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Delhi High Court - Orders

Dinesh Mittal & Ors vs M/S Triveni Infrastructure ... on 21 December, 2023

Author: Prathiba M. Singh

Bench: Prathiba M. Singh

                                    $~C3 & C4
                                    *           IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +           CO.PET. 39/2009, CO.APPLs. 543/2013, 1585/2013, 1366/2017,
                                                75/2018, 441/2018, 689/2018, 830/2018, 545/2020, 655/2020,
                                                5/2021, 444/2022, 733/2022, 734/2022, 21/2023, 36/2023, 50/2023,
                                                513/2023, 634/2023, 713/2023, 754/2023, 755/2023, 756/2023,
                                                766/2023, 776/2023, 968/2023, 969/2023, 970/2023, 971/2023,
                                                OLR 114/2018 & OLR 98/2023

                                                DINESH MITTAL & ORS.                                                           ..... Petitioners
                                                                                      Through:                Mr. Abhimanyu Bhandari, Ms.
                                                                                                              Nattasha Garg, Mr. Thakur Ankit
                                                                                                              Singh, Mr. Abhay K. Das, Advs (M.
                                                                                                              9654998650)
                                                                                                              Mr. Jay Savla Sr. Adv, Mr. Prabhat
                                                                                                              Chaurasia, Mr. Rajpal Singh for
                                                                                                              Applicant/Sicom      Ltd       (M.
                                                                                                              9873849435)
                                                                                      versus

                                                M/S TRIVENI INFRASTRUCTURE
                                                DEVELOPMENT CO. LTD                                                            ..... Respondent
                                                                                      Through:                Mr. Anil Kumar Yadav, AAG with
                                                                                                              Ms. Noopur Singhal, Adv. with Mr.
                                                                                                              Lalit Bazad DTP HQ., Mr. Suraj
                                                                                                              Katiyal Planning Assistant, DTCP
                                                                                                              and Mr. Rajbeer Singh, Chief
                                                                                                              Accounts Officer, DTCP (M.
                                                                                                              9312765888)
                                                                                                              Mr. Akhil Sibal, Sr. Adv. with Ms.
                                                                                                              Priyadarshini Dewan, Mr. Deepak
                                                                                                              Agarwal      and     Ms.    Aarohi
                                                                                                              Mikkilineni, Advocates along with


                                    CO.PET. 39/2009 & CO.PET. 333/2010                                                                             Page 1 of 9


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 23/12/2023 at 02:36:22
                                                                                                               Mr. Madhur Mittal and Mr. Sumit
                                                                                                              Mittal (Ex - Directors of the
                                                                                                              Respondent        Company      under
                                                                                                              Liquidation) in person.
                                                                                                              Mr. Abhimanyu Bhandari, Ms.
                                                                                                              Nattasha Garg, Mr. Alok Raghav,
                                                                                                              Mr. Thakur Ankit Singh and Mr.
                                                                                                              Srikant Singh, Advocates for
                                                                                                              Applicant       in      CA/659/2021,
                                                                                                              655/2020,         444/2022       (M:
                                                                                                              9026272055).
                                                                                                              Ms. Ruchi Sindhwani, Sr. Standing
                                                                                                              Counsel with Ms Megha Bharara,
                                                                                                              Adv. with Mr. Vineet Rai & Dy
                                                                                                              Official Liquidator, Mr Kataria (M:
                                                                                                              9811533510/9871145546).
                                                                                                              Mr. Ramesh Babu, Ms. Manisha
                                                                                                              Singh & Ms. Tanya Chowdhary
                                                                                                              Advocates for RBI.
                                    C2                                                WITH
                                    +           CO.PET. 333/2010, CO.APPLs. 2375/2011, 905/2016, 4542/2016,
                                                4587/2016, 1113/2017, 315/2018 & OLR 255/2017

                                                SH. SAMEER SHARMA                                                               ..... Petitioner
                                                                                      Through:                Mr. Abhimanyu Bhandari, Ms.
                                                                                                              Nattasha Garg, Mr. Thakur Ankit
                                                                                                              Singh, Mr. Abhay K. Das, Advs (M.
                                                                                                              9654998650)
                                                                                      versus

                                                M/S TRIVENI INFRASTRUCTURE
                                                DEVELOPMENT CO LTD                      ..... Respondent
                                                               Through: Mr. Anil Kumar Yadav, AAG with
                                                                        Ms. Noopur Singhal, Adv. with Mr.


