Bombay High Court
Parasram H Bhojwani vs Pravinchand Sehgal And 2 Ors on 14 October, 2022
Bench: B.P. Colabawalla
10.1.ia(l).2753.2020.doc
UTKARSH
KAKASAHEB
BHALERAO
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Digitally signed by
UTKARSH KAKASAHEB
BHALERAO
Date: 2022.10.18
12:25:13 +0530
ORDINARY ORIGINAL CIVIL JURISDICTION
INTERIM APPLICATION NO. 2753 OF 2020
IN
COMM. EXECUTION APPLICATION NO. 565 OF 2019
IN
SUMMONS FOR JUDGMENT NO. 9 OF 2018
IN
COMM. SUMMARY SUIT NO. 855 OF 2017
Parasram H. Bhojwani .. Applicant
(Judgment Creditor)
In the matter between:
Parasram H. Bhojwani .. Org. Plaintiff
Vs.
1)Pravinchand Sehgal (JD-1)
2)Gaurav Sehgal
3)Pooja Sehgal (JD-3) .. Org. Defendants
Mr. S. C. Naidu a/w Aniketh Poojari, Divya Yajurvedi, Sudesh Naidu, Pradeep
Kumar, Parshva Shahi i/b C. R. Naidu & Co. for the Applicant.
Mr. Karl Tamboly, Mr. Anuj Desai a/w Yashashree Munde, Sailee Dhayalkar
i/b Parinam Law Associates for Defendant Nos. 1 & 3.
CORAM:- B. P. COLABAWALLA,J.
DATE :- OCTOBER 14, 2022.
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P. C.:
1. The above Interim Application is filed seeking the following
reliefs:
"(a) that the Court Receiver, High Court, Bombay be forthwith
appointed as Receiver with full powers under Order XL Rule 1 of
the CPC of the following Demat Accounts held by Judgment
Debtor No.3 (also known as Puja D. Kapoor- NSDL ID :
103145733).
ACCOUNT TYPE ACCOUNT
DETAILS
NSDL Demat Punjab National Bank
A/c. DP ID: IN300020
Client ID :10729616
NSDL Demat IL&FS Securities Services Ltd.
A/c. DP ID:
IN302871
Client ID :20284797
CDSL Demat Motilal Oswal Financial Services
A/c. Ltd.
DP ID: 12010900
Client ID :10258007
CDSL Demat Ambit Capital Ltd. DP ID:
A/c. Pvt.
12047500
Client
ID :00006626
(a1) The Judgment Debtor No.3 to forthwith instruct the above
depositories participant in writings, that the Court Receiver High
Court Bombay shall hence forth operate the said Demat Accounts
with full power and authority to sell the Demat shares / liquidate
the mutual funds lying in credit of the said Demat Accounts and
more particularly set out in EXHIBIT - N hereto;
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(a2) The Court Receiver to take steps for sale of shares / mutual funds
lying to the credit to the said Demat accounts through E-Auction
and after sale of the Demat Shares / liquidation of Mutual funds,
file a provisional Statement of Account, within 7 days thereof and
deposit the net sale proceed to the credit of the above Execution
Application;
(b) If any of the said shares are held in Demat form then the Judgment
debtor to disclose on Affidavit the DEMAT Account numbers, full
particulars of Depository Participant (DP), DP ID Numbers,
Client ID Number and number of Demat Shares of each company;
(b1) that the Court Receiver, High Court, Bombay be forthwith be
appointed as Receiver with full powers under Order XL Rule 1 of
the CPC of the Demat Account to be opened by JD1, under orders
of this Hon'ble Court.
