Delhi High Court - Orders
Re-M/S Jvg Finance Ltd vs Unknown on 12 September, 2023
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~C11
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CO.PET. 265/1998 & CO.APPLs. 1633/2011, 1637/2011,
1639/2011, 1641/2011, 1643/2011, 1645/2011, 1649/2011,
1651/2011, 1653/2011, 1655/2011, 1657/2011, 1659/2011,
1663/2011, 1667/2011, 1669/2011, 1671/2011, 1673/2011,
1675/2011, 1677/2011, 1679/2011, 1681/2011, 1683/2011,
1685/2011, 1687/2011, 1689/2011, 1691/2011, 1693/2011,
1695/2011, 1697/2011, 1703/2011, 1705/2011, 1708/2011,
1710/2011, 1712/2011, 1714/2011, 1716/2011, 1718/2011,
1720/2011, 1722/2011, 1724/2011, 1728/2011, 1730/2011,
1732/2011, 1736/2011, 1738/2011, 1740/2011, 1742/2011,
1744/2011, 1746/2011, 1748/2011, 1750/2011, 1796/2011,
1798/2011, 1815/2011, 2274/2011, 2280/2011, 2283/2011,
2292/2011, 2301/2011, 2304/2011, 2307/2011, 2313/2011,
2359/2011, 452/2012, 454/2012, 456/2012, 458/2012, 460/2012,
462/2012, 468/2012, 470/2012, 472/2012, 476/2012, 480/2012,
1406/2012, 1414/2012, 1416/2012, 1419/2012, 1422/2012,
1425/2012, 1428/2012, 1431/2012, 1699/2015, 483/2018, 75/2019,
1007/2019, 1132/2019, 278/2020, 402/2023, 603/2023, 604/2023,
605/2023, 606/2023, 607/2023, 608/2023, 647-58/2023, 660/2023,
OLR 78/2023
RE-M/S JVG FINANCE LTD. ..... Petitioner
Through:
versus
.... ..... Respondent
Through: Mr. Ramesh Babu, Ms. Manisha
Singh, Ms. Nisha Sharma & Mr.
Rohan Srivastava, Adv. for RBI.
(M:9873922734)
Mr. Kunal Sharma & Mr. Shubhendu
Bhattacharyya, Advs. (M:
8054044818)
Mr. Dheeraj Gupta, Adv. with Ms.
Aneeta Sharma, AR for Ex
Management.
CO.PET. 265/1998 Page 1 of 10
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 16/09/2023 at 18:31:20
Mr. Gaurav Gupta, Sr. Standing
Counsel with Mr. Shivendra Singh
and Mr. Puneet Singhal, Jr. Standing
Counsels of Income Tax Deptt.
Mr. Tanmay Yadav, Adv. for
Applicant/ Purchaser. (M:
9971526082)
Mr. Raja Chatterjee, Mr. Piyush
Sachdev & Ms. Anupama, Advs. for
Applicant. (M:8800919326)
Mr. Aman Vachher, Mr. Ashutosh
Dubey, Mr. Akshat Vachher & Mr.
Amit Kumar, Advs. for Applicant.
(M:9711089214)
Mr. Rajshekhar Rao, Sr. Advocate
with Mr. Krishna Dev J., Mr. Aaditya
Mishra & Mr. Dushyant, Advs. for
Applicant.
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 12.09.2023
1. This hearing has been done through hybrid mode. CO.APPL.660/2023 (for early hearing)
2. This is an application seeking early hearing of CO.APPL.572/2023. In view of the reasons stated in this application, early hearing is allowed.
3. Issue notice in CO.APPL.572/2023.
4. Let reply be filed by any of the non-applicants, including the OL and the Ex-Management of the Company (in liqd.) i.e., JVG Finance Ltd.
5. The application is disposed of.
CO.APPLs.605/2023, 608/2023, 649/2023, 652/2023, 655/2023, 658/2023 (for exemptions)
6. Allowed, subject to all just exceptions. Accordingly, these CO.PET. 265/1998 Page 2 of 10 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 16/09/2023 at 18:31:20 applications are disposed of.
