IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmeet Pritam Singh Arora, J.
Ashok H Advani - Appellant
Versus
Mukesh Kumar Singh - Respondent
CM(M) 1178 of 2018 & CM APPL. 40260 of 2018
Decided On : 13-12-2023
Industrial Award - Execution Proceedings - Order XXI Rule 41 of CPC - [Order XXI Rule 30, Order XXI Rule 41 of CPC] - The court discussed the Industrial Award dated 12.05.2004, execution proceedings, and the orders passed by the Executing Court. The judgment highlighted the legal provisions of Order XXI Rule 41 of CPC and its interpretation, emphasizing that the directions to the directors to furnish details of their personal properties do not follow as a matter of course in every case of execution of a money decree against a company. The court set aside the orders directing the directors to file affidavits of their personal assets, citing authoritative and binding judgments overruling the previous decisions.
Fact of the Case:
The case involved execution proceedings seeking implementation of an Industrial Award passed in favor of workmen of a company. The Respondent and 51 other employees sought payment of wages as per the Industrial Award, and the Executing Court issued various directions to the directors of the company to disclose their personal assets.
Finding of the Court:
The court found that the orders directing the directors to file affidavits of their personal assets were not sustainable, as they were based on a judgment that had been overruled by a Division Bench of the Court. The court directed the pending applications to be decided in accordance with the law and allowed the petition, while also upholding the payment of costs imposed by the Executing Court.
Issues: The issues revolved around the compliance with the orders of the Executing Court, the necessity of directors to disclose their personal assets, and the satisfaction of the Industrial Award.
Ratio Decidendi: The court's decision was based on the overruling of the previous judgment by a Division Bench of the Court, which clarified that the directions to the directors to furnish details of their personal properties do not follow as a matter of course in every case of execution of a money decree against a company.
Final Decision: The petition was allowed, and the court directed the Executing Court to proceed to decide the pending applications in accordance with the law. The court also upheld the payment of costs imposed by the Executing Court and vacated the interim order.
JUDGMENT
MANMEET PRITAM SINGH ARORA, J.
1. The present petition filed under Article 227 of the Constitution of India impugns the order dated 08.05.2018 and 17.07.2018 passed by the Additional District Judge-07, South-East District, Saket Courts, New Delhi in Execution Petition No. 46/2016, titled as Mukesh Kumar Singh vs. Management of Business India Television International Ltd. & Another (`Executing Court').
1.1. Vide impugned order dated 08.05.2018 the Executing Court directed the Petitioner herein:
a. To file the details of the bank account of the Petitioner herein for the period of three years (3) prior to passing of the Industrial Award till the date of passing the said order.
b. To file the details of the immovable and movable property held by him (i.e., the Petitioner herein) three (3) years prior to the date of passing of Industrial Award till the date of passing the said order.
c. To file his (i.e., the Petitioner herein) Income Tax Returns (`ITR's') from the assessment year 2002-2003 till 2017-2018.
1.2. Vide impugned order dated 17.07.2018 the Executing Court imposed costs of Rs. 1,00,000/- upon the Petitioner herein for non-compliance of the aforesaid order dated 08.05.2018; and thereafter a final opportunity was given to the Petitioner to comply with the same.
1.3. The Respondent is the original Decree Holder of the Industrial Award passed against the Business India Television International Ltd (`Company' or `Judgment Debtor'). The Petitioner herein is the director of the said Company.
2. Brief facts leading to filing of present petition are as under:
2.1. The aforesaid execution petition seeks implementation of the award passed by the Industrial Tribunal - II, Karkardooma Courts, Delhi on 12.05.2004 (`Industrial Award') in favour of the workmen of the Company declaring that the lockout imposed by the Company after 14.02.2000 was illegal and unjustified. It was further directed by the Industrial Tribunal that all the workmen of the Company are entitled to the wages w.e.f. 14.02.2000 till date or the date from which the resignation of the concerned workmen became enforceable.
2.2. On 09.08.2014 execution proceedings were initiated by the Respondent i.e., Decree Holder and 51 other employees against the Judgment Debtor seeking execution of the Industrial Award.
2.3. On 12.03.2015 an order of warrants of attachment were issued against the immovable property of the Company bearing no. 268, Masjid Moth, Uday Park, New Delhi (`Masjid Moth property'). However, the warrants of attachment could not be executed as the property stood mortgage with Kotak Mahindra Bank Ltd; due to which the Respondent herein filed an application under Order XXI Rule 30 of Civil Procedure Code, 1908 (`CPC') before the Executing Court seeking warrants of arrest and detention of the Directors of the Company.
2.4. Thereafter, on 31.08.2015, the Executing Court directed the Judgment Debtor to file an affidavit disclosing the assets of the Company. In compliance of the same, after the affidavit dated 26.09.2015 was filed by the Petitioner herein, the Decree Holder moved an application under Order XXI Rule 41 of CPC on 16.10.2015 seeking a direction to the Directors of the company to (i) provide bank account details/annual returns of the other subsidiary/ holding companies; and (ii) their personal bank account details from the year 1994 till the date of filing the said application.
2.5. In pursuance to the said application, on 25.05.2016, the Executing Court directed the Directors of the Company to file their personal affidavit containing particulars enlisted at serial nos. (i) to (xii) of the said order. In compliance of the same, an affidavit dated 18.10.2016 was filed by the Petitioner herein, however, on 23.09.2017 the Executing Court directed the Petitioner herein to comply with the direction enlisted at para (iv) of the order dated 25.05.2016 as the said affidavit as per the Executing Court did not comply with the same. Thereafter, on the next dates of hea
The main legal point established in the judgment is that the directions to the directors to furnish details of their personal properties do not follow as a matter of course in every case of execution....
Order XXI Rule 37 of CPC provides that when an application is filed in execution proceedings for payment of money seeking arrest and civil imprisonment of judgment debtor, court would issue a notice ....
A court cannot independently impose asset disclosure requirements during execution proceedings without a request from decree holders, ensuring compliance with jurisdictional provisions and protecting....
Court's direction on mandatory disclosure of judgment-debtor's assets, incomes, and expenditures to expedite execution proceedings.
Wilful non-compliance with court orders justifies the issuance of arrest warrants against a judgment debtor.
An executing court can only entertain execution petitions where the judgment debtors' assets are located within its jurisdiction; non-compliance with court orders negates claims of lack of jurisdicti....
The court clarified that SDMs cannot enforce a specific affidavit format for asset disclosure in execution proceedings, overruling prior mandates that conflicted with CPC provisions.
Directors of a company cannot be held personally liable for the company's debts unless explicitly stated in the decree.
Point of Law : Procedure for implementation of the awards - If any modification is required in Scheme formulated by this Court, Implementation Committee shall be empowered to do needful.
Point of Law : Even on merits, it is not possible to hold that the respondent has made out a clear case for dismissal of the present execution petition, for want of territorial jurisdiction on the gr....
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