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2023 Supreme(Del) 3445

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Citicorp International Limited – Appellant
Versus
Shiv-vani Oil & Gas Exploration Services Ltd. – Respondent
CO.Pet. 446 of 2013 & CO.Appls. 1053 of 2017, 128 of 2019, 382 of 2019, 95 of 2021, 617 of 2022, 629 of 2022, 17 of 2023, 131 of 2023, 223 of 2023, 267 of 2023, 268 of 2023, 283 of 2023, 521 of 2023 OLR 9 of 2022 & 61 of 2023
Decided On : 20-07-2023

Advocates appeared:
Mr. Dhruv Wadhwa, Advocate, for the Respondent.
Mr. Hashmat Nabi, Ms Divya Kaur and Mr. Kunal Arora, Advocate, for PNB.
Mr. Bheem Sain Jain, Advocate, for SBI.
Mr. Aishvary Vikram, Mr. Tarun Gulia, Mr. V.C. Shukla, Mr. Anantha Narayana M.G., Mr. Ajay Awasthi, Mr. Sushant Bajaj, Mr. Varun Gulia and Mr. Rohit Choudhary, Advocate, for Applicant in CO. APPL. 223/2023.
Ms Ruchi Sindhwani Sr Standing Counsel and Ms Megha Bharara, Advocate, for OL.
Mr. Jeewesh Prakash, Mr. Sandeep Agarwal, Mr. Sankalp Srivastava and Ms. Ritu Dubey, Advocates, for the Respondent.
Mr. Shobhit Narula, Ms. Priya Chhajer & Mr. Shaantanu Devansh, Advocates, for the Respondent.

The Official Liquidator needs to verify the ownership of the property and take steps to release it in favor of the landlord. The court may award costs for delay in handing over the property by the Official Liquidator.

Headnote:

Official Liquidator - Property Possession - Companies Act, 2013, Section 446 - The court directed the Official Liquidator to shift the company's records and moveables from the subject property to the registered office of the company and to hand over vacant possession to the landlord. The court also awarded costs to the landlord for the delay in handing over the property by the Official Liquidator.

Fact of the Case:

The applicant, Vikas Balhara, claimed to be the landlord of a property given to a company in liquidation. The property was sealed by the Official Liquidator, and the landlord sought possession and accrued rental amount.

Finding of the Court:

The court found that the documents of the landlord were verified by the Official Liquidator and were in order. It directed the Official Liquidator to shift the company's moveables from the property and hand over vacant possession to the landlord. The court also awarded costs to the landlord for the delay in handing over the property.

Issues: Possession of property by the Official Liquidator, verification of landlord's documents, delay in approaching the court by the landlord.

Ratio Decidendi: The Official Liquidator needs to verify the ownership of the property and take steps to release it in favor of the landlord. The court may award costs for delay in handing over the property by the Official Liquidator.

Final Decision: The court directed the Official Liquidator to shift the company's moveables from the property and hand over vacant possession to the landlord. Costs were awarded to the landlord for the delay in handing over the property.

JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

CO.APPL. 283/2023 (for delay)

2. This is an application for condonation of delay of 36 days in filing reply. For the reasons stated in the application, the delay is condoned. Application is disposed of.

CO.APPL. 521/2023 (for early hearing)

3. This is an application for early hearing of the application CA 725/2018. Early hearing is allowed. Application is disposed of.

CO.APPL. 223/2023

4. The present application has been filed by the Applicant- Vikas Balhara seeking the following prayers:

    "a. Direct the Official Liquidator to handover possession of the Subject Property i.e. Property No. A- 1/13, Freedom Fighter Colony, Neb Sarai, New Delhi- 110068;

    b. Direct the Official Liquidator to pay the accrued rental amount for the Subject Property i.e. Rs. 7,20,0001- (Rupees Seven Lakhs Twenty Thousand) along with interest at the rate of 18% per annum till the date of Legal Notice dated 16.01.2023.

    c. Direct the Official Liquidator to pay any further rent which may accrue for the Subject Property till the outcome of the present application;

    d. Pass such other and further orders this Hon'ble Court may deem fit in the facts and circumstances of the present case."

5. The applicant claims to be the landlord of property bearing no. No. A- 1/13, Freedom Fighter Colony, Neb Sarai, New Delhi-110068 (hereinafter `subject property'). The said Applicant had given the subject property to the Respondent- M/s Shiv-Vani Oil & Gas Exploration Services Limited, which is the company in liquidation vide rent agreement dated 17th September, 2016. The monthly rent was a sum of Rs.24,000/-. The company went into liquidation pursuant to orders dated 28th July, 2017 passed by this Court, and the property was sealed by the Official Liquidator (OL) on 16th September, 2021.

6. The case of the landlord is that despite repeated communications to the OL, the property is not being released, though the company has no right in respect of the subject property. The first such communication has been written by the Applicant on 2nd January, 2023. It is also submitted that the OL was well aware of the fact that the property does not belong to the company, as is evident from the OL's note when the sealing was effected.

7. On the last date of hearing, the OL was to file a report in respect of the said property. OLR 61/2023 has been received wherein in paragraph 4 to 6 the OLR has stated as under:

    "4. That in this regard it is submitted that, in compliance of order dated 10.04.2023, the representatives of the applicant/landlord appeared before this office on 26.04.2023. The original documents w.r.t. the said property were produced before this office and the same were verified and returned and a copy of the same was retained. The applicant had produced the Sale-Deed of the property and Leave & License agreement entered between Mr. Dayabhai Maneklal Patel and the Company (In Liqn.). Documents provided by the Applicant are in order with respect of his claim over the property. It is however submitted that there are moveable assets i.e. heavy machinery/parts of the rigs, of the Company (In Liqn.) lying on the said property. Copy of minutes dated 26.04.2023 are annexed as Annexure-A.

    5. That another application being CA No.233/2023 has been filed by Mr. Vikas Balhara, seeking directions against the Official Liquidator for handing over possession of property No. A-lIl3, Freedom Fighters7 Colony, Neb Sarai, New Delhi-110068, as also accrued rental amount alongwith interest.

    6. That in this regard, the applicant/landlord was requested to appear before this office for verification of the title documents w.r.t the said property. In response to the same, Authorized representative of the Applicant appeared before the office of the Official Liquidator on 12.95.2023 alongwith original documents and copy whereof was a1so provided. The documents produced were General Power of Attorney executed by Smt. Krisha

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