CO.APPLs.603/2023, 606/2023, 647/2023, 650/2023, 653/2023, 656/2023 (for delay)
7. These applications have been filed by various Applicants seeking condonation of delay in filing the claims.
8. Insofar as the delay in filing the claims is concerned, none of the said Applicants are represented today. These applications be listed again on the next date of hearing. If none appears for the Applicants on the next date of hearing, these applications shall be liable to be dismissed for non- prosecution.
9. Insofar as the claims, which are raised in respect of the land at Sy No. 189(P), Village Kondapur, Srilingampally, Ranga Reddy District, Hyderabad, Telengana, admeasuring approximately 5.6 acres (hereinafter, 'Hyderabad Property') are concerned, the said Applicants may bring the following documents on the next date of hearing:
(i) Consolidated map of the Hyderabad Property;
(ii) A chart giving the dates of their respective sale deeds and related documents, dates of purchase of plot, actual sale consideration as per the agreement and the remaining sale consideration that is to be paid.
10. List this matter for further hearing on 19th September, 2023. OLR (not numbered) - Diary No. - 1650261/2023
11. Let the OLR be numbered and brought on record. In the present case, vide order dated 22nd August, 2023, the Official Liquidator (OL) was directed to file an updated status report of the Company (in liqd.) i.e. JVG Finance Ltd. The relevant part of the said order is as under:
CO.PET. 265/1998 Page 3 of 10This 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 16/09/2023 at 18:31:20 "3. In view of the submissions made in Court today, the concerned official from the Official Liquidator's office, Mr. Kataria shall produce on the next date a status report in respect of the following aspects:
i. The total amount recovered from sale of movable and immovable assets of the company M/s JVG Finance Ltd. in chart form till date; ii. The total number of claims received and the value thereof;
iii. Total amount of claims disbursed till date; iv. Details of any other lands which are in the process of valuation/ sale and the approximate value of the said lands;
v. Total amount of outstanding claims in two categories:
(a) Claims yet to be adjudicated,
(b)Claims adjudicated and yet to be disbursed;
vi. Amounts disbursed to security agencies for securing of the assets and if in respect of any of the assets which were secured by the security agency, any encroachments have been recorded and details thereof;
vii. If any fine/penalty has been imposed on any security agency in case of encroachments on the land being secured by the said agency;
viii. Funds in the hands of the OL."
12. Pursuant to the said order, the OL has handed over the report dated 11th September, 2023 today. The copies of the same have been served upon ld. Counsel for the Ex-Management of the Company (in liqd.) and ld. Counsel for the Income Tax Department as also representative Counsel on behalf of the Petitioner.
13. The court has perused the OL Report dated 11th September, 2023.
14. The said report provides the status of the properties of the Company CO.PET. 265/1998 Page 4 of 10 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 16/09/2023 at 18:31:20 (in liqd.).
It is noted that insofar as the Flat Nos.278A, 279A & 280A, Pocket E, GTB Enclave, Delhi are concerned, it is submitted that Flat No.278A was sold and was confirmed vide order dated 4th August, 2023. Remaining two flats i.e. Flat Nos.279A & 280A are yet to be sold. The Flat No.B-202, Panchmukhi Apartment, Off Yari Road, Versova, Andheri (W), Mumbai and Flat No.105, Panchmukhi Apartment, Off Yari Road, Versova, Andheri (W), Mumbai are yet to be sold.
15. Insofar as the outstanding claims of the depositors are concerned, there are a total number of 5350 claims, which are yet to be adjudicated/quantified by the Chartered Accountancy firm - M/s Ellahi Goel & Co. (hereinafter, 'CA firm'), which is stated to be appointed just a few weeks ago.
16. The CA firm, who is represented in the Court today, has sought three to six months for adjudication of the claims.
17. The Court is of the opinion that the duration sought by the CA firm is a very long duration and this Court does not deem it fit to grant such a period for merely examination of the documents.
