the matter to mediation at this stage. Application stands disposed of.
AMIT BANSAL, J FEBRUARY 3, 2022 ak Signature Not Verified Signed By:SAKSHI CS(COMM) 28/2022 Page 6 of 6 RAMOLA Signing Date:02.04.2022 20:56:42