Delhi High Court - Orders
Manmohan Singh Bhalla vs Assotech Limited on 23 April, 2024
Author: Dharmesh Sharma
Bench: Dharmesh Sharma
$~C-30
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CO.PET. 357/2015 & CO.APPL. 406/2024
MANMOHAN SINGH BHALLA ..... Petitioner
Through:
versus
ASSOTECH LIMITED ..... Respondent
Through: Mr. Amit Tiwari, CGSC with
Mr. Vedansh Anand (GP) for
UOI/SFIO
Mr. Rajesh Kumar Gogna,
CGSC with Ms. Priya Singh
and Mr. Nishant Sharma, Advs.
for ROC
Mr. Sudhir Nandrajog, Sr. Adv.
with Mr. Rishi Awasthi, Mr.
Piyush Vatsa and MR. Avinash,
Mr. Ankit, Advs. for Ex-
Management
CORAM:
HON'BLE MR. JUSTICE DHARMESH SHARMA
ORDER
% 23.04.2024 CO.APPL. 406/2024 (For clarification of order dated 04.04.2014)
1. This application has been moved on behalf of the applicant/Ex- Management seeking certain clarifications and directions against the SFIO in terms of the previous directions of this Court dated 04.04.2024.
2. Mr. Sudhir Nandrajog, learned Senior Counsel has alluded to the order dated 08.11.2016, whereby this Court had made the following observations:
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 24/04/2024 at 23:55:30 "5. Mr. Mayank Goel, learned counsel appearing on behalf of the Official Liquidator would strenuously urge that, in gross violation of the order dated 08.02.2016 passed by this Court, inter alia, large sums of money have been transferred by the Ex-Management to M/s Lindex Impex Private Limited. In addition to cash transactions, Ex-Directors of the company have sold immovable property belonging to the company in liquidation and received the proceeds qua the same in their accounts.
6. Further, it has been brought to the notice of this Court, that despite directions of this Court in this behalf, the Ex-Directors have steadfastly neglected, failed and avoided to furnish the Statement of Affairs and the details of the assets in the Balance Sheets; have furthermore failed to hand over peaceful physical possession of all the flats/properties, vehicles, plant and machinery, and cash-in-
hand belonging to the company in liquidation to the Provisional Liquidator.
12. In view of the foregoing, in my view, so as to prevent the Ex- Management from continuing to flagrantly violate the order passed by this Court on 08.02.2016, and in view of the material that has been placed on record by the Official Liquidator, it would be just, necessary and proper and in the interest of justice to direct the SFIO to conduct an enquiry to investigate the affairs of the company in liquidation, in accordance with law, and in the first instance submit a report in this behalf to this Court, within four weeks from today."
3. It is further pointed out that while the investigation by SFIO was pending, in the interregnum, vide order dated 11.02.2019, certain directions have been passed in furtherance of the revival of the company in question by the ex-management and Mr. N.K. Mody, retired Judge from the Madhya Pradesh High Court, was appointed as a Court Commissioner to supervise the completion of the three pending projects, namely, Celesta Tower, Sector-44, Noida; Windsor Court, Sector-78 and; The Nest, Crossing Republik, Ghaziabad.
4. It is submitted that pursuant to the revival scheme approved by this Court, out of the 1200 residential units, possession has already been offered towards as many as 1000 units to the home buyers. It is submitted that the ex management has infused a substantial sum of 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 24/04/2024 at 23:55:30 money to revive the projects and a request is made that this Court may first have a look into the report submitted by the SFIO and before a decision is taken on merits of the same, the SFIO may not launch any prosecution against the Ex-Management till such time.
5. Learned counsel for the SFIO has objected to any orders enabling the ex-management to have access to the SFIO report.
6. Considering that the completion of the projects is underway at the site at the instance of the ex-management, and although some aspects of the tasks performed by the Court Commissioner also have to be look into, and considering the stakes of the homebuyers, any prosecution of the directors/ex-management might impair the progress and completion of the projects.
7. Hence, it is clarified that this Court vide order dated 04.04.2024 has not granted liberty to the SFIO to launch any prosecution against the Ex.-Management de hor the provisions of the Companies Act, 2013. The SFIO shall refrain from launching any prosecution against the Ex-Management/directors of the company in liquidation till such time this Court considers the report filed by the SFIO and passes appropriate directions thereupon.
8. Re-notify on the date already fixed i.e. 18.07.2024.
DHARMESH SHARMA, J.
APRIL 23, 2024 sp 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 24/04/2024 at 23:55:31