Religare Finvest Limited vs Balaji Great Lotus Glory And Ors on 23 December, 2022

[Cites 2, Cited by 1]

Delhi High Court - Orders

Religare Finvest Limited vs Balaji Great Lotus Glory And Ors on 23 December, 2022

Bench: Chandra Dhari Singh

                 $~19
                 *        IN THE HIGH COURT OF DELHI AT NEW DELHI
                 +        CS(COMM) 924/2022
                          RELIGARE FINVEST LIMITED                                 ..... Plaintiff
                                             Through:       Mr. Rajiv Nayar, Sr. Advocate
                                                            alongwith Mr. Ashish Dholakia, Sr.
                                                            Advocate with Mr. Sandeep Das, Mr.
                                                            Siddharth Sharma, Mr. Arpit K.
                                                            Singh and Ms. Kritika Mundra,
                                                            Advocates

                                             versus

                          BALAJI GREAT LOTUS GLORY AND ORS.                     ..... Defendants
                                        Through: None

                          CORAM:
                          HON'BLE MR. JUSTICE CHANDRA DHARI SINGH
                                       ORDER

% 23.12.2022 I.A. 22455/2022 (Exemption) Exemption allowed subject to just exceptions. The application stands disposed of.

I.A. 22456/2022 (Exemption) Subject to the plaintiff filing the clear, original and legible/typed copies of any dim documents on which the plaintiff may seek to place reliance, within four weeks from today, exemption is granted for the present.

The application is disposed of.

Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:23.12.2022 19:54:00

I.A. 22457/2022 (Exemption) Exemption allowed subject to just exceptions. The application stands disposed of.

I.A. 22454/2022 (Exemption from filing Court fee) Subject to the plaintiff filing requisite Court fee within four weeks, exemption is granted for the present.

The application is disposed of.

I.A. 22458/2022 (u/O II Rule 2)

1. By way of this application under Order II Rule 2 of the Code of Civil Procedure, 1908, the plaintiff seeks the following relief:-

" A. Pass an order granting leave to the Plaintiff to raise further claims and reliefs in view of Order II Rule 2 of the Civil Procedure Code, 1908..."

2. Issue notice to the defendants through all permissible modes, returnable on 17th February, 2023.

CS(COMM) 924/2022

1. The instant suit for declaration and perpetual injunction has been filed on behalf of the plaintiff seeking the following reliefs:-

" A. Pass a decree of declaration that any purported assignment of the rights and/or obligation under the Settlement Agreement dated 1 July 2017 ("Settlement Agreement") as claimed by Defendant No. 1, whether by way of the purported Master Settlement Agreement which includes its schedules containing the (i) Assignment Agreement; (ii) Collection and Servicing Agency Agreement; and (iii) unattested Memorandum of Hypothecation, all dated 26 September 2020 ("Master Settlement Agreement"), or otherwise, is non-est, void and of no effect whatsoever;

Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:23.12.2022 19:54:00

B. Pass a decree of perpetual injunction restraining the Defendants, from acting upon any such purported assignment of rights and / or obligations under the Settlement Agreement;

C. Pass a decree of perpetual injunction restraining the Defendant Nos. 2 to 7 from assigning their rights and/or obligation under the Settlement Agreement to any third party (Ashok Kumar);

D. Pass a decree of perpetual injunction restraining the Defendant No. 1 from holding out as an assignee of the rights and/or obligation under the Settlement Agreement;

E. Pass a decree of perpetual injunction restraining the Defendant No. 1 from purporting to assign rights and/or obligations under the Settlement Agreement to any third party (Ashok Kumar);

F. Pass a decree of declaration that any action or steps taken by Defendant No. 1 or any Ashok Kumar in furtherance of assignment of the Settlement Agreement, whether by way of the purported Master Settlement Agreement dated 26 September 2020 or otherwise, is non-est, void and of no effect whatsoever G. Costs of the filing and prosecuting the present proceedings..."

