Bombay High Court
Bajaj Auto Limited vs Executive Motors Private Limited And ... on 10 September, 2025
Author: Abhay Ahuja
Bench: Abhay Ahuja
33. IA 2213-23 in COMEX 37-23.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INTERIM APPLICATION NO. 2213 OF 2023
IN
COMMERCIAL EXECUTION APPLICATION NO. 37 OF 2023
Bajaj Auto Limited ...Applicant
V/s.
Executive Motors Pvt. Ltd. Pvt. Ltd. ...Respondent
And
Arun Chanda & Ors. ...Additional Respondents
Mr. Karl Tamboly with Ms. Swati Sutar i/b Dhru and Co. for the
Applicant/Award Holder.
Mr. Aseem Naphade i/b Mr. Ramiz Shaikh for the Additional
Respondents No. 1 and 2.
Mr. Arun Chanda-Additional Respondent No. 2 present.
CORAM : ABHAY AHUJA, J.
DATE : 10th SEPTEMBER, 2025
P.C. :
1. Pursuant to order dated 19th December, 2024, today when the
matter is called out Mr. Tamboly, learned Counsel appearing for the
Applicant / Award Holder submits that the oral examination under
Order XXI Rule 41 of the Code of Civil Procedure, 1908 of Mr. Arun
Chanda, Director of the Judgment Debtor/Additional Respondent No.1
can be continued.
2. Accordingly the learned Associate of this Court has administered
NIKITA
YOGESH oath to Mr. Arun Chanda, Director of the Judgment Debtor.
GADGIL
Date: 2025.09.11 Nikita Gadgil 1/7
33. IA 2213-23 in COMEX 37-23.doc
Name : Arun K. Chanda
Age : 52 years.
Occupation : Self employed
Address : Flat No. 9, 20/5, 2nd Floor, Guru Manek House,
RAK Road, Wadala-400 031.
Further Oral Examination of Mr. Arun Chanda, Director of the
Judgment Debtor/Additional Respondent No.1 under Order XXI Rule
41 of the Code of Civil Procedure, 1908.
Q.15. Since when was Executive Motors Pvt. Ltd. having the working
capital facility from ICICI Bank?
Ans. From May 2013.
Q.16. What were the working capital facility limits available to
Executive Motors Pvt. Ltd. in February, 2018?
Ans. ICICI Bank and Bajaj Auto Funding against bank guarantee.
Q.17. What was the fund limit available?
Ans. ICICI Bank had a fund limit of 2 crs and Bajaj Auto bank
guarantee was Rs. 60 lacs. The limits used to vary. I do not know off
hand the limit but I have the figure of outstanding amounts for 31 st
March, 2018. Witness volunteers-The limits used to change depending
upon the season; if the season was festive season then the limits would
increase and if it was off season, the limits were reduced.
33. IA 2213-23 in COMEX 37-23.doc
Q.18. Therefore, would it be correct to say that you had facilities in
place to fund the purchase of vehicles from Bajaj Auto?
Ans. Yes, but it was not a very reliable source, because the limits used
to change,without any discussions with the dealers.
Q.19. Would it be correct to say that Executive Motors Pvt. Ltd. would
know on a daily basis what were the limits?
Ans. Yes.
Q.20. Do you therefore agree that Executive Motors Pvt. Ltd. was
aware on a daily basis as to what were the limits available to it at the
time of placing orders with Bajaj Auto?
Ans. Yes.
Q.21. Is it your case that after February, 2018, Executive Motors Pvt.
Ltd. over exposed itself when purchasing and placing orders with Bajaj
Auto over and above the available facility limits?
Ans. No.
Q.22. In view of your previous answer, I put it to you that Executive
Motors Pvt. Ltd. had access to funds through available facility limits at
the time of placing orders with Bajaj Auto after February, 2018?
Ans. Yes.
