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SUPREME COURT OF INDIA
J. CHELAMESWAR, ABHAY MANOHAR SAPRE, JJ.
The Committee-GFIL – Petitioner
Versus
Libra Buildtech Private Ltd. & Ors. – Applicants/Respondents
I.A. Nos. 7-8 & 9-10 OF 2015 IN SLP © Nos. 23886-23887/2012
Decided on : 30-09-2015
Applicants-purchasers performing their part of contract – Seller GFIL Committee failing to place the applicants in possession of the properties – Purpose of transaction frustrated – Supreme Court cancelling the transaction – Directing GFIL Committee to refund entire sale consideration with interest to applicants – Court also permitting applicants to approach State Government to claim refund of stamp duty – State rejecting refund on ground of limitation – The entire transaction being Court monitored, no party could take any step on its own – Therefore after the order of Supreme Court, there was no question of limitation – A person cannot be penalized for no fault of his and the act of the court would cause no prejudice to any of his right – Actus curiae neminem gravabit – An Act of the Court shall prejudice no man – Even otherwise, State could refund stamp duty under sections 49(d)(2) and 50(3). (Para 32, 36, 37, 38, 43)
(1977) 2 SCC 835; (1987) 4 SCC 398 – Relied upon
AIR 1954 Bombay 50 – Cited with approval
Facts of the case:
Golden Forest India Limited (GFIL) went into liquidation.
GFIL Committee constituted by Supreme Court to sell the assets and discharge liabilities.
Sale of assets was finalized in favour of five parties who deposited the required sale considerations. Sale deeds were executed and even registered. However, possession could not be handed over and the sale was frustrated. Sale consideration was refunded in full.
Purchasers applied for refund of stamp duty but the State refused on ground of limitation.
Finding of the Court:
State should not, in such cases, invoke technicalities.
Result: I.A. Nos. 9 and 10 allowed.
Judgment :
Abhay Manohar Sapre, J.
1. In the light of the order dated 22.01.2015 already passed by this Court in I.A. Nos. 7-8 as mentioned in the Office Report dated 11.02.2015, no further order on these IAs. is required.
2. I.A. Nos. 9 and 10 – these two applications are filed by the applicants/respondent Nos.1-4. -Libra Buildtech Private Ltd. & Ors. (hereinafter referred to as ‘the applicants’) for direction by this Court to State of Punjab and S.D.M. Dera Bassi to refund the full amount of stamp duty to the applicants.
3. In order to appreciate the nature of controversy involved and the direction sought for refund of the amount paid by the applicants for purchase of stamp duty for execution of sale deeds in relation to properties in question, it is necessary to set out the undisputed factual background of the case infra.
4. Golden Forest India Limited (GFIL), (hereinafter referred to as ‘the company’) was a company incorporated under the Companies Act on 23.02.1987. On 06.03.1987, it was granted certificate of commencement of business. This company went into liquidation. The creditors of the company, therefore, filed various claim petitions against the company in various courts across the country. This Court therefore, on an application filed, transferred all the cases pending in various courts in the country to this Court.
5. This Court thereafter constituted a Committee, namely, GFIL Committee (Petitioner in S.L.P.(C) Nos. 23886-87 of 2012) to take over the assets of the company and dispose of the same for paying the debts of various investors/creditors.
6. By order dated 05.09.2006 in I.A. Nos.28, 36. etc. in T.C.(C) No. 2 of 2004 etc. this Court directed the GFIL Committee to sell the properties of the company. In compliance of the above said order, the GFIL Committee published an advertisement for the auction of certain properties of the company. The applicants herein participated in the auction and submitted their bid to purchase the properties advertised for sale. After auction, the applicants herein were declared as successful bidders in respect of five properties namely –
(a) Property No.1 (Central Office Building Village Jharmari, Tehsil Dera Bassi, bid by Libra Buildtech Pvt. Ltd.) for Rs.34 crores,
(b) Property No.2 (Hotel behind Central office at village Jharmari, bid by Saffron Town Planners Pvt. Ltd.) for Rs.16.25 crores.
(c) Property No.3 (Farm lands & Buildings behind semi-constructed Hotel at village Jharmari, bid by Swans Town Planners Pvt. Ltd.) for Rs.15.25 crores.
(d) Property No. 7 (10 Residential and 2 Office buildings at village Jarout by Aries Buildwell Pvt. Ltd.) for Rs.9.05 crores.
(e) Property No.9 (Farm Lands at village Kurali, bid by Flamingo Propbuild Pvt. Ltd.) for Rs.27.25 crores.
As per auction conditions, the applicants immediately deposited 25% of the bid amount, i.e., Rs.25.45 crores with the GFIL Committee on 06.12.2006.
7. By order dated 14.05.2007, this Court directed the GFIL Committee to invest the bid amount received by them in FDRs till the sale in favour of the applicants was confirmed.
8. On 29.07.2009, this Court confirmed the sale of the properties in favour of the then Director of the applicant-Companies and granted them six months’ time to pay the balance amount of 75% towards the sale price. However, the said time to pay the balance amount was further extended by 14 days vide order dated 29.01.2010. This Court also directed that on deposit of the full amount, the GFIL Committee would ensure that the properties in question are put in possession of the purchasers (applicants).
9. As per the direction of this Court, the applicant-Companies accordingly deposited the balance 75% of the bid amount on 10.02.2010 with the GFIL Committee, i.e. (Rs.101.80 crores).
10. Thereafter, this Court transferred the pending cases to the Delhi High Court for further action.
11. In pursuance thereof, the Division Bench of the High Court of Delhi by order dated 03.08.2011 in W.P.(C) No. 1399 of 2010 directed the
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