Enforcement of possession rights under the Companies Act 1956 and Company (Court) Rules, 1959.

MANMOHAN SINGH, J.

1. By this order, I propose to decide the application on behalf of Mr.Sanjeev Narula, Mr. Ranjeev Narula, Mrs. Sarita Narula, Mr. Ashok Kapoor, Mr. Virender Kapoor, Mrs. Veena Kapoor and Mrs. Vimi Kapoor, under Order 9 of the Company (Court) Rules, 1959 seeking directions to be issued to the Official Liquidator to comply with order dated 4th February, 2014 passed in C.A. No. 268/2014 by this Court for obtaining possession of the property of the applicant.

2. The applicants are the joint owners and landlords of the premises bearing No. 7A/40, W.E.A. Ajmal Khan Road, Karol Bagh, Delhi measuring approximately 7000 sq. ft. (built up area) comprising of basement + ground + first + second + third floors) (hereinafter refer to as “demised premises”). M/s. Lilliput Kidswear Limited through its authorized representative Mr. Anurag Tiwari, executed the Lease agreement dated 24th August, 2009 with the applicants to use and occupy the aforesaid premises for a period of nine (9) years against payment of monthly rent of Rs.10,57,000/- plus service tax on the terms and conditions incorporated in the said lease agreement duly registered with the office of the Sub-Registrar-III, Asaf Ali Road, New Delhi, bearing Registration No. 6070 in Additional Book No. 1, Vol. No. 13316 on pages 162 to 180. Out of the aforesaid term of 9 years, 24 months were to be the lock in period, wherein neither party was allowed to terminate the Lease agreement, except for the breach/default as mentioned in the said agreement.

3. M/s Lilliput failed to pay the rent as well as the service tax of the subject property since December 2011 till date which is in contravention of Clause-4A of the lease agreement. The applicants accordingly issued a demand correction notice dated 26.04.2012 to the M/s Lilliput calling upon to pay the rent as well as the service tax which was duly served upon it.

4. The applicants again issued a termination notice dated 12.05.2012, duly served upon M/s Lilliput, in terms of Clause-4D whereby the lease deed dated 24.08.2009 was terminated. The applicants vide legal notice dated 12.05.2012 also called upon M/s Lilliput to pay the rent @10,57,000/- from December 2011 till May 2012 alongwith the service tax of Rs. 27,43,594/- and for handing over the vacant peaceful possession of the property which M/s Lilliput failed to do so.

5. M/s Lilliput had also issued 7 (Seven) cheques for the purpose of the payment of the rent for the month of December, 2011 after the Tax deducted at source which was dishonoured by the applicants’ banker. M/s Lilliput has further issued 6 (six) cheques to the applicants for the payment of the Service Tax for the period from April 2010 till March, 2012 (24) months in part payment of the Service Tax which were also dishonoured for the want of sufficiency of fund.

6. Further in terms of the arbitration clause in the lease deed the applicants initiated the Arbitration proceedings for the recovery of their claim, which now accumulated to the tune of Rs. 8 Croroes (approx.). By order dated 4th March, 2013 passed by this Court, HMJ Shri S.K. Mahajan, (Retd.) was appointed as the sole arbitrator. Vide order dated 6th January, 2014 a provisional liquidator was appointed by this Court. This fact was apprised to the applicants in the proceedings before the Ld. Arbitrator on 15.01.2014 whereafter the proceedings was adjourned sine die vide order dated 15.01.2014, however with the observation to revive the same with the leave of this Hon’ble Court.

7. On 27th January, 2014 the applicants filed an Application under Rule 9 of Companies (Courts) Rules 1959 along with Section 446 of Companies Act bearing CA No 268 of 2014 in CP No 66 of 2012 for taking the possession of the demised premises and vide order dated 4th February, 2014 this Court had directed the Official Liquidator to take expeditious steps to take charge of Demised Premises, make an inventory of the assets lying in the said premises of the Applic