33. IA 2213-23 in COMEX 37-23.doc
Q.23. I put it to you that despite having access to funds Executive
Motors Pvt. Ltd. deliberately did not pay Bajaj Auto for orders placed
and vehicles supplied to the Executive Motors Pvt. Ltd. ?
Ans. No.
(The witness is shown the independent Auditor's report dated 30 th
September, 2019 by Y. L. J. AND Co. which has been exhibited to the
reply at pages 147 to 158).
Q.24. Are Y.L.J AND Co. auditors of Executive Motors Pvt. Ltd. co. pvt
ltd.?
Ans. Yes.
Q.25. Then can you explain why on page 153 in the opening the said
report is to the members of Veritas Infratech Private Limited?
Ans. The Chartered Accountant came to the Court and gave
explanation and since the same is more than 2 years old, I will need to
consider the same. Witness volunteers- I do not have any explanation.
It is a clerical error or a misprint.
Q.26. Do you agree that the same alleged clerical error / misprint
appears in the independent auditors annexure for the next year?
Ans. It even exists for the next year.
33. IA 2213-23 in COMEX 37-23.doc
Q.27. Did you ever on behalf of Executive Motors Pvt. Ltd. asked Y. L.
J. AND Co. to rectify this alleged error?
Ans. This error had been brought out in this Court by the learned
Counsel for the Applicant/ Judgment Debtor in the course of arguments
two years back and before this I was unaware of it.
Q.28. Do you agree that on the date of the Chartered Accountant's
report that is as of 31st March, 2019, the Directors of Executive Motors
Pvt. Ltd. stood disqualified in the records of the ROC?
Ans. Yes. Witness volunteers- the list of disqualification of the directors
was uploaded on the website of the MCA. I think in the first quarter of
2020 and the date of disqualification was November, 2018, which I
think I remember correctly. Also as per advice that was given to me,
the disqualification just prohibits taking up directorship in another
companies or being reappointed as a director in this company and in
these years there was no disqualification and I was entitled to sign
various documents.
(witness is shown Exhibit-C at page 438 of the rejoinder viz copy of the
relevant pages of the notification dated 3rd February, 2020).
Q.29. Do you now agree that the notification setting out the list of
33. IA 2213-23 in COMEX 37-23.doc
disqualified directors of various companies was notified on 3 rd February,
2020?
Ans. Yes. It is there and that is why I wanted to check and therefore, I
gave a qualified reply. The November, 2018 date is correct as the
disqualification was effective from that date.
(witness is shown the independent auditor's report dated 30 th
December, 2020 of Y. L. J. AND Co. from pages 169 to 179 of the
affidavit in reply).
Q.30. Can you assign any reason why this report dated 30 th December,
2020 also mentions at page 172 that none of the directors are
disqualified as on 31st March, 2019?
Ans. I have already replied. It does not apply to us as we were not up
for reappointment.
Q.31. Can you assign any reason as to why the board of director's
report as required under Section 134(3) of the Companies Act, 2013
and cash flow statement as per Section 2(40) of the Companies Act,
2013 has not been filed with any of the accounts disclosed by the
company?
33. IA 2213-23 in COMEX 37-23.doc
Ans. As per my Chartered Accountant since there was a delay in
uploading the documents which would entail heavy penalty, my
Chartered Accountant said to wait.
3. Since it is already 12.30 p.m. and there are more than 40 other
matters on the board today, the oral examination of Mr. Arun Chanda,
Director of the original Respondent, will have to be continued on
another date.
4. Mr. Arun Chanda, is discharged for the day.
5. For the oral examination of Mr. Arun Chanda to continue, list on
8th October, 2025.
6. Let Mr. Arun Chanda, Director of the Judgment Debtor remain
present on the next date as well along with necessary documents and
instructions with respect to the properties of the Judgment Debtor and
the means of satisfying the decree, for the purpose of continuing his
oral examination under Order XXI Rule 41 of the Code of Civil
Procedure, 1908.
(ABHAY AHUJA, J.)
