8-ial-11001-2021.doc
jsn
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
INTERIM APPLICATION (L) NO. 11001 OF 2021
IN
EXECUTION APPLICATION NO.9357 OF 2021
IN
SUIT NO.4497 OF 2021
IDBI Trusteeship Services Ltd. & Anr. ...Applicants
(Orig. Plaintiffs)
In the matter between
IDBI Trusteeship Services Ltd. & Anr. ... Decree Holder
(Orig. Plaintiffs)
Versus
Mid-City Infrastructure Pvt. Ltd. & Ors. ...Respondents
(Ori. Defendants)
And
The Court Receiver ... Additional
Respondent
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Mr. Ashish Kamat, Mr. Shyam Kapadia, Mr. Gaurav Shah and
Ms. Jigisha Vadodaria i/b. Negandhi Shah & Himayatullah for
the Applicants / Plaintiffs.
Mr. Vibhav Krishna for the Respondents / Judgement Debtors.
Mrs. Rekha Rane, 2nd Assistant to Court Receiver.
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CORAM : R.I. CHAGLA J.
DATE : 7th May, 2021
(V.C.)
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ORDER :
1. Heard learned Counsel for the parties.
2. By order dated 5th May, 2021, this Court had recorded that the Applicants had pressed for relief in terms of prayer clause (a), (b), (d) and (e) of the Interim Application. The submission of the learned Counsel for the Applicants was also recorded that these prayers are required to be granted as they are terms of the Consent Terms entered into between the Plaintiffs and Respondents and by which the Suit was decreed. It is noted that the learned Counsel for the Applicants was directed to serve notice of the order dated 5th May, 2021 on the Respondents - Judgment-Debtors. It was made clear that in the event of the Respondents - Judgment Debtors remaining absent despite notice, relief in terms of prayer clauses (a), (b),
(d) and (e) shall be granted.
3. Today, the Respondents - Judgment Debtors are represented by learned Counsel Mr Vibhav Krishna. He has submitted that the Respondents - Judgment Debtors require time to put in a reply to the Interim Application. He has further 2/7 ::: Uploaded on - 11/05/2021 ::: Downloaded on - 10/09/2021 17:05:57 ::: 8-ial-11001-2021.doc submitted that the submission made by the learned Counsel for the Applicants that excess area has been allotted than that mentioned in the development agreement to the existing members as well as allotting several units to persons who do not fnd mention in the Development Agreement requires to be dealt with. He has submitted that a term sheet had been prepared though not signed and by which revised Consent Terms was contemplated. He wishes to place the term sheet on record.
4. The learned Counsel for the Applicants has pressed for prayer clauses (a), (b), (d) and (e) to be granted. He has submitted that the prayers sought for are in terms of the Consent Terms, particularly since the Respondents - Judgment Debtors have defaulted in payment of the frst installment of Rs.40 Crores in respect of the said three facilities viz. the Debenture Facility of Rs.82 Crores, Term Loan Facility and Debenture Facility of Rs.38 Crores (Debenture Facility No.2).
5. The learned Counsel appearing for the Respondents - Judgment Debtors has in response to the relief sought has no 3/7 ::: Uploaded on - 11/05/2021 ::: Downloaded on - 10/09/2021 17:05:57 ::: 8-ial-11001-2021.doc objection for the Court Receiver, High Court, Bombay to be appointed and for the Court Receiver to take possession of the mortgaged properties and hypothecated properties, more particularly described in Schedules I to VII to the Execution Application without dispossessing the Respondents - Judgment Debtors. He objects to the latter part of prayer clause (a) i.e. sale of these properties by way of public auction or by private treaty. He has also on instructions made a statement that the Respondents - Judgment Debtors shall not in any manner deal with, dispose of or part with possession of or alienate or encumber or transfer or create any right, title or interest in favour of any third party, or assign or induct any one into the mortgage and hypothecated properties more particularly described in Schedules I to VII of the Execution Application as well as in respect of their assets, movable or immovable. He has further sought time to put in a response to the Interim Application and till then prayer clause (d) which is for a direction to the Judgment-Debtors to disclose all their assets and properties (including moveable and immovable, tangible and intangible) along with all documents of title relating thereto and all charges and encumbrances thereon and for attachment under the orders of this Court, be not granted. 4/7 ::: Uploaded on - 11/05/2021 ::: Downloaded on - 10/09/2021 17:05:57 :::
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6. Having considered the submission, it is noted that prayer clauses (a), (b), (d) and (e) are in terms of the Consent Terms. Admittedly there has been a default of payment of the frst installment of Rs.40 Crores in respect of the said three facilities payable under the Consent Terms. However, since the learned Counsel for the Respondent has made a fair request for time to fle a Reply to the Interim Application and till then certain relief may be granted to the Applicants, an order acceptable to the parties can be passed till the next date. Hence the following order:-
(i) The Court Receiver, High Court, Bombay stands automatically appointed under the Consent Terms and shall at present take only symbolic possession in respect of the movable and immovable properties, more particularly described in Schedules I to VII to the Execution Application.
(ii) The statement of the learned Counsel for the Respondents - Judgment Debtors on instructions that they shall not in any manner deal with, dispose of or part with possession or alienate or encumber or transfer or create any 5/7 ::: Uploaded on - 11/05/2021 ::: Downloaded on - 10/09/2021 17:05:57 ::: 8-ial-11001-2021.doc right, title or interest in favour of any third party, or assign or induct any one into the mortgaged and hypothecated properties more particularly described in schedules I to VII of the Execution Application as well as with respect to any of their assets, movable or immovable as referred to in prayer clause (e) of the Interim Application is accepted as an undertaking to this Court.
(iii) The Respondents - Judgment Debtors are granted three weeks time to fle their Affdavits in Reply to the Interim Application i.e. on or before 29th May, 2021 with copy to other side.
(iv) The Applicants are permitted to fle Affdavit in Rejoinder to the Interim Application thereto on or before 3rd June, 2021 with copy to other side.
(v) The Court Receiver shall fle its report within a period of two weeks as to the symbolic possession having been taken.
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(vi) Needless to state that the Applicants are at liberty to apply on the next date for further relief in terms of prayer clauses (a) and (d) of the Interim Application.
(vii) The Interim Application is adjourned to 9th June, 2021.
[R.I. CHAGLA J.] 7/7 ::: Uploaded on - 11/05/2021 ::: Downloaded on - 10/09/2021 17:05:57 :::