Delhi High Court - Orders
Simplot India Llc & Anr vs Himalaya Food International Limited on 1 November, 2022
Author: Prateek Jalan
Bench: Prateek Jalan
$~15 & 16
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(EFA)(COMM.) 1/2020 & EX.APPLs.(OS) 1211/2020,
1181/2021, 2820/2022, 3224/2022
SIMPLOT INDIA LLC & ANR. ..... Decree Holders
versus
HIMALAYA FOOD
INTERNATIONAL LIMITED ..... Judgement Debtor
+ O.M.P.(EFA)(COMM.) 14/2021 & EX.APPLs.(OS) 137/2022,
3220/2022
HIMALAYA FOOD INTERNATIONAL LTD ..... Decree Holder
versus
SIMPLOT INDIA LLC & ANR. ..... Judgement Debtors
Present:- Mr. Krishnendu Datta, Senior Advocate with Ms. Madhu
Sweta, Ms. Shivangi Khanna & Mr. Rajat Sinha, Advocate
for Simplot India LLC in Item Nos. 15 & 16.
Mr. Dhruv Mehta, Senior Advocate with Mr. Mohit Rohatgi,
Mr. Rajendra Dangwal, Ms. Lisa Mishra & Mr. Kaustub
Narendran, Advocates for Himalaya Food International
Limited.
Mr. Rajeev Mehra, Senior Advocate with Mr. Amrendra
Kumar Singh, Advocate for Consortium of Banks in Item
Nos. 15 & 16.
Signature Not Verified
Digitally Signed
By:SHITU NAGPAL O.M.P.(EFA)(COMM.) 1/2020 & Other Connected Matter Page 1 of 4
Signing Date:04.11.2022
12:22:24
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 01.11.2022 EX.APPL.(OS) 3589/2022 in O.M.P.(EFA)(COMM.) 1/2020
1. By way of the present application, the judgment debtor-Himalaya Food International Limited ["HFIL"] has proposed liquidation of certain immovable assets, and utilization of receivables and cash reserves, towards meeting the dues of the consortium of banks, and the decretal dues payable under the award under enforcement. Mr. Dhruv Mehta, learned Senior Counsel for HFIL, submits on the basis of the summary contained in paragraph 5 of the application, that there are sufficient assets to meet the One Time Settlement ["OTS"] dues of the consortium of lenders as also the decretal dues of the award holder. However, HFIL is anxious that the banks' dues be liquidated before 31.12.2022, when the OTS is due to expire. Mr. Mehta, therefore, seeks permission to sell two of the assets, being the land and building in Keshwana, Rajasthan and leasehold land situated at Paonta Sahib, at this stage. These are mentioned at serial No. 1 and 2 of PART-A of paragraph 5 of the application.
2. According to Mr. Mehta, the proceeds of these sales, alongwith cash reserves and an insurance claim which HFIL expects to receive in respect of a fire in its plant in Gujarat, would be sufficient to cover the banks' OTS dues. HFIL has also referred to freehold land, building and asset at Mauza Shubhkhera and Vadnagar, which it contends would then be utilised towards the decretal dues of the award holder.
3. I am of the view that in these execution proceedings, HFIL has to Signature Not Verified Digitally Signed By:SHITU NAGPAL O.M.P.(EFA)(COMM.) 1/2020 & Other Connected Matter Page 2 of 4 Signing Date:04.11.2022 12:22:24 make an effort to liquidate sufficient assets to meet the award holder's dues after liquidating the banks' OTS dues.
4. Mr. Rajeev Mehra, learned Senior Counsel for the Consortium of Banks and Mr. Krishnendu Datta, learned Senior Counsel for the decree holder, also accept that it would be appropriate for HFIL to be permitted to sell its assets and the sale proceeds which will be utilized towards liquidation of the OTS dues and thereafter towards liquidation of the award holder's dues. Mr. Mehra also cautions that, in the event the banks' dues are not cleared during the validity period of the OTS, the banks would be entitled to a far larger sum.
5. HFIL is directed to file an affidavit to identify the properties mentioned in PART-A and PART-B of paragraph 5 of the application, which it proposes to liquidate at this stage. The affidavit be filed by HFIL within one week, stating the properties to be sold and the estimated timeline in which the sales would be completed. HFIL will be at liberty to start the process of identifying buyers so that it can place reliable estimates of the amounts likely to be realised from the sale of the properties in question before the Court.
6. At this stage, Mr. Mehta states that there is a ready buyer for HFIL's land in Keshwana, Rajasthan, mentioned at serial No. 1 of PART- A of paragraph 5 of the application, for a sum of ₹27 crores. He seeks permission to proceed with the sale of this one property immediately, and undertakes on instructions that the sale proceeds will be deposited with the State Bank of India, Janpath Branch, New Delhi ["SBI"], subject to further orders of the Court. Mr. Datta and Mr. Mehra have no objection to the sale of this land proceeding at this stage, in the aforesaid Signature Not Verified Digitally Signed By:SHITU NAGPAL O.M.P.(EFA)(COMM.) 1/2020 & Other Connected Matter Page 3 of 4 Signing Date:04.11.2022 12:22:24 circumstances and subject to further orders to be passed by this Court. HFIL is permitted to proceed with the aforesaid sale and deposit the entire sale proceeds with the SBI.
7. Mr. Datta may file an affidavit in response to this application within one week.
8. List on 17.11.2022.
O.M.P.(EFA)(COMM.) 1/2020 & O.M.P.(EFA)(COMM.) 14/2021 List on 17.11.2022.
PRATEEK JALAN, J NOVEMBER 1, 2022 'pv'/ Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:SHITU NAGPAL O.M.P.(EFA)(COMM.) 1/2020 & Other Connected Matter Page 4 of 4 Signing Date:04.11.2022 12:22:24