Bombay High Court
Magic Propertites Private Limited / ... vs Jagdish Bhagwandas Ahuja And Others on 5 August, 2025
Author: R.I. Chagla
Bench: R.I. Chagla
1-NMIS 13.2025 in IRN 1.2025 in INPT 33.2019.doc
Kavita S.J.
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
NOTICE OF MOTION NO.13 OF 2025
IN
IRN NO.1 OF 2025
IN
INSOLVENCY PETITION NO.33 of 2019
Magic Properties Private Limited ...Applicant
In the matter between :
Jagdish Bhagwandas Ahuja & Ors., ...Insolvents/
Judgment Debtors
Versus
Sandeepkumar Saraf ...Judgment Creditor
----------
Ms. C.J. Bhatt, Official Assignee a/w Mr. Subodh Patil, Deputy
Official Assignee & Mr. D.B. Iswalkar, 1 st Assistant, Official Assignee
present.
Mrs. Rekha Rane, Insolvency Registrar present.
Mr. Rohaan Cama a/w Mr. Amit Jajoo, Ms. Sanaya Patel, Ms. Richa
Phulwani i/b Trilegal for Applicant in NMIS 13/2025.
Ms. Preeti Gada a/w Ms. Vanshika Mahajan for the Petitioning
Creditor.
Mr. Girish Kedia a/w Krushang Kedia for the Supporting Creditor.
----------
CORAM : R.I. CHAGLA, J.
KAVITA DATED : 5TH AUGUST, 2025.
SUSHIL
JADHAV ORDER :
1. By this Notice of Motion, the Applicant who is an
1-NMIS 13.2025 in IRN 1.2025 in INPT 33.2019.doc
Intervener in the Insolvency proceeding has sought vacation of the
Order dated 5th September, 2023 passed by this Court in captioned
Rule Nisi for removal of office premises from the estate under
possession of the learned Official Assignee in the captioned
Insolvency proceeding.
2. Having heard the learned Counsel for the parties, the
Applicant has arrived at a workable arrangement with the Petitioning
Creditor to which the Official Assignee has no objection.
3. The Applicant is the owner of the office premises at the
basement, ground and first floor of Rajpipla Co-operative Housing
Society Limited ("Society"), Main Avenue, Opposite Standard
Chartered Bank, Santacruz (West), Mumbai - 400 054 ("Office
Premises"). Of the units constructed in the new building known as
Rajpipla, in terms of the Development Agreement, the following units
were allotted to Jagdish Ahuja - (1) Flat No.A-1 having 1657.21 sq.
ft.; (2) Flat No.C-2 having 889.59 sq.ft.
4. Admittedly, the total area of the aforementioned Office
Premises to be allotted to the Insolvent Jagdish Ahuja in the new
building under the Development Agreement dated 15 th October, 2005
1-NMIS 13.2025 in IRN 1.2025 in INPT 33.2019.doc
is 1657.21 + 889.59 sq.ft. i.e. 2546.80 sq.ft. (carpet area).
Accordingly, the Insolvent Jagdish Ahuja would be entitled to
2546.80 sq.ft. in the new building.
5. By way of Order dated 2 nd May, 2024 passed by this Court
in the captioned matter, it was agreed between all the parties that the
subject property, i.e. the office premises would be measured and
valued by a valuer appointed by the Court. Accordingly, M/s Shetgiri
and Associates was appointed to value and measure the office
premises. By its Report dated 17th August, 2024, M/s Shetgiri and
Associates has valued the market value of the office premises at INR
86,56,28,658 (Indian Rupees Eighty Six Crore Fifty Six Lakhs Twenty
Eight Thousand Six Hundred and Fifty Eight). The measurement of
the office premises by M/s Shetgiri and Associates is set out below:
Sr. Floor Measurement Reference
No. (carpet area) (Valuation Report)
(sq.mts.)
1 Ground Floor 196.01 Page 7
2 First Floor 381.13 Page 8
3 Basement Level 1 541.77 Page 9
4 Basement Level 2 357.5 Page 10
(26 nos. x 2.5 x 5.5)
Total (carpet area): 1476.41
Total (carpet area) x 15891.94
10.76 (sq.ft.)
1-NMIS 13.2025 in IRN 1.2025 in INPT 33.2019.doc
6. The total carpet area of the office premises measured by
M/s Shetgiri and Associatea is 15,891.94 sq.ft. Jagdish Ahuja's
entitlement in the new building is 2546.80 sq.ft., which is 16% of the
total carpet area of the office premises and has been worked out in
the following manner:
[2546.80/15,891.94 x 100=16% (rounded up)]
7. Accordingly, without prejudice to Applicant's rights and
contentions in Notice of Motion pending before this Court, it is
agreed between the Applicant and the Petitioning Creditor that the
office premises be sold at a public auction by the Official Assignee on
'as is where is' basis and the sale proceeds be distributed in the
following manner:
(i) 16% of the consideration received from the prospective
purchaser for the sale of the office premises on 'as is where is'
basis will be deposited with the Court to be disbursed to the
Official Assignee as part of the Insolvent's estate (being the
approximate area that should have been allotted to the
Applicant under the DA in lieu of the two flats which were not
constructed).
1-NMIS 13.2025 in IRN 1.2025 in INPT 33.2019.doc
(ii) The remaining 84% consideration will be paid directly by
the prospective purchaser to the Applicant.
8. The Official Assignee shall prepare a Schedule for carrying
out the auction sale of the office premises and the charges for the
auction sale shall be borne in the appropriate ratio of the Insolvent
and the Applicant's entitlement in the new building.
9. The Official Assignee shall submit Report on 19th August,
2025 when the matter shall be placed.
[R.I. CHAGLA, J.]
