Bombay High Court
Rajesh Thakkar S/O Prabhudas ... vs The Ld Court Receiver on 2 May, 2023
Bench: R. I. Chagla
2023:BHC-OS:4070
10-IA(L) 11203.2023 in EXA(L) 57.2007.doc
K.S. Jadhav
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INTERIM APPLICATION (L) NO.11203 OF 2023
IN
EXECUTION APPLICATION (L) NO.57 OF 2007
Rajesh Thakkar & Ors., ...Applicants/
Judgment Debtors
In the matter between :
Pratap G. Somaiya (since deceased) ...Claimant
Versus
Rajesh Thakkar & Ors., ...Respondent/
Judgment Creditors
And
The Court Receiver ...Respondent
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Mr. Swanand Ganoo i/b Mr. Shailesh Mishra, Advocate for
Applicants/Judgment Debtors.
Deep Jobanputra, Deputy Manager, Authorized Representative of
ARCIL (Respondent No.2).
Ms. Kiran Dubey, Advocate for Respondent No.3.
Mrs. Rekha Rane, IInd Assistant to the Court Receiver present.
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CORAM : R.I. CHAGLA J.
DATE : 2ND MAY, 2023.
ORDER :
1. By this Interim Application, the Applicants/Judgment
Debtors-Respondent Nos. 1, 3 & 4 have sought discharge of the Court
10-IA(L) 11203.2023 in EXA(L) 57.2007.doc
Receiver in respect of the properties described in Exhibit-C to the
Interim Application so that the Applicants may continue to be in
possession thereof in their own rights. The Execution Application had
sought execution of the Award passed against the Applicants and one
Satyajit P. Thakkar (since deceased) in favour of the Claimant (since
deceased). The amount awarded to the original Claimant is a sum of
Rs.50 Lakh alongwith interest. In the execution proceeding, Consent
Terms had been arrived at between the original Claimant and
Applicants which was taken on record by this Court on 4 th April,
2007. By these Consent Terms, the Court Receiver was appointed in
respect of the following properties :
(a) Office premises being No.89, Mittal Chambers,
Nariman Point, Mumbai 21.
(b) Godown No.9 situated at basement of Mittal
Chambers, Nariman Point, Mumbai - 400 021.
(c) The factory premises situated at 10-11, MAFCO
APM Yard, Vashi, Turbhe, Navi Mumbai.
2. The Applicants were appointed as agents of the Court
Receiver without royalty. The Court Receiver had taken only formal
10-IA(L) 11203.2023 in EXA(L) 57.2007.doc
possession of the aforementioned properties. Thereafter, Central
Bank of India intended to initiate SARFAESI proceedings and sought
setting aside the Consent Terms dated 4th April, 2007 by filing
Chamber Summons No.1268 of 2007 in respect of certain alleged
debts of the Judgment Debtors in the Award. The Chamber Summons
was dismissed by this Court by order dated 14th August, 2007 with
liberty to adopt proceedings against the Court Receiver, including
under the SARFAESI Act.
3. The Central Bank of India assigned its debts to Asset
Reconstruction Company (India) Ltd. (ARCIL) - Respondent No.2
who in turn by the Chamber Summons No.1577 of 2010 sought
impleadment which was permitted by this Court on 7th February,
2012. ARCIL thereafter filed Chamber Summons No.1990 of 2007
for seeking possession of the properties in respect of which the Court
Receiver was appointed. By order dated 24 th March, 2016 the Single
Judge of this Court directed the Court Receiver to handover
possession of the subject properties. The said order was challenged
in Appeal No.375 of 2017 filed by the original Claimant and Appeal
(L) No.245 of 2016 filed by the Judgment Debtors-Applicants herein.
The Appeals were disposed of by order dated 6 th October, 2016
10-IA(L) 11203.2023 in EXA(L) 57.2007.doc
passed by the Appellate Court directing the Court Receiver to hand
over possession only after the Chief Metropolitan Magistrate (CMM)
passed orders under the SARFAESI Act. However, no steps were taken
under Section 14 of the SARFAESI Act and hence, no order was
passed by the CMM.
4. There was an arrangement / transaction entered into
between ARCIL and Wonder Precious Stone Trading Private Limited.
Disputes arose between them in view of which Wonder Precious
Stone Trading Pvt. Ltd. filed Commercial Suit No.220 of 2019 against
ARCIL and Applicants herein. In these proceedings, Consent Terms
were filed before this Court on 17th January, 2023. Under Clause 5 of
the Consent Terms, the consideration of Rs. 15 crores was agreed to
be paid in full and final settlement of the dispute. The payments were
to be made in installments as provided in the Consent Terms. This
was duly complied with by the Applicants making payments to
Wonder Precious Stone Trading Private Limited on behalf of ARCIL.
No Due certificate was issued by ARCIL on 7th February, 2023.
5. On 5th April, 2023, the original Claimant's widow Sunita
Pratap Somaiya agreed to settle the matter relating to the subject
Award dated 4th April, 1997 by receiving payment of Rs.3.38 Crores
10-IA(L) 11203.2023 in EXA(L) 57.2007.doc
from the Judgment Debtors. It is noted that the original Claimant-
Pratap Somaiya passed away on 21st November, 2022 and Sunita
Pratap Somaiya was his only heir.
6. Thereafter, the amount of Rs.3.38 Crores has been paid by
the Applicants to Mrs. Sunita Somaiya in full and final settlement of
the subject Award and receipt has been issued by Mrs. Sunita Pratap
Somaiya on 5th April, 2023.
7. Accordingly, the Applicants have sought discharge of the
Court Receiver who is continuing in formal possession of the subject
properties.
8. Having considered the aforementioned facts including the
fact that the proceedings between the parties have been settled,
there is no purpose for the Court Receiver to continue in formal
possession of the subject properties described in Exhibit-C to the
Interim application. Further, there is no objection to the relief sought
for being granted. Hence, the following order is passed :
(i) The Court Receiver appointed by this Court as
Receiver in respect of the property described in Exhibit-C to
the Interim Application, is discharged without passing of
10-IA(L) 11203.2023 in EXA(L) 57.2007.doc
accounts and upon payment of costs, charges and expenses
to be borne by the Applicants.
(ii) The Interim Application is accordingly disposed of.
[R.I. CHAGLA J.]