                                    CO.PET. 39/2009 & CO.PET. 333/2010                                                                             Page 2 of 9


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 23/12/2023 at 02:36:22
                                                                                                               Lalit Bazad DTP HQ., Mr. Suraj
                                                                                                              Katiyal Planning Assistant, DTCP
                                                                                                              and Mr. Rajbeer Singh, Chief
                                                                                                              Accounts Officer, DTCP (M.
                                                                                                              9312765888)
                                                                                                              Mr. Akhil Sibal, Sr. Adv. with Ms.
                                                                                                              Priyadarshini Dewan, Mr. Deepak
                                                                                                              Agarwal      and      Ms.     Aarohi
                                                                                                              Mikkilineni, Advocates along with
                                                                                                              Mr. Madhur Mittal and Mr. Sumit
                                                                                                              Mittal (Ex - Directors of the
                                                                                                              Respondent        Company      under
                                                                                                              Liquidation) in person.
                                                                                                              Mr. Abhimanyu Bhandari, Ms.
                                                                                                              Nattasha Garg, Mr. Alok Raghav,
                                                                                                              Mr. Thakur Ankit Singh and Mr.
                                                                                                              Srikant Singh, Advocates for
                                                                                                              Applicant       in      CA/659/2021,
                                                                                                              655/2020,         444/2022       (M:
                                                                                                              9026272055).
                                                                                                              Ms. Ruchi Sindhwani, Sr. Standing
                                                                                                              Counsel with Ms Megha Bharara,
                                                                                                              Mr. Vineet Rai, Advocates with Dy
                                                                                                              Official Liquidator, Mr Kataria (M:
                                                                                                              9811533510/9871145546).
                                                                                                              Mr. Ramesh Babu, Ms. Manisha
                                                                                                              Singh & Ms. Tanya Chowdhary
                                                                                                              Advocates for RBI.
                                                CORAM:
                                                JUSTICE PRATHIBA M. SINGH
                                                            ORDER

% 21.12.2023

1. This hearing has been done through hybrid mode.

CO.PET. 39/2009 & CO.PET. 333/2010 Page 3 of 9

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 23/12/2023 at 02:36:23

2. In the previous order dated 11th December, 2023, the Court had considered in detailed submissions relating to the valuation of the land belonging to the company (in liqd.) i.e. Triveni Infrastructure Development Co. Ltd (TIDCO) at Sector 78, Faridabad, Haryana. Vide the said order, the Court after considering the various reports which were submitted by the Official Liquidator (OL), had directed as under:

"51. After going through the aforementioned valuation reports and in view of the fact that one of the main impediments i.e. decree in favour of late Shri Chander Bhan now stands resolved, this Court is of the opinion that the valuation of land is to be now accepted and the sale of the land of Triveni Galaxy Project at Sector 78, Faridabad is to be proceeded with.
52. At this stage, it has been pointed out by Director Town & Country Planning, Haryana (DTCP) that the DTCP license in relation to this land has expired in 2009 and the same would have to be renewed. Mr. Suraj Katiyal Planning Assistant and Mr. Lalit Bazad, DTP (HQ) are present in Court. They submit that the license can be renewed provided the dues of DTCP are paid.
53. Mr. Madhur Mittal, Ex - Director of TIDCO who is present in Court, points out that there is a scheme launched by the DTCP called Samadhan Se Vikas Scheme Haryana, 2022 as per which, subject to payment of the EDC and IDC charges, the issue of the DTCP license could be resolved at a lesser amount.
54. Ms. Ruchi Sindhwani, ld. Counsel for the OL points out that a letter dated 27th September, 2023 has been written to the DTCP, Haryana for consideration under the said scheme.
CO.PET. 39/2009 & CO.PET. 333/2010 Page 4 of 9
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 23/12/2023 at 02:36:23
55. The Court is of the opinion that the correct approach at this stage would be to proceed by the value of the land per acre, inasmuch as a large amount of the land is still not yet constructed and most of the towers are partly constructed. The Court is, therefore, inclined to accept the valuation provided by Mis Nagpal & Associates vide the valuation report dated 7th November, 2023. Going by the conservative estimate as per the said report, this Court is of the opinion that the first attempt to sell off this land of Triveni Galaxy Project at Sector 78, Faridabad ought to be with a reserve price of Rs.5 50 crores."

3. After considering the valuation reports, and after taking into consideration the delineation of the land in possession of M/s. Pal Infrastructure and Developers Pvt. Ltd. and M/s. Zion Promoters and Developers Pvt. Ltd. the reserve price of the said land has been fixed at Rs.550 Crore.

4. The main issue remaining qua the said land is in respect of the Director Town & Country Planning, Haryana (DTCP) license which is to be renewed, prior to the sale notice being issued as the same would have an impact on the amount that would be realisable.

5. An affidavit has been filed by DTCP in respect of the dues payable to it for renewal of the license. The license No. 37-39/2007 for the land at Sector 78, Faridabad is in the name of TIDCO. There are two components of the amount which is due to the DTCP. The same are:

                                                i)           the DTCP Licence renewal fee;
                                                ii)          The External Development Charges (EDC) and Infrastructure
                                                             Development Charges (IDC).


