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Bombay High Court

Actis Consumer Grooming Products ... vs Rakesh Malhotra And 9 Ors on 12 August, 2021

Author: A. K. Menon

Bench: A. K. Menon

                IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                     ORDINARY ORIGINAL CIVIL JURISDICTION
                          IN ITS COMMERCIAL DIVISION


         COMMERCIAL ARBITRATION PETITION (L) NO.306 OF 2020


Actis Consumer Grooming Products Ltd.              .. Petitioner
         v/s.
Rakesh Malhotra & Ors.                             .. Respondents



Mr. Ravi Kadam, Sr. Counsel, a/w Ashish Kamat, Rajendra Barot, Ms.
Anusha Jacob, Trisha Sarkar & Mr. Vedant Jalan i/b. AZB & Partners for
the petitioner.

None for the respondents.

Mr. D. N. Kher, Court Receiver-present.


                                       CORAM : A. K. MENON, J.

DATED : 12TH AUGUST, 2021.

P.C. :

1. Called for urgent relief. Production is permitted pursuant to circulation praecipe dated 11 th August, 2021. This application is being heard exparte. The reason for the application to be moved exparte and production being allowed is the apprehension expressed inter alia in the circulation praecipe and paragraph 6.5 of the affidavit of Mr. Ravindranath Santosh Kumar 1/5 p.501.carbpl-306-20.doc wadhwa Hazareesing which Mr. Kadam undertakes to ensure is filed in the registry on or before 25th August, 2021 and the affidavit of one Kenny Abraham dated 10th August, 2021. In the meantime, the scanned copy of that affidavit shows affirmation on 10 th August, 2021 along with original sworn affidavit of Kenny Abraham dated 10th August, 2021 shall be taken on record.

2. Mr. Kadam, learned Senior Counsel, on behalf of the applicant states that by an order dated 5th March, 2020 the Court Receiver was appointed in terms of that order. The Receiver could not execute the order at the material time since the pandemic driven lock-down had disrupted the travel and hence on 18 th March, 2020 this court observed that the Court Receiver had made an application for postponement of the meeting. That application was allowed and the appointment was postponed to 30 th March, 2020. In the meantime, the court granted leave to advance the meeting if the situation improves. It transpires that thereafter on 30th March, 2020 petition was not listed and the order remained pending for execution.

3. It is now pointed out that the applicants have received information from certain persons some whom are said to be 2/5 p.501.carbpl-306-20.doc wadhwa employees/ Ex-employees of respondent no.4 addressed to the Chief Executive Officer of the company indicating that certain working parts are being removed from machines by the Receiver pursuant to earlier order and that these are being replaced with faulty parts. No notice is being given of this application because if altered there is likelihood of further and speedy tampering with the sealed machines. The request today is to direct the Receiver to execute the order. The Court Receiver is present on notice. The Receiver says that the situation as presently advised appears to be conducive to visit the two plants. On account of the delay, Mr. Kadam states that a technical expert be allowed to accompany the Receiver's representatives.

4. Considering the fact that the Receiver has no such technical expert on panel and the applicants today are not in a position to recommend any technical expert who is independent and who will be agreeable to travel under conditions now prevailing only the request for execution of the order dated 5 th March, 2020 can be entertained, I am not inclined to permit any such technical person to accompany the Receiver. However, in addition to the directions already issued, one representative each 3/5 p.501.carbpl-306-20.doc wadhwa of the applicant is permitted to accompany the Receiver to visit at two plants situate at Gagret and Shoghi. Receiver shall depute two persons for simultaneous visits to the plants.

5. This order is passed without notice to the other side also because on 5th March, 2020, Mr. Ankhad had assured the Court that no untoward incident would take place and the statement of Mr. Ankhad was accepted as an undertaking to the court that undertaking continues and will continue to operate, such that the respondent shall not interfere with the visit of the Court Receiver as set out in paragraph 10 of the order dated 5th March, 2020.

6. Needless to mention, Superintendent of Police at the respective locations shall ensure that sufficient security is provided to the Court Receiver's representatives prior to the visit, during the visit and till the Receiver representatives depart.

7. The order dated 5th March, 2020 shall therefore be executed on 18th August, 2021. The Receiver shall visit on 18 th August, 2021. Accordingly, the order shall not be uploaded till 18 th August, 2021. A meeting shall be convened by the Receiver at 11.00 a.m. on 13th instant.

4/5 p.501.carbpl-306-20.doc wadhwa

8. Receiver to act on a copy of this order duly authenticated by the Associate of this court.

(A. K. MENON, J.) Digitally signed by SANDHYA SANDHYA BHAGU BHAGU WADHWA WADHWA Date:

2021.08.18 10:26:43 +0530 5/5 p.501.carbpl-306-20.doc wadhwa