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2019 Supreme(Del) 488
IN THE HIGH COURT OF DELHI AT NEW DELHI
PRATHIBA M. SINGH, J.
Reliance Home Finance Limited – Appellant
Versus
Jagwati Jain and Others - Respondents
Civil Suit (Comm) No. 974 of 2018; Interlocutory Application No. 2408 of 2019, 2627 of 2019, 2628 of 2019, 3974 of 2019
Decided On : 06-05-2019
Anirudh Bhatia, Adv., Pankaj Jain, Adv., Randhir Jain & Dhananjai Jain, Adv., Abhas Kumar, Adv., Amit Mahajan, Adv., Olson Nair, Adv., Umesh Suri, Adv., Avinash Suri, Adv., Akhil Sacchar, Adv., Sunanda Tulsyan, Adv., Mayank Chawla, Adv.
The central legal point established in the judgment is the enforcement of contractual obligations, compliance with court orders, and consequences of non-payment of EMIs.
Headnote:
Finance - Recovery of Loan - OMP (I) 12/2017, Section 156(3) Cr.P.C - The court discussed the violation of status quo order, diversion of loan amount, and non-payment of EMIs by the defendants. The key legal provisions discussed include Order XXXIX Rule 1 & 2 CPC, Section 156(3) Cr.P.C, Order XII Rule 6 CPC, and Order VIII Rule 10 CPC.
Fact of the Case:
The Plaintiff filed a suit for recovery of a loan amount against multiple defendants who were involved in a sale and purchase transaction of a property. The Plaintiff alleged that the defendants violated a status quo order, diverted the loan amount, and failed to pay EMIs.
Finding of the Court:
The court found that the defendants were in violation of the status quo order, diverted the loan amount, and failed to pay EMIs. The court also noted that the defendants did not file written statements and were in collusion with each other.
Issues: Violation of status quo order, diversion of loan amount, non-payment of EMIs, and collusion among the defendants.
Ratio Decidendi: The court held that the Plaintiff made out a prima facie case and decreed the suit for the recovery of the loan amount along with interest. The court also disposed of pending applications and released a deposited sum to the Plaintiff.
Final Decision: The suit was decreed in favor of the Plaintiff for the recovery of the loan amount along with interest. Pending applications were disposed of, and a deposited sum was released to the Plaintiff.
Prathiba M. Singh, J.
Mr. Abhas Kumar, Ld. counsel submits that Mr. Pankaj Jain Defendant No.6 is absconding and he seeks discharge from this matter. Accordingly, Mr. Abhas Kumar is discharged.
2. The present suit for recovery of a sum of Rs. 2,04,00,000/- has been filed by the Plaintiff against Smt. Jagwati Jain Defendant No.1; Shri Satyaveer Singh Defendant No.2; Smt. Rajbati Defendant No.3; Shree Om Wires Private Limited Defendant No.5; Shri Pankaj Jain Defendant No.6 and Shri Mander Das Jain Defendant No.7. None of the Defendants except Defendant No.4 - M/s. Jain Foot Comforts Pvt. Ltd. have filed their written statements. The Plaintiff is a financing company, which has financed a sale and purchase transaction in respect of property being Plot admeasuring 199.68 square meters bearing Nos.426-431 situated at Gali No.8, Friends Colony, G. T. Road, Shahdara, New Delhi-110095 (hereinafter "suit property"). Defendant No.l - Smt. Jagwati Jain was the seller of the property and Defendant Nos. 2 and 3 were the purchasers of the property. The Defendant No. 2 and 3 were customers of the Plaintiff in whose favour the loan was sanctioned and money was deposited directly in the bank account of Defendant No.1 in Kotak Mahindra Bank.
3. It is the case of the Plaintiff that Smt. Jagwati Jain Defendant No.1 claiming to be the owner of the suit property had deposited the original title deeds of the said property including the original sale deed dated 17th February, 2015 with the Plaintiff company. After verification and other legal compliances, the Plaintiff sanctioned a sum of Rs.2.04 crores to Defendants No.2 and 3 vide sanction letter dated 31st March, 2018 to enable the said Defendants to purchase the suit property. After considering the original sale deed between Defendant No.1 and Defendants Nos. 2 & 3 - dated 17th July, 2015, the loan was disbursed to Smt. Jagwati Jain Defendant No.1 on behalf of Defendants No.2 and 3. The Defendant No.1, executed the sale deed in favour of Defendants No.2 and 3. The same was registered on 26th April, 2018 and the cheques were handed over by the Plaintiff to Defendant No.1. Defendant Nos. 2 and 3 were to pay the EMIs on or before 10th of every month. When Defendant Nos. 2 and 3 defaulted in payment of EMIs on 10th May, 2018, it established contact with Defendant No.2. At that stage, the Defendant No.2 informed the Plaintiff that there was a status quo order in respect of the suit property and hence the Sub-Registrar had refused to register the sale deed in favour of Defendant Nos. 2 and 3. The Plaintiff, thereafter, learnt that there was an order dated 9th March, 2018 which had been passed in OMP (I) 12/2017. The Plaintiff then moved an application in the said case seeking directions from Defendant No.1 to remit the sale consideration, but the said application was rejected as the Plaintiff was not a party to any arbitration agreement which was subject matter of the said petition. The present suit then came to be filed by the Plaintiff. Thus, the Plaintiff became aware of the fact that Defendant No.1 had sold the suit property in violation of the status quo order and had also accepted the sale consideration.
4. Under these circumstances, this Court had on 8th June, 2018 passed an order directing status quo in respect of the bank account maintained in Kotak Mahindra bank. The bank officials thereafter appeared and informed the Court that there were no sums in the said bank account and the balance was nil. On 8th June, 2018, this Court had passed an interim order in the following terms:
I.A. 8145/2018 (u/O XXXVIII Rule 5 read with Order XXXIX Rules 1 & 2 CPC)
7. Issue notice to the Defendants, returnable on the date fixed. Reply be filed within four weeks.
8. The Plaintiff is a financing company, which has financed a sale and purchase transaction in respect of property being Plot admeasuring 199.68 square meters bearing Nos.426 to 431 situated at Gali No.8, Friends Colony, G. T. Road, Shahdara, Ne