                                    CO.PET. 39/2009 & CO.PET. 333/2010                                                     Page 5 of 9


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 23/12/2023 at 02:36:23

6. Insofar as the IDC charges are concerned, counsel for DTCP submits that there are no outstanding amounts to be paid. Computation of the remaining amounts due to the DTCP were placed before the Court yesterday by way of an affidavit dated 18th December, 2023. At that stage, it was pointed out by Ms. Sindhwani, ld. Standing Counsel for the OL that the interest would not be liable to be charged in the manner that the DTCP is seeking to do in view of Rule 156 and Rule 179 of the Company (Court) Rules, 1959. The Court had, then, adjourned the matter for today to enable the OL's office and the DTCP to decide on the amount that would be due to the DTCP.

7. Today, ld. Counsel appearing for the DTCP on instructions from DTCP officials who are present in Court is reluctant to agree that interest would be liable to be paid only at 4%, if surplus is left, after liquidation. According to ld. Counsel, interest would be liable to be paid in the manner as prescribed under the DTCP policy.

8. Ld. Counsel for the DTCP has, however, fairly, handed over a calculation based on interest being charged at 4%. In terms thereof, the license renewal fee that would be liable to be paid is Rs.5,59,27,151/- and the EDC and enhanced EDC would be to the tune of Rs.4828.63 lacs i.e., approx. Rs. 48 crores. The breakup of the same is set out below:

Licence Head Principal Amount Interest Total In Remarks No. lacs 37-39 of EDC 2327.75 1401.16 3728.91 2007 4% interest 2327.75X4X4311/365X 1099.72 1099.72 from 100 =1099.72 CO.PET. 39/2009 & CO.PET. 333/2010 Page 6 of 9 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 23/12/2023 at 02:36:23 1.03.2012 to 20.12.2023 (4311 days) Total dues 2327.75 2500.88 4828.63 as on 20.12.2023

9. At this stage, the Court is confronted with the situation where the fund position with the OL for TIDCO is as under:

                                                i)           13.40 crore
                                                ii)          37.50 earmarked for the claimant being SICOM

10. In addition, Mr. Akhil Sibal, ld. Sr. Counsel for TIDCO also submits that there are three land acquisition awards in favour of TIDCO which are to be collected from Land Acquisition Collector. The said awards are approximately to the tune of approximately Rs. 76.63 Crores. Thus, while the entire amount may not be payable today, the fund position could improve and all the charges of the DTCP could then be paid.

11. The Court is of the opinion that the DTCP license is a crucial component, which would attract better bids for the land at sector 78, Faridabad. Considering this position and the fact that there should not be any further delay in enabling the sale notice being published by the OL for exploring the possibility of a new developer taking over the said land, the following interim arrangement is put in place:

i) A sum of Rs.5,59,27,151/- shall be paid by the OL towards renewal of license No. 37-39/2007 and the same shall be renewed CO.PET. 39/2009 & CO.PET. 333/2010 Page 7 of 9 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 23/12/2023 at 02:36:23 till 22nd January, 2025. Upon the said deposit being made, the renewal shall be communicated to the OL within two weeks. The renewal of the license shall also be reported to the Court.

ii) The said renewal amount shall be deposited with DTCP by 10th January, 2024 and the DTCP license renewal shall be completed by 25th January, 2024.

iii) Insofar as EDC, enhanced EDC and the renewal of bank guarantees are concerned, the same would be one of the conditions that would be put in the draft sale notice which is to be published by the OL for the purpose of sale of the development rights in the Triveni Galaxy Project at Sector 78, Faridabad. The sale notice shall also clarify that the obligations relating to renewal of bank guarantees and other formalities would have to be complied with by the new developer.

12. Insofar as EWS plots on the said land are concerned, as on date, the status is that the allotment of EWS plots and construction of community services has not commenced. The obligation to construct the same shall also be that of the new developer.

13. Subject to the payment of the DTCP license renewal fee, the license shall be renewed. For the time being, compliance of remaining conditions shall not be insisted upon by the DTCP as TIDCO is in liquidation.

14. Upon the renewal of the DTCP license, the OL's office shall put up a draft sale notice for the approval of sale of the land at sector 78, Faridabad.

CO.PET. 39/2009 & CO.PET. 333/2010 Page 8 of 9

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 23/12/2023 at 02:36:23

15. Insofar as any outstanding amounts to be collected from Land Acquisition Collector in respect of the three land acquisition awards in favour of TIDCO are concerned, the OL office shall contact the office of the concerned Land Acquisition Collector and ensure that the said amounts are duly credited in the name of TIDCO. If any directions are required in this regard, let an application be moved with an advance copy to the Land Acquisition Collector's office so that it can be represented before the Court.

16. The ex-management of TIDCO shall assist the OL's office in obtaining the release of the said amounts so that the fund position in respect of TIDCO can be secured.

17. Ld. counsel for Maximal Infrastructure Pvt. Ltd. has also handed over the no objection certificate (NOC) to the OL's office for transfer of the four towers in favour of BSF Family Welfare Society and TIDCO as directed yesterday i.e. on 20th December, 2023.

18. List on 27th February, 2024.

PRATHIBA M. SINGH, J.

DECEMBER 21, 2023 mr/kt CO.PET. 39/2009 & CO.PET. 333/2010 Page 9 of 9 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 23/12/2023 at 02:36:23