(b2) The Judgment Debtor No.1, on opening the Demat account, be
directed to instruct the depository participant that the Court
Receiver High Court Bombay shall operate the said Demat
Account with full powers and authority to sell / liquidate the
Demat shares lying to the credit of the said Demat Account to be
opened by JD1;
b3) The Court Receiver to take steps for sale of shares / mutual funds
to the credit to the said Demat account of JD-1 (upon being
opened) through E-Auction and after such sale of the Demat
Shares / liquidation of Mutual funds, file a provisional Statement
of Account, within 7 days and deposit the net sale proceed to the
credit of the above Execution Application;
c) That Defendant Nos.1 & 3 Judgment Debtors, be also directed to
disclose on Affidavit/s all other particulars of assets in the form
set out and marked as Exhibit - L hereto.
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(d) The Court Receiver be pleased to pay over the net sale proceeds to
the Applicant towards part satisfaction of the decreetal amount,
within 7 days from filing the provisional Statement of Account".
(d1) That pending the hearing and final disposal of the Execution
Application this Hon'ble Court be pleased to levy attachment on
the following Bank Accounts of the Judgment Debtors and further
the Court Receiver, High Court Bombay be appointed in respect of
the said Bank Accounts with direction to issue requisition to the
Branch Manager of the said Banks calling upon each of them to
forward / transmit the amount lying to the credit in the aforesaid
Bank Accounts within 3 days from the date of order, in favor of the
Court Receiver and to provide statement of Accounts from 1 st
January 2018 till date:
SR BANK (BRANCH) ACCOUNT NO. NAME OF
NO A/C.
HOLDER
1 IDBI Bank, Nana 16630100010050 Ganpati
Chowk Branch Enterprises
IFSC Code-
IBKL0000166
7/R, Kennedy Bridge,
Jyoti Studio Compound,
Grant Road (W), Grant
Road, Kennedy Bridge,
Jyoti Studio Compound,
Grant Road (W), Grant
Road, Mumbai,
Maharashtra 400007
2 IDBI Bank, Nana 0166102000012227 Ganpati
Chowk Branch Enterprises
IFSC Code-
IBKL0000166
7/R, Kennedy Bridge,
Jyoti Studio ompound,
Grant Road (W), Grant
Road, Kennedy Bridge,
Jyoti Studio Compound,
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Grant Road (W), Grant
Road, Mumbai,
Maharashtra 400007
3 ICICI Bank, 054601518922 Pravinchand
Mahalaxmi Branch Sehgal /
IFSC Code- Ganpati
ICIC0000546 Enterprises
Ion House,
Dr. E.
Moses Road,
Mahalaxmi,, Mumbai,
Maharashtra 400011
4 Union Bank, 317002010014685 Gaurav
Goregaon Branch, Pravinchand
IFSC Code: Sehgal
UBIN0531707, and
172/173, Shri Sadan, Praveenchan d
Shantiben Estate, Jay Sehgal
Prakash Nagar, Goregaon
(E),
Mumbai 400 063
5 ICICI Bank, SEEPZ 05440543619 Puja Sehgal
Branch
IFSC Code-
ICIC0000544
Ground Floor, Trans
Trade Centre, Seepz,
Midc, near Floral Deck
Plaza, Andheri East,
Mumbai, Maharashtra
400093
(d2) That the Court Receiver, High Court Bombay be ordered and
directed that amounts received from the above Banks be paid over
to PARSRAM H. BHOJWANI, Account No.04080100018059,
RTGS / NEFT IFSC Code BARB0NAPEAN, BANK OF
BARODA, NEPEAN SEA ROAD, MUMBAI- 400036, towards
part payment of the decreetal amount, within a period of 7 days
from the date of order;
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e) A mandatory order of injunction restraining the Judgement
Debtors from dealing with, disposing, alienating, encumbering,
transferring/transmitting or in any manner creating 3 rd party
rights in respect of any shares held by the JDs and more
particularly restraining Exhibit - E hereto;
f) Pending the Court Receiver taking charge of the Shares / Demat
Accounts the Judgment Debtor Nos.1 & 3 and/or their agents,
servants, representatives and/or any person acting through or
under them be and are hereby restrained by a mandatory order of
injunction from dealing with in any manner, disposing off,
selling, transferring, alienating, encumbering, parting with
possession, creating third party rights, title, interest and claim of
any nature whatsoever in respect of the any shares / mutual
funds held by the judgment Debtor No.1 set out in Exhibit - M or
the Demat Shares lying in Demat Accounts of JD3 and more
particularly set out in Exhibit - N hereto.
g) That the Court Receiver, High Court, Bombay be appointed to
(i) take physical possession of 2,06,500 shares held
by the Defendant No. 1 Judgment Debtor, in
Abhirav Infra & Relators Pvt. Ltd.
