Vpn Motors Pvt. Ltd & Ors vs Union Of India & Ors on 22 October, 2021

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Delhi High Court - Orders

Vpn Motors Pvt. Ltd & Ors vs Union Of India & Ors on 22 October, 2021

Bench: Prateek Jalan

                  $~40 (2021 Cause List)
                  *     IN THE HIGH COURT OF DELHI AT NEW DELHI

                  +        W.P.(C) 11907/2021

                           VPN MOTORS PVT. LTD & ORS.              ..... Petitioners
                                        Through: Mr. Sumeet Shokeen, Advocate.

                                                      versus

                           UNION OF INDIA & ORS.                              ..... Respondents
                                         Through:          Mr. Jitesh Vikram Srivastava, SPC
                                                           with Mr. Prajesh Vikram
                                                           Srivastava, Adv. for R-1/UOI.
                                                           Mr. Gautam Singhal, Adv. for R-3.
                  CORAM:
                  HON'BLE MR. JUSTICE PRATEEK JALAN
                               ORDER

% 22.10.2021 The proceedings in the matter have been conducted through video conferencing.

CM APPL. 36841/2021(exemption) Exemption allowed, subject to all just exceptions. The application stands disposed of.

W.P.(C) 11907/2021 & CM APPL. 36840/2021(stay)

1. The petitioners have filed this writ petition in respect of actions taken by the respondent nos. 3-Edelweiss Asset Reconstruction Company Limited under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ["SARFAESI Act"]. The immediate ground for instituting the writ petition is that, at the instance of the respondent no. 3, the Chief Metropolitan Magistrate has passed an order dated 20.09.2021 appointing a Receiver over the petitioners' Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:22.10.2021 21:41:01 W.P.(C)11907/2021 Page 1 of 3 property [Plot No. 14, First Floor & Second Floor, Block-B, Pocket B-5, Sector-3, Rohini, New Delhi-110085; measuring 25.90 Sq. Mrts.], which the respondent no. 3 claims to hold as a secured asset.

2. Mr. Sumeet Shokeen, learned counsel for the petitioners, submits that the Receiver appointed by the CMM has given a notice dated 08.10.2021, through which he proposes to take possession of property in question on 25.10.2021 at 12:00 noon.

3. The petitioner has filed a Securitisation Application under Section 17 of the SARFAESI Act before the Debts Recovery Tribunal ["DRT"]. However, as the DRTs are at present non-functional for want of Presiding Officers, the petitioners have been compelled to approach this Court under Article 226 of the Constitution. It is only in these circumstances that the present writ petition is being entertained.

4. Mr. Shokeen submits that the mortgage was initially to the respondent no. 2 and not the respondent no. 3. However, the petitioners do not deny the fact of the mortgage of the said property. Mr. Gautam Singhal, learned counsel appearing for the respondent no. 3 on advance notice, states that the respondent no. 3 has since taken an assignment of the debt and the security from the respondent no. 2.

5. In the course of hearing, Mr. Singhal submits that the respondent no. 3 is agreeable to a One Time Settlement of the petitioners' dues.

6. In view of this position, the Receiver is directed to defer the taking of possession of the property in question until 30.11.2021, to enable the petitioners and the respondent no. 3 to work out a settlement, if possible. It is made clear that no further notice will be required to be given to the petitioners.

Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:22.10.2021 21:41:01 W.P.(C)11907/2021 Page 2 of 3

7. In order to balance the equities between the parties, the above order is passed subject to deposit of part of the claimed amount by the petitioners. According to the petitioners themselves, the instalments have not been paid since August 2019, amounting to 27 instalments of ₹31,244/- each. Having regard to these facts, the petitioners are directed to deposit with the respondent no. 3, a sum of ₹5 lakhs by 12:00 noon on 25.10.2021, and a further sum of ₹5 lakhs by 02.11.2021.

8. If the petitioners default in making either of these two payments, this order shall stand vacated and the Receiver will be entitled to take possession upon 48 hours' notice to the petitioners. In the event these two instalments are paid, the possession will be deferred until 30.11.2021. The petitioners have apparently instituted certain criminal complaints against the officers of the respondent no. 3. Mr. Shokeen submits that in the event the matter is settled, the petitioners will not proceed with the criminal complaints.

9. The petitioners are directed to maintain status quo as to the title, possession and character of the property in question.

10. This order is passed without prejudice to any other rights and remedies which the officers of respondent no. 3 may have in respect of the complaints filed by the petitioners.

11. The writ petition is disposed of in these terms, alongwith the pending application.

PRATEEK JALAN, J OCTOBER 22, 2021 'pv' Signature Not Verified Digitally Signed By:SHITU NAGPAL Signing Date:22.10.2021 21:41:01 W.P.(C)11907/2021 Page 3 of 3

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Delhi High Court - Orders