2. Mr. Rajiv Nayar, learned senior counsel appearing on behalf of plaintiff submitted that the Plaintiff- Religare Finvcst Limited ("RFL") is a wholly owned subsidiary of Religare Enterprises Limited ("REL"). RFL is a Non-Banking Financial Company registered with the Reserve Bank of India ("RBI"). It is submitted that the Defendant No. 1 is Balaji Great Lotus Glory ("BGLG"), purportedly an unregistered charitable trust/ society/association of persons located in Dehradun, Uttarakhand. The Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:23.12.2022 19:54:00 Defendant No. 2, Strategic Credit Capital Private Limited ("SCCPL") is a company registered under the Companies Act, 1956. The Defendant No. 3 is Perpetual Capital and Servicing Private Limited ("PCSPL"), a wholly owned subsidiary of SCCPL. The Defendant No.4, Eleos Finvestia Acquisition Trust ("Elcos Trust"), is purportedly a trust settled under the Indian Trust Act. The Defendant No.5 is Participation Finance & Holding (India) Private Limited, a company registered under the Companies Act, 1956 ("PFHPL"). The Defendant No. 6, Emppcl Fortitus Private Limited ("EFPL") is a company registered under the Companies Act, 1956. The Defendant No. 7, Mr. Mohnish Mukkar is a signatory to the Settlement Agreement. The Defendant No. 8 is Ashok Kumar or John Doc an unknown person.

3. Learned senior counsel appearing on behalf of plaintiff submitted that all the Defendants arc acting in collusion with each other, and they arc entities that arc a part of a single economic entity having common directors and common addresses; and arc working under the directions of the same principal i.e., Mr. Mohnish Mukkar. It is further submitted that the Defendants no. 2 to 7 have entered into the Settlement Agreement.

4. It is submitted that assignment of rights are being illegally done under guise of this settlement agreement.

4. Heard.

5. Let the plaint be registered as a suit.

6. Issue summons in the suit.

7. The written statement(s) shall be filed within thirty days from the receipt of summons. Along with the written statement(s), the defendants shall also file affidavit of admission/denial of the documents of the plaintiff.

Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:23.12.2022 19:54:00

8. Liberty is given to the plaintiff to file replication(s), if any, within thirty days from the receipt of the written statement(s). Along with the replication(s) filed by the plaintiff, affidavit of admission/denial of the documents of the defendants be filed by the plaintiff.

9. List on 17th February, 2023.

I.A. 22453/2022 (O-XXXIX R-1 & 2 of CPC)

1. The instant application under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 has been filed on behalf of the plaintiff seeking the following reliefs:-

" A. Pass ad-interim ex-parte injunction restraining the Defendant No. 1 from holding out as an assignee or the rights and/or obligations under the Settlement Agreement;

B. Pass ad-interim ex-parte injunction restraining the Defendants from acting upon any such purported assignment of the Settlement Agreement whether by way of the purported Master Settlement Agreement which includes its schedules containing the (i) Assignment Agreement; (ii) Collection and Servicing Agency Agreement; and (iii) unattested Memorandum of Hypothecation, all dated 26 September 2020 or otherwise;

C. Pass ad-interim ex-parte injunction restraining the Defendant Nos. 2 to 7 from assigning their rights and/or obligation under the Settlement Agreement to any third party (Ashok Kumar);

D. Pass ad-interim ex-parte injunction restraining the Defendant No. 1 from purporting to assign rights and/or obligations under the Settlement Agreement to any third party (Ashok Kumar)..."

Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:23.12.2022 19:54:00

2. Learned senior counsel appearing on behalf of plaintiff submitted that Clause 10.1 of the Settlement Agreement expressly prohibits any assignment of rights and or obligation by the Defendants No. 2 to 6 to any third party. Despite the same, the Defendants claim to have assigned the rights and obligation under the Settlement Agreement to the Defendant No. 1 under the purported Master Settlement Agreement. It is submitted that it is evident that the Defendants have breached the Settlement Agreement by assigning the rights and or obligations under the Settlement Agreement to the Defendant No. l. It is further submitted that the Defendant No. 1 claiming to be an assignee under the Settlement Agreement is illegally acting upon the said assignment.

3. Heard. Issue notice.

4. Notice be issued to the defendants through all modes.

5. Reply(ies) be filed within four weeks.

6. Rejoinder(s) thereto, if any, be filed within two weeks thereafter.

7. A prima facie case is made out on behalf of the plaintiff for an ad- interim ex-parte injunction. Consequently, till the next date of hearing, status quo shall be maintained. The Defendants are hereby restrained from, in terms of prayer A to D to the captioned application.

8. Compliance of Order XXXIX Rule 3 of the Code of Civil Procedure, 1908 (CPC) be done within five days.

9. List before the Court on 17th February, 2023.

10. Dasti.

CHANDRA DHARI SINGH, J DECEMBER 23, 2022 Dy/mg Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:23.12.2022 19:54:00

Unlock Advanced Research with PRISMAI

Delhi High Court - Orders