(ii) Certified copy of the share register of Abhirav
Infra & Relators Pvt. Ltd;
(iii) Obtain possession of all share certificates or
particulars of Demat share held by Judgment
Debtors and more particularly listed in Exhibit - E
annexed hereto is not deposited with the
Prothonotary & Sr. Master, High Court Bombay;
h) Judgment Debtor No.1 be directed to forthwith bring in the amount
of Rs.60,18,163/- belonging to him and lying in deposit with M/s. N.
P. Textile Mills to the credit of Execution Application;
i) The Judgment Debtor No.1 be directed to forthwith bring in the
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amount of Rs. 14,87,766.50 belonging to him and given as loan /
advance to 3rd parties to the credit of Execution Application;
j) That the Applicant be permitted to amend the column "J" of the
above Execution Application by adding necessary details regarding
the properties that may be disclosed by the Respondent or may be
identified and disclosed before the Court by the Applicant for
attachment and sale of the same and to carry out consequential
amendments, if any.
k) In the alternate the prayer clauses (g) & (h) the Garnishee Notice
under Order XXI Rule 46 and 46 A of CPC be issued to M/s. N. P.
Textile Mills having its office at 707 Auto Commerce House, Near
Kennedy Bridge, Nana Chowk, Grant Road West, Mumbai 400007,
to deposit within 7 days from date of order a sum of Rs.75,05,929.50
to the credit of Execution Application;
l) Ad-Interim/Interim order in terms of prayer clauses (a) to (i).
m) that cost of this Interim Application be provided for;
n) such further and other reliefs as the nature and the circumstances of
the case may be require".
2. Mr. Anuj Desai, Learned Counsel appearing on behalf of
Judgment Debtor No.3 on instruction states that JD-3 has
dematerialized shares / scrips as well as mutual funds which are held
by her in the following Demat Accounts:-
(i) Share Trading Account NSDL ID: 103145733
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and Linked Saving Bank Account
No.0168/CLSB/01/020127 maintained with Union
Bank of India (erstwhile Corporation Bank) having
branch at 6, R. S. Marg, Colaba, Mumbai - 400 005
IFSC :UBIN0901687 (previously CORP0000168) held
by Ms.Puja Sehgal aka Puja Kapoor (Defendant No.3
Judgment Debtor) and linked to NSDL Demat A/c
with share broker IL&FS Securities Ltd. bearing DP ID
IN302871 /Client ID 20284797 Rs.13,21,106.70/-
being the value of equity shares held in demat form as
on date.
(ii) Share Trading Account FINA098 and Linked Saving
Bank Account No. 0168/CLSB/01/020127 maintained
with Union Bank of India (erstwhile Corporation
Bank) having branch at 6, R. S. Marg, Colaba, Mumbai
- 400 005 IFSC : UBIN0901687 (previously
CORP0000168) held by Ms.Puja Sehgal aka Puja
Kapoor (Defendant No.3 Judgment Debtor) and
linked to CDSL Demat A/c with share broker Motilal
Oswal Financial Services Ltd. bearing DP ID
12010900 and Client ID 10258007 Rs.84,956.16 being
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the value of shares as on date.
(iii) Share Trading Account No.OIP080 and Linked Saving
Bank Account No. 20121278 maintained with Union
Bank of India Bank Colaba Branch having address
being next to Naval Petrol Pumpdr. Homi Bhabha
Road, Colaba, Mumbai - 400 005 held by Ms.Puja
Sehgal aka Puja Kapoor (Defendant No.3 Judgment
Debtor) and linked to CDSL Demat A/c with share
broker Ambit Capital Pvt. Ltd. bearing DP ID
12047500 and Client ID 00006626 RS-10000/- being
share value as on 12th October 2022.