18. In view thereof, the following directions are issued:
(i) Insofar as Flat Nos.279A & 280A GTB Enclave, Delhi are concerned, let the OL take steps to publish a sale notice within two weeks in respect of these two flats and proceed further in this regard for sale of these flats. An application may be moved by the OL for approval of the sale notice.CO.PET. 265/1998 Page 5 of 10
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 16/09/2023 at 18:31:20
(ii)Insofar as the Flat No.B-202, Panchmukhi Apartment, Off Yari Road, Versova, Andheri (W), Mumbai is concerned, let the OL take steps to publish a sale notice within two weeks in respect of this flat and proceed further in this regard for sale of this flat. An application may be moved by the OL for approval of the sale notice.
(iii) Insofar as the Flat No.105, Panchmukhi Apartment, Off Yari Road, Versova, Andheri (W), Mumbai is concerned, let the OL take steps to publish a sale notice within two weeks in respect of this flat and proceed further in this regard for sale of this flat. An application may be moved by the OL for approval of the sale notice.
(iv)Insofar as the Factory premises situated at Plot No.51, MIDC, Marol, Andheri (E), Mumbai (4555 Sq. Yards) is concerned, let the valuation report be obtained within next one month and be placed before the Court.
(v) Insofar as the adjudication/quantification of the claims of the depositors by the CA firm is concerned, if the said CA firm is willing to complete the process of assessment/adjudication of these claims, a maximum period of eight weeks is given for doing the same. If the said CA firm is not willing to take up this assignment, the OL shall appoint an alternate chartered accountant for the same. If the OL wishes to engage some staff for the said purpose, she is free to do so on contractual basis for a period of two months for assessment and quantification of the claims.
CO.PET. 265/1998 Page 6 of 10This 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 16/09/2023 at 18:31:20 CO.APPL.617/23
19. This application has been filed by the Petitioner - Reserve Bank of India seeking permission to disburse the initial claim amount of the claimants.
20. Insofar as the claims adjudicated and yet to be disbursed are concerned, the OL's Report reads as under:
"(b) Claims adjudicated and yet to be disbursed:-
1. 555 Claims for Rs.72,80,097/- application already filed for approval for which CA 617-23 has been filed, seeking permission for disbursal of the amounts, which is next listed on 19/09/2023.
2. 178 claims for Rs.1,19,78,325/- Claims of persons who had purchased plots in Baghpat. The bank details are being sought from the Claimants to transfer the amount through RTGS mode.
3. Rs.3,78,50,382/- being balance amount to be paid to claimants whose claims have been admitted for an amount above Rs.50,000/- and to whom interim payment has been made in terms of order dated 08.08.2016. The said amount is to be reconciled by the Chartered Accountant."
21. Insofar as the claims which are adjudicated but are yet to be disbursed are concerned, permission is granted for disbursal of the claims mentioned above at (b)1, 2 & 3. Let the amounts be disbursed within eight weeks after due verification.
22. Accordingly, CO.APPL.617/23 is also disposed of in view of the above orders.
CO.APPL.402/23 in CO.PET. 265/1998
23. This application has been filed on behalf of the OL, seeking permission to release payment to the security agencies, Manasavi Security CO.PET. 265/1998 Page 7 of 10 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 16/09/2023 at 18:31:20 Services and Kat Eye Securities.
24. Over the last few hearings, the Court has learnt that there is large scale encroachment in a number of properties related to the Company in liquidation. Insofar as the security agencies are concerned, no further disbursal shall be made to them directly by the OL.
25. The said agencies are however free to approach the Court by way of an application, if any payment is to be sought along giving the following details by way of an proper affidavit:
(i) The total number and area of properties being secured and period since when the Applicant was engaged in respect of each of the properties relating to the Company in liquidation.
(ii) Whether there is any encroachment or trespass in any of the properties being secured by it.
(iii)Submissions and details given to the concerned police authorities regarding the security guards that have been deputed at the properties by the Applicant.
(iv) Photographs of the properties displaying the manner in which security is being provided by the Applicant, along with the current date of the photographs, which can be verified by the Court.
