Bombay High Court
Idbi Trusteeship Services Ltd. ... vs Mid-City Infrastructure Pvt. ... on 7 May, 2021
Bench: R. I. Chagla
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.
----------
CORAM : R.I. CHAGLA J.
DATE : 7th May, 2021
(V.C.)
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8-ial-11001-2021.doc
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
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
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.
8-ial-11001-2021.doc
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
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.
8-ial-11001-2021.doc
(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.]