(iv) Share Trading Account associated with Linked Saving
Bank Account No. 10802010006920 maintained with
Oriental Bank of Commerce Bank Fort Branch having
address at Jash Chambers, Ground Floor, Sir P. M.
Road, Fort, Mumbai - 1, Mumbai, Maharashtra
400001 held by Ms.Puja Sehgal aka Puja Kapoor
(Defendant No.3 Judgment Debtor) and linked to
NSDL Demat A/c with share broker Punjab National
Bank bearing DP ID IN300020 and Client ID
10729616.
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3. The Learned Counsel for JD-3, on instructions, states that
she does not hold any shares in physical form and that all shares held by
her in Public listed companies and mutual funds have been
dematerialized. The Learned counsel also states that save and except
the said demat accounts, JD-3 does not hold any other demat account.
Statement made by the JD-3 as above is accepted as an undertaking
given to the Court.
4. The Learned Counsel submits that the JD-3 will forthwith
give written instruction to the concerned share broker, with a copy to
the Applicant, to sell/liquidate all underlying share/scrips or redeem
mutual funds held in the above mentioned Demat accounts within 3
working days from the date of order. The said statement is accepted as
an undertaking to this Court.
5. The Learned Counsels for JD-3 states that upon the
shares/scrips being liquidated and the Mutual Funds being redeemed,
the contract note/redemption slip reflecting the sale shall be handed
over to the Applicant on the next day following the day the transaction
is completed.
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6. The JD-3, through her counsel, undertakes to this Court to
remit the sale proceeds credited to the respective linked saving Bank
Accounts mentioned above, by Demand Draft / Pay Order in favour of
the Applicant within 3 working days from the date of receipt of the sale
proceeds received in the respective linked saving Bank Accounts. This
remittance should be done without any deduction towards capital gain
tax, if any. The undertaking is hereby accepted.
7. Defendant No.1 Judgment Debtor has disclosed in his
Additional Affidavit in reply to this Interim Application that he only
holds shares in physical form (photo copies of which have been annexed
to the Additional Affidavit affirmed on 21 st December 2021 and filed in
IA No.2753 of 2020) which are tabulated below and does not hold any
demat account :
Sr. Name of Company No. of Equity Remarks
No. Shares
1. Finolex Pipes Ltd. 52 EQUITY
SHARES
2. Reliance Industries Ltd. 102 EQUITY
SHARES
3. Reliance Petrochemicals Ltd. 126 EQUITY
SHARES
4. Hindustan Oil Exploration 30 EQUITY
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Co. Ltd. SHARES
5. Sree Rayalaseema Alkalies & 100 EQUITY
Allied Chemicals Ltd. SHARES
6. Interlinked Exports Ltd. 5100 UNLISTED CO
8. The JD-1 undertakes to this Court that he shall within 20
days from date of this order open a demat account and dematerialize all
the equity shares, held in physical form and described in the table
above.
9. The JD-1 shall within 3 days from date of opening the
Demat account file an Affidavit in this court disclosing particulars of
depository participant, Demat Account Number/Client ID Number,
trading account number, name of broker, address of broker, linked
saving Bank Account Number alongwith name of the Bank and Branch.
10. The JD-1 shall within 3 days of dematerializing all physical
shares forward to the Applicant, a share holding statement.
11. The Learned Counsel submits that the JD-1, within 3
working days from the date of forwarding the shareholding statement to
the Applicant, will forthwith give written instruction to the concerned
share broker, with copy to the Applicant, to sell/liquidate all underlying
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share/scrips held in the above mentioned Demat accounts. The said
statement is accepted as an undertaking given to this Court.