26. The application CO.APPL.402/23 is disposed of in the above terms. CO.APPLs. 1633/2011, 1637/2011, 1639/2011, 1641/2011, 1643/2011, 1645/2011, 1649/2011, 1651/2011, 1653/2011, 1655/2011, 1657/2011, 1659/2011, 1663/2011, 1667/2011, 1669/2011, 1671/2011, 1673/2011, 1675/2011, 1677/2011, 1679/2011, 1681/2011, 1683/2011, 1685/2011, 1687/2011, 1689/2011, 1691/2011, 1693/2011, 1695/2011, 1697/2011, 1703/2011, 1705/2011, 1708/2011, 1710/2011, 1712/2011, 1714/2011, 1716/2011, 1718/2011, 1720/2011, 1722/2011, 1724/2011, 1728/2011, CO.PET. 265/1998 Page 8 of 10 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 16/09/2023 at 18:31:20 1730/2011, 1732/2011, 1736/2011, 1738/2011, 1740/2011, 1742/2011, 1744/2011, 1746/2011, 1748/2011, 1750/2011, 1796/2011, 1798/2011, 1815/2011, 2274/2011, 2280/2011, 2283/2011, 2292/2011, 2301/2011, 2304/2011, 2307/2011, 2313/2011, 2359/2011, 452/2012, 454/2012, 456/2012, 458/2012, 460/2012, 462/2012, 468/2012, 470/2012, 472/2012, 476/2012, 480/2012, 1406/2012, 1414/2012, 1416/2012, 1419/2012, 1422/2012, 1425/2012, 1428/2012, 1431/2012, 1699/2015, 483/2018, 75/2019 & CO.PET. 265/1998
27. Insofar as the claims received from the Sales Tax and Income Tax Department are concerned, the OL Report dated 11th September, 2023 states that their claim is to the tune of Rs.350 crores. The sales tax claims are now stated to be under the GST Department.
28. Accordingly, Mr. Gaurav Gupta, ld. Sr. Standing Counsel for the Income Tax Department shall obtain instructions, both from the GST department as also the Income Tax Department in respect of the JVG Finance Ltd and as to whether any steps are being taken by the said departments for recovery of these amounts till date. A status report be also filed by the Income Tax Department and GST Department in respect of the outstanding amount from the JVG Finance Ltd.
29. Insofar as the Hyderabad property is concerned, as per the OL report, in terms of the order dated 23rd May, 2019 passed by this Court the OL was directed to fence the entire land in order to protect it from encroachment.
30. According to the report filed by the OL, 80% of the fencing has been completed. However, remaining has not been completed due to certain obstacles being created by occupants and non-payment to the contractor, who has been engaged in the fencing.
31. Insofar as the demolition qua construction which may have been carried out in the said property is concerned, interim protection has been CO.PET. 265/1998 Page 9 of 10 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 16/09/2023 at 18:31:20 granted to some occupants vide orders dated 14th June, 2023 and 4th July, 2023. It is made clear that the fencing of the land is however not to be affected by the said orders. Fencing of the land is also crucial in order to safeguard the said property.
32. It is directed that the remaining fencing shall be carried out within a period of four weeks from today. The payment, if any, to the contractor may be released by the OL within three days. The photographs of the entire fencing of the land shall be placed on record by the next date of hearing by the ld. Counsel for the OL.
33. If any of the occupants is found responsible for creating any obstacles or impediment in the fencing process, they shall be liable to be prosecuted in accordance with law including taking of contempt action.
34. It is made clear that status quo shall also be maintained and no further construction shall be permitted by anyone, on the Hyderabad property.
35. Mr. Kataria, official from the OL office who is present today, shall also remain present in the Court on the next date of hearing.
36. If any of the parties wish to respond to the OL Report dated 11th September, 2023, they are free to do so.
37. List this matter for further hearing on 19th September, 2023.
PRATHIBA M. SINGH, J SEPTEMBER 12, 2023/dk/kt CO.PET. 265/1998 Page 10 of 10 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 16/09/2023 at 18:31:20