Calcutta High Court
The Exide Industries Ltd vs The Howrah Motor Co.Ltd on 1 December, 2009
Author: Sanjib Banerjee
Bench: Sanjib Banerjee
GA No. 2124 of 2009
GA No. 2668 of 2009
GA 2681 of 2009
GA No. 2996 of 2009
GA No. 3243 of 2009
CS No. 392 of 1999
IN THE HIGH COURT AT CALCUTTA
ORIGINAL SIDE
THE EXIDE INDUSTRIES LTD.
VERSUS
THE HOWRAH MOTOR CO.LTD.
BEFORE:
The Hon'ble JUSTICE SANJIB BANERJEE
Date : December 1, 2009. For Howrah Motors :
Mr. Ahin Chowdhury,Sr. Advocate Mr. K.K.Boral,Advocate Mr. D.K.Pal,Advocate For Asha Agarwal :
Mr. Utpal Bose,Advocate Mr. R.L.Mitra,Advocate Mr. Sourya Bhattacharya,Advocate For the applicant in GA No. 2124 of 2009 :
Mr. Soumen Sen,Advocate For the applicant in GA No. 2681 of 2009 :
Mr. Mukul Lahiri,Advocate For the Special Officers :2
Mr. Satarup Banerjee,advocate For Seema Housing Society Pvt. Ltd. :
Mr. Pratik Majumdar,Advocate For the applicant in GA 2668 of 2009 :
Mr. Ashis Chakraborty,Advocate For Sunil Debnath :
Mr. A. Lahiri,Advocate, The Court :- GA 2124 of 2009 is the decree-holder's application. The decree provided that a Siliguri property would be sold for at least Rs. 2.36 crore by the Special Officers named in the decree whereupon the claim would stand satisfied. The Special Officers failed to obtain offers of adequate value, hence the principal application.
The Special Officers found parts of the six-storeyed property at Hill Cart Road in Siliguri to be vacant and/or unoccupied. The Special Officers, pursuant to orders passed earlier this year, took possession of the vacant spaces or flats at the building. GA 2668 of 2009 is an application by a person claiming to be entitled to a portion of the premises which has been taken possession of by the Special Officers. It is submitted that the Special Officers had no authority under the decree to take possession of any portion of the premises. GA 2681 of 2009 is a similar application 3 by another person claiming to be entitled to a flat on the third floor of the building.
Both sets of applicants in GA No. 2668 of 2009 and GA No. 2681 of 2009 insist that they were in possession of the respective areas claimed at the time that the Special Officers took possession thereof. It is also submitted by such applicants that in view of the possession having been taken pursuant to orders of Court, this Court should undo the apparent wrong committed by the Special Officers and allow such applicants to obtain possession of the portions of the building that they were in possession of prior to the Special Officers dispossessing them.
GA 2996 of 2009 is an application by Asha Agarwal for confirmation of the sale of the property in her favour. Asha Agarwal claims to have put in a substantial portion of her original bid of Rs. 1.12 crore. It is this aspiring purchaser's contention that the parties have taken inordinate time over the matter and her investment remains fruitlessly blocked.
Pursuant to leave granted earlier, others seeking to outbid Asha Agarwal have also been invited to bid today. One Seema Housing Society Pvt. Ltd. has appeared and put in an initial bid of Rs. 1.13 crore which was ultimately raised to Rs. 1.15 crore before the bid was not permitted to be continued on behalf of Seema Housing Society Pvt. Ltd. because of irrelevant submission 4 made and conditions sought to be imposed by Counsel despite the Court's request to restrict the submission to only the bid. The highest bid thus far received is from Asha Agarwal for Rs. 1.16 crore. Since no other bid in excess of such amount has been made, Asha Agarwal's bid for Rs. 1.16 crore is accepted and the sale of the Siliguri property is confirmed in favour of Asha Agarwal subject to the purchaser putting in the balance payment within a period of three weeks from date. It is recorded that Asha Agarwal has put in a deposit of Rs. 11 lakh thus far. The balance sum of Rs. 1.05 crore should be put in by December 22,2009 failing which the sale will stand confirmed in favour of Seema Housing Pvt. Ltd. at Rs. 1.15 crore. Seema Housing Pvt. Ltd., again, will be required to put in the balance money, in the event Asha Agarwal fails to put in the amount, within a week of the Special Officers' demand on Seema Housing Pvt. Ltd. for payment of the balance amount.
It is submitted on behalf of Sunil Debnath that an application has been filed which has not yet appeared in the list. Sunil Debnath claims to be in possession of a portion of the building and wants to put in a bid for such portion of the building of which he claims to be in possession. Since the sale was required to be made of the entirety of the building, the prayer made for purchase of a portion of the building is not 5 acceded to. In such view of the matter, GA 3143 of 2009 is treated as on the day's list and disposed of without any order.
The rights of the applicants in GA No. 2668 of 2009 and GA 2681 of 2009 may, indeed, have been prejudiced by the Special Officers acting in pursuance of orders passed by this Court, if such persons had been in possession of the respective portions of the property prior to the Special Officers taking over possession thereof. However, the scope of the present proceedings cannot be enlarged to accommodate an adjudication of such applicants' title and right to immediate possession and the applicants in GA 2668 of 2009 and GA 2681 of 2009 are left free to pursue their remedies, if not already done, before the appropriate civil forum. In the event the applicants file, or either of them has filed, proceedings before the appropriate civil forum, there will be no impediment in such forum making an order on the Special Officers in respect of the possession of the relevant portions of the building only by virtue of the Special Officers having been appointed by this Court and on account of the Special Officers having been authorised by this Court to take over possession of the relevant portions.
For such purpose, the Special Officers will be deemed to be Special Officers in the appropriate proceedings that may be instituted by the applicants in GA No. 2668 of 2009 and GA No. 2681 of 2009(if not already instituted) and appropriate orders and 6 directions may be made on the Special Officers by the regular civil forum. In view of such order, no leave will be necessary for the applicants in GA No. 2668 of 2009 and GA No. 2681 of 2009 to sue the Special Officers or be entitled to claim orders against the Special Officers.
The Special Officers have filed a report after taking possession of the portions of the Siliguri property pursuant to the order dated September 11,2009. Copies of such report should be made over to Advocates representing the applicants in GA No. 2668 of 2009 and GA No. 2681 of 2009 by December 3,2009. Upon receipt of the entire consideration in respect of the building, whether from Asha Agarwal or from Seema Housing Pvt. Ltd., the decree shall stand satisfied and the decree holder will be entitled to appropriate the sale proceeds in full satisfaction of the decree.
Upon the successful purchaser putting in the entire consideration, the Special Officers will execute the conveyance in favour of such successful purchaser. It is also made clear that the purchase has been made and bids have been put in therefor on the understanding that the sale is on as is where is and whatever is basis.
Any deposit received from either bidder will be refunded upon full consideration being received from the other bidder. 7
GA No. 2124 of 2009, GA 2668 of 2009, GA 2681 of 2009, GA 2996 of 2009 and GA 3143 of 2009 are disposed of without any order as to costs.
Urgent certified photostat copies of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.
(SANJIB BANERJEE, J.) Sandip Chandra Assistant Registrar(CR)