12. The Learned Counsels for JD-1 states that upon the
shares/scrips being liquidated the contract notes reflecting the sale shall
be handed over to the Applicant on the next day following the day the
transaction is completed.
13. The JD-1, through his counsel, undertakes to this Court to
remit the sale proceeds credited to the respective linked saving Bank
Account by Demand Draft/Pay Order in favour of the Applicant within 3
working days from the date of receipt of the Sale Proceeds received in
the respective linked saving Bank Account. This remittance should be
done without any deduction towards capital gain tax, if any. The
undertaking is accepted.
14. The learned counsel for the Decree holder, applies for Show
Cause notice to be issued under Order XXI Rule 46 A to M/s. N. P.
Textile Mills, Proprietory concern of the Judgment Debtor no.1 herein,
to show cause as to why a sum of Rs.75,05,929.50 together with cost of
execution ought not to be deposited in this Court towards execution of
the decree and for appropriation towards payment of the decretal
amount.
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15. Heard the learned counsels for both parties and perused the
Affidavit jointly affirmed by JD-1 & JD-3 dated 11th September, 2020.
Judgment Debtors, by the said Affidavit, have filed copy of Income Tax
Returns of JD-1 for A. Y. 2019-20 (Page-192). The Balance Sheet
annexed to the ITR discloses that M/s. N. P. Textile Mills owes a debt in
the sum of Rs.75,05,929.50 to him as on date. Hence Garnishee Notice
be issued to the said M/s. N. P. Textile Mills having its office at 707,
Auto Commerce House, Near Kenedy Bridge, Nana Chowk, Grant Road,
Mumbai - to show cause as to why the said amount of Rs.79,05,929.50
should not be deposited in Court. The office is hereby directed to issue
Show Cause Notice under Order XXI Rule 46A of the CPC, 1908
returnable on 17th November 2022 calling upon M/s. N. P. Textile Mills
to Show Cause as to why they ought not to pay into Court the
aforestated amounts before the returnable date, by filing an Affidavit,
failing which the Proprietor of M/s. N. P. Textile Mills is required to
appear before this Court on 17th November 2022 at 10.30 a.m. in the
forenoon either in person or by an Advocate entitled to practice in this
court and show cause why the said M/s. N. P. Textile Mills should not
be ordered to do so. In default, an order for payment of the aforesaid
amount will be passed against the M/s. N. P. Textile Mills.
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16. Copy of Show Cause Notices be also served upon Judgment
Debtor No.1 as per Rule 345 of the Bombay High Court (Original Side)
Rules.
17. Pending the Execution Application, bank accounts
a) Account No.0166102000012227
IDBI Bank,
Nana Chowk Branch
IFSC Code-IBKL0000166
7/R, Kennedy Bridge, Jyoti Studio Compound,
Grant Road (W), Grant Road,
Mumbai, Maharashtra 400007
b) Account No.054601518922
ICICI Bank,
Mahalaxmi Branch
IFSC Code- ICIC0000546
Ion House, Dr. E. Moses Road,
Mahalaxmi, Mumbai, Maharashtra 400011
shall be operated in the usual course of business.
18. JD-1 to file Bank Statements of the aforesaid two Bank
Accounts for the period January 2022 to October 2022 on or before 17 th
November 2022. Bank statements of the said Bank accounts shall be
filed in court for the period November 2022 and December 2022 on or
before 16th January 2023. JD-1 shall thereafter file bank statements of
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the aforesaid bank accounts for a block of six months (January to June
and July to December) within 15 days from the close of each successive
period.
19. Liberty reserved in favour of the Applicant to apply for
transmitting amount lying to the credit of the said two Bank Accounts to
the credit of the Execution Application after completion of sale of
shares/scrips redemption of mutual funds in terms of this order.
20. In the circumstances, the Interim Application is disposed
off in above terms.
21. This order will be digitally signed by the Private
Secretary/Personal Assistant of this Court. All concerned will act on
production by fax or email of a digitally signed copy of this order.
( B. P. COLABAWALLA, J. )
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