National Spot Exchange Ltd vs Lotus Refineries Pvt Ltd
2021 Latest Caselaw 11924 Bom

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

                         CHAMBER SUMMONS NO.1190 OF 2019
                                       IN
     COMMERCIAL EXECUTION APPLICATION (LODGING) NO.468 OF 2019

National Spot Exchange Ltd.                     .. Applicant-Decree Holder
            Vs.
Lotus Refineries Pvt. Ltd.                      .. Respondent-Judg. Debtor


Mr. Shlok Parekh, with Ms. Fatima Fernandes, i/by Vaish Associates, for the
Applicant-Decree Holder.
Mr. Zaid S. Ansari, with Mr. Mangesh R. Kokaru, i/by Zaid S. Ansari &
Associates, for the Respondent-Judgment Debtor.


                                                CORAM : A. K. MENON, J.

                                                DATE    : 26TH AUGUST, 2021.
P.C. :

1. A grievance is made that the affidavit-of-disclosure filed by one Arun

Kumar Sharma, Managing Director of the judgment-debtor, is not complete

in all respects. No particulars whatsoever have been provided. The affidavit

contains statements pertaining to movable properties, including bank

accounts, and immovable properties separately. It is stated on oath that even

the personal properties of the Managing Director have been attached by the

MPID Court and PMLA Court. Mr. Ansari contends that the applicant has

sought disclosure of properties which are all personal properties of the

promoters / directors of the respondent-company, which in any event stand

attached and that these are not properties of the respondent-company. In

20-CHSCD-1190-2019.doc Dixit paragraph 10 of the affidavit, the deponent states that the respondent does

not have any other asset save and except those disclosed in the affidavit,

namely, items 4 and 5.

2. Mr. Ansari states that as per the instructions that he has received, only

two bank accounts referred to in items 4 and 5 of the table pertaining to

movable properties, are belonging to the respondent-company. Prima facie it

appears that the respondent-company has not made a true disclosure. This is

evident from the language of paragraph 10, where the deponent said that the

respondent i.e. the company does not have any other asset save and except

those two bank accounts as per records available with the deponent. No

financial records of the respondent-company have been produced. Income

Tax Returns, Balance Sheet & Profit and Loss Accounts of the respondent-

company have not been produced. Articles of Association of the respondent-

company have not been produced. In these circumstances, Mr. Ansari states

that he will ensure that true copies of Articles of Association, all income tax

returns, balance sheet & profit and loss accounts for last five years shall be

provided to the Advocates for the applicant within one week from today.

3. At this stage, Mr. Ansari states that respondent-company will file an

additional affidavit providing all the particulars and in the meanwhile offer

inspection to the applicant's Advocate of all the documents pertaining to the

company and its affairs disclosing assets and liabilities, if any.

20-CHSCD-1190-2019.doc Dixit

4. Prima facie, it appears that it will be necessary to summon all the

directors of the respondent-company in order to ascertain the assets of the

company and in order to ensure compliance with the orders of the court.

5. In the circumstances, I pass the following order :-

(i) The respondent-company to file an additional affidavit

providing all particulars of the assets of the company,

movable and immovable, on or before 31st August 2021.

(ii) As regards the properties, claimed to be personal

properties, movable and immovable, listed in paragraph

9 of the disclosure affidavit, the additional affidavit

shall disclose all particulars of the bank accounts

including the dates on which these fixed deposits are

maturing and balances in the bank accounts etc..

(iii) Respondent-company to provide true copies of the up-

to-date bank statements to the applicant's Advocates on

or before 31st August 2021.

(iv) As far as immovable properties listed in disclosure

affidavit are concerned, since they are claimed to be

owned by the deponent-Managing Director himself,

copies of the title-deeds shall be provided to the

Advocates for the applicant also by 31st August 2021.

20-CHSCD-1190-2019.doc Dixit

(v) The respondent-company is also directed to provide

Income Tax Ward, where the company is assessed,

along with PAN and all particulars of its directors,

including DIN.

(vi) All other documents, including other bank accounts,

which are said to have been disclosed before the MPID

and PMLA Courts and EOW shall also be furnished to

the Advocates for the applicant on or before 31 st August

2021.

(vii) The respondent-company, in the meanwhile, shall offer

inspection to the applicant's Advocate of all documents

forming subject matter of disclosure.

(viii) List the Chamber Summons on 8th September 2021 for

compliance.

(ix) Meanwhile, affidavit-in-rejoinder, if any, to be filed on

or before 2nd September 2021.

(A. K. MENON, J.)

20-CHSCD-1190-2019.doc Digitally signed SNEHA by SNEHA ABHAY DIXIT ABHAY Date:

DIXIT   2021.08.27
        17:40:12 +0530     Dixit