Brajendra Khandelwal vs M/S Rajendra Iron Mart & Others
2018 Latest Caselaw 7418 Del

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*      IN THE HIGH COURT OF DELHI AT NEW DELHI
                                       Date of decision: 17th December, 2018
+                          O.M.P. 1182/2012
       BRAJENDRA KHANDELWAL                   ..... Petitioner
                   Through: Mr. Rajeev Ranjan Pathak and Mr.
                            P.K.      Tripathi,         Advocates.
                            (M:9999033411)

                           versus

       M/S RAJENDRA IRON MART & OTHERS       ..... Respondents
                     Through: Mr. Akshay Makhija and Ms. Seerat
                              Deep Singh, Advocates for R-1.
                              (M:9810079901)
                              Mr. Aly Mirza, Advocate for R-2.
                              (M:9899720944)

       CORAM:
       JUSTICE PRATHIBA M. SINGH
Prathiba M. Singh, J. (Oral)

CCP (O) 44/2013, CRL.M.A. 11937/2015 in O.M.P. 1182/2012

1. The present Section 9 petition was filed seeking interim orders to safeguard property bearing No.179, Block-A, Okhla Industrial Area, Phase- I, Delhi (`property'). The disputes relate to the partners of the firm `Rajendra Iron Mart'. Admittedly, the matter is pending adjudication before an arbitral tribunal under the aegis of the Delhi International Arbitration Centre.

2. When the present petition was listed on 18th December 2012, this Court had granted an interim order in the following terms:

"Till the next date of hearing the Respondents are restrained from entering into negotiation regarding, or

dealing with, or selling, or transferring, or encumbering in any manner, plot No. 179, Block-A, Okhla Industrial Area, Phase-I, Delhi."

The allegation is that during the operation of the above interim order, one of the partners, Mr. Mahesh Chand Khandelwal entered into an Agreement to Sell in respect of the property, with a third party. The factum of

3. The CCP and the criminal miscellaneous application had come to be filed in these circumstances. Vide order dated 25th May, 2015, it was recorded that the third party namely, Arora Buildwell Pvt. Ltd. had agreed to return the property back to the firm, upon being paid the amount of Rs.2.87 crores, thereby resulting in cancellation of agreement to sell dated 4th April, 2013. It is submitted by Ld. Counsel that the process of payment to Arora Buildwell and the cancellation of the agreement to sell, has been undertaken by Mr. Khandelwal. The agreement to sell with Arora Buildwell Pvt. Ltd. now stands cancelled.

4. On 19th August, 2015, the DDA was directed to deposit the title deeds of the property in Court. On 25th October, 2016, this Court had modified the direction issued on 19th August, 2015 which is as under: -

"7. DDA has since filed a status report explaining that on account of change of the constitution of the firm, M/s. Rajendra Iron Mart, the said firm had to but was unable to pay the „unearned increase‟ charges to DDA. It is stated that the firm has not come forward to complete the formalities despite a letter dated 9th February, 2016 issued to it by DDA. It is further stated that the firm not having complied with DDA‟s request, there is no question of permitting the firm to deal with the said property at this stage and therefore, the documents in relation to the property shall remain with DDA.

8. In view of the above clarification, the Court modifies the direction issued by it on 19th August 2015 and directs the DDA not to permit any change by way of mutation in respect of the abovesaid property without prior permission of the Court."

5. There is no doubt that Shri Mahesh Chand Khandelwal had entered into the agreement to sell in complete violation of the directions passed by this Court. He is, therefore, guilty of contempt. However, considering the circumstances i.e. his age, as also the fact that the property has now been secured and that he had to sell his own property to pay back the amount to Arora Buildwell Pvt. Ltd., a fine of Rs.5 lakh is imposed. The unconditional apologies tendered by Shri Mahesh Chand Khandelwal and Smt. Sneh Lata Khandelwal are accepted by this Court. The contempt notice is discharged.

6. In view of the orders passed in CCP 44/2013, this Court does not find good reason to proceed with CRL.M.A. 11937/2015. The I.A. is accordingly disposed of in terms of the order in CCP 44/2013.

7. If the amount of Rs.5 lakh is not deposited within a period of 6 months with the Prime Minister's Relief Fund, Shri Mahesh Chand Khandelwal would be liable to undergo for a civil imprisonment for a period of one month. A copy of the receipt confirming the deposit be filed on or before 10th July 2019, with the Registry. List on 15th July 2019, for reporting compliance.

PRATHIBA M. SINGH JUDGE DECEMBER 17, 2018 Rekha