Bombay High Court
Il And Fs Financial Services Ltd vs Novel Ftwz Limited (Formerly ... on 5 May, 2021
Bench: R. I. Chagla
4-CHSCD-438-903-2019.doc
JSN
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
CHAMBER SUMMONS NO.438 OF 2019
IN
EXECUTION APPLICATION (L) NO.381 OF 2019
IL & FS Financial Services Ltd. ... Applicant
In the matter between
IL & FS Financial Services Ltd. ... Ori Plaintiff
Versus
Novel FTWZ Ltd. & Ors. ...Respondents
WITH
CHAMBER SUMMONS NO.903 OF 2019
IN
EXECUTION APPLICATION (L) NO.381 OF 2019
Novel FTWZ Ltd. & Ors. ... Applicant
In the matter between
IL & FS Financial Services Ltd. ... Ori Plaintiff
Versus
Novel FTWZ Ltd. & Ors. ...Respondents
----------
Dr. Birendra Saraf, Senior Counsel with Mr. Rohan Savant, Mr.
Sachin Chandrana and Mr. Chandrajit Das i/b. Manilal Kher
Ambalal & Co. for the Applicant.
Mr. Zal Andhyarunina, Senior Counsel, C.R. Naidu i/b. Ashish
Agarkar, Vinod Parekh and Sumit Shinde and Shruti Sardesai
for the Respondents.
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4-CHSCD-438-903-2019.doc
CORAM : R.I. CHAGLA J.
DATE : 5th May, 2021
(V.C.)
ORDER :
1. Heard learned Senior Counsel for parties.
2. The learned Senior Counsel for the Applicant has referred
to the orders passed by this Court from time to time in the
execution proceedings with regard to the sale of one of the
properties of the judgment debtors which is in Haryana
("Haryana Property"). By an order dated 13th November, 2019,
this Court directed that the proposed purchaser of the Haryana
Property. Shaswat Stainless Works be made a party to the
Chamber Summons taken out in the Execution Application.
Thereafter, the purchaser Shaswat Stainless Works has been
represented before this Court. By subsequent orders dated 17th
December, 2019, 2nd March, 2020 and 10th August, 2020, this
Court has directed the purchaser Shaswat Stainless Works to
carry out due diligence as well as completion of the process of
purchase of the Harayana Property. In fact, it has been noted
in the order dated 17th December, 2019 that Shaswat Stainless
4-CHSCD-438-903-2019.doc
Works agreed to deposit in this Court 10% of the purchase
consideration and for deposit of the balance 90% of the
purchase consideration within a period of two months from the
date of deposit of the 10% purchase consideration. The
decreetal dues against the judgment debtor was stated to be
about Rs.48.79 crores which has only increased with the
passage of time. Further, in the order dated 10th August, 2020,
the learned Single Judge (Coram :- G.S. Patel, J.) has in fact
noted the submission of the learned Senior Counsel for the
Applicant that his clients has in respect of the Haryana
Property been kept dangling for nearly a year or more. It has
also been noted that due diligence had in fact been completed
and Shaswat Stainless Works is committed to the purchase of
the Haryana property (mostly agricultural land). However, this
Court had not appointed the Court Receiver. It was noted that
in view of Covid 19 pandemic situation the Judgment Debtor is
unable to travel to Haryana and therefore, no purpose would be
served in appointment of the Court Receiver in these
circumstances. In fact, the learned Senior Counsel appearing
for the Applicant was requested by this Court to prevail on his
clients and show them the wisdom (to say nothing of
practically) of a little patience.
4-CHSCD-438-903-2019.doc
3. It so appears that the same Covid 19 pandemic situation
that prevailed on 10th August, 2020 has now worsened with a
second waive.
4. An Affdavit on behalf of Respondent No.1 dated 10th
April, 2021 has been fled on 3rd May, 2021 and which has
disclosed the steps taken towards the sale of Haryana Property
for realization of the decreetal amount. This includes the
application for change of land user made and followed up from
time to time after passing of the order dated 10th August,
2020. However, it is stated that in view of the farmers agitation
as well as pandemic situation a reasonable time be given, so
that the Respondent can aggressively pursue and obtain the
change of land user approval from the authorities for
completion of the sale process.
5. The learned Senior Counsel for the Applicant has pressed
for attachment in respect of the other properties disclosed by
the Judgment Debtors / Respondents in their Affdavit of
disclosure.
4-CHSCD-438-903-2019.doc
6. However, considering that a reasonable time has been
sought by the Judgment Debtors / Respondents to aggressively
pursue and obtain the change of user approval from the
authorities for completion of the sale transaction with respect
to the Haryana Property and given the current pandemic
situation which has worsened, it would be appropriate to grant
further time to the Judgment Debtors / Respondents for
completion of the sale transaction. It is noted that this Court
from time to time has passed orders which have been referred
to above and which dates back to 13th November, 2019 by
which directions were issued for making the proposed
purchaser a party to the Chamber Summons and for
completion of the sale of the Haryana Property. Further,
considering the relief now sought to be pressed by the learned
Senior Counsel for the Applicant i.e. to seek the attachment of
the properties which have been disclosed in the Affdavit of
disclosure fled by the Judgment Debtors / Respondents, it
would be appropriate to place the Chamber Summons
immediately after the vacation.
7. In view thereof, the Chamber Summons is adjourned to
4-CHSCD-438-903-2019.doc
9th June, 2021, with the hope that the Judgment Debtors /
Respondents are in better position to apprise this Court of the
completion of the sale transaction with respect to the Haryana
property.
[R.I. CHAGLA J.]
