Parasram H Bhojwani vs Pravinchand Sehgal And 2 Ors
2021 Latest Caselaw 4908 Bom

               IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                   ORDINARY ORIGINAL CIVIL JURISDICTION
                 COURT RECEIVER'S REPORT NO. 215 OF 2021
                                                    IN
         COMMERCIAL EXECUTION APPLICATION NO. 565 OF 2019
                                              WITH
                 COURT RECEIVER'S REPORT NO. 102 OF 2021
                                              WITH
                    INTERIM APPLICATION NO. 2404 OF 2020
                                              WITH
                 INTERIM APPLICATION (L) NO. 7373 OF 2021



Parasram H. Bhojwani                      ... Judgment Creditor/Plaintiff
         vs.
Pravinchand Sehgal                         ...         Judgment Debtors/Defendants
Proprietor and Ors.



Mr. S. C. Naidu a/w. Mr. Aniketh Poojari and Mr. T. R. Yadav i/b. M/s. C.
R. Naidu & Co. for the Applicant.
Mr. Vaibhav Charalwar and Mr. Pritvish Shetty i/b. M/s. Vidhi Partners
for Judgment Debtors.
Mrs. Rekha Rane, 2nd Asstt. To Court Receiver.


                                                     CORAM : A. K. MENON, J.

                                                     DATE    : 18th MARCH, 2021
P.C. :

1. The Court Receiver has filed this report seeking the following

directions :

24-CRR-204-2020-COMEX-565-2019-COMSS-855-2017.odt rrpillai

(a) Whether the court Receiver should accept the final offer of Rs.

80,00,000/- (Rs. Eighty Lakhs Only) given by Mr. Sunil Parakh ?

(b) Cost of this report may be awarded in the sum of Rs. 3,000/- and

Court Receiver be allowed to deduct the same from the suit account;

(c) Any other directions that this Hon'ble Court may deem fit and

proper;

2. The Receiver submits that pursuant to order dated 20 th January,

2020, Report No. 204 of 2020 had been filed. Thereafter considering

the valuation, the bid was found to be unacceptable. At that stage the

final offer was Rs. 65,50,000/-. The property situated at Jolly Bhavan-

A, Commercial Premises Co-operative Society Ltd, New Marine Lines,

Churchgate, Mumbai-400 020, in the heart of the commercial district

and pursuant to second attempt at sale and pursuant to advertisement

published on 25th January, , 2021 in the Free Press Journal and

Maharashtra Times the sole bidder has offered a sum of Rs. 80 lakhs.

3. The bidder is present in Court and the Receiver seeks direction as

to whether that bid could be accepted. In the course of hearing the

bidder was asked whether he is inclined to increase the offer. He has

already deposited earnest money of Rs. 10 lakhs and the bidder states

24-CRR-204-2020-COMEX-565-2019-COMSS-855-2017.odt rrpillai his best offer is Rs. 85 lakhs. According to him there are dues of the

society which he is required to bear.

4. I have heard the learned counsel for the Judgment debtor, and the

Judgment creditor. Mr. Naidu has sought to demonstrate that the

decretal amount is Rs. 5,83,58,904.28. Interest payable per month on

the decretal amount @ 18% is Rs. 7,64,384/-. Quarterly dues of the

society is Rs. 28,273/- and security charges Rs. 18,000/- per month.

The judgment creditor has been paying security costs and in any event

the judgment creditor who is bound to discharge all security costs.

5. The valuation shown as per website of Inspector General of

Stamps and Revenue, extract of which has been filed by the judgment

creditor vide an affidavit dated 6 th March, 2021 is on record. In

paragraph 11 of that affidavit the judgment creditor has stated that the

offer is considerably close to the market value of the premises since the

web portal of the Inspector General of Stamps and Revenue has

disclosed a value of Rs. 90,81,360/- added to this is the fact and as

stated in the affidavit that the valuation having been conducted by the

appropriate authority under the Maharashtra Stamp (Determination of

True Market Value of Property) Rules, 1995 and the Ready Reckoner

supports the valuation basis of the valuation disclosed on the website.

The affidavit goes on to state that the building is 50 years of age and

24-CRR-204-2020-COMEX-565-2019-COMSS-855-2017.odt rrpillai will attract depreciation of 50% once building is 50 years of age. The

premises is housed in the building which is currently 49 years of age

and based there on valuation is acceptable. If the building crosses 50

years of age which it will in April 2021 i.e. in the ensuing financial

year, the Ready Reckoner value may be lower.

6. Having noted that this is the second attempt of sale after it was

advertised by the judgment debtor and in view of the fact that the offer

today is at Rs. 85 lakhs on an "as is, where is, what is basis" the

successful bidder will have to pay all costs, charges and expenses of the

society and stamp duty and registration charges. The judgment debtor is

represented today and the learned Advocate for the judgment debtor

confirms that he has not managed to locate a buyer. He is also not able

to obtain a better price. In the circumstances, I find the offer is

sufficiently close to the reserve price fixed earlier in the valuation report

and in my view report of the Receiver can be disposed with the

following order :

(i) Report is allowed in terms of prayer clause (a) with the

modification that the final price shall be Rs. 85 lakhs. The bidder Sunil

Parakh is declared successful bidder. He will be bound to pay the

difference within a period of two weeks after giving the credit to the

amount of Earnest money deposited in a sum of Rs. 10 lakhs and as

24-CRR-204-2020-COMEX-565-2019-COMSS-855-2017.odt rrpillai recorded in paragraph 5 of the report.

(ii) In addition the bidder shall also pay cost and charges and

execution of the conveyance or transfer in his favour as also stamp duty

and registration charges at ad-valorem rates.

(iii) Subject to the aforesaid the bidder shall also pay expenses of the

society maintenance charges, property taxes and all levies.

(iv)    Report is allowed in the above terms.

(v)     In the meantime Receiver shall proceed to encash the earnest

money deposited by the bidder.

(vi)    In view of the aforesaid this report is disposed and Report no. 107

is also disposed.

(vii) Liberty is granted to the Receiver to apply after completion of the

sale in respect of the other expenses

(A.K.MENON, J.)

Digitally signed by Rajeshwari R.

Rajeshwari    Pillai
R. Pillai     Date:
              2021.03.19
              18:17:28
              +0530

24-CRR-204-2020-COMEX-565-2019-COMSS-855-2017.odt rrpillai