Point of Law: Vendee shall have no right to transfer by way of gift, mortgage or by transfer of shares other than original promoter declared at time of allotment/ agreement/conveyance deed.

JUDGMENT :

Chamber Appeal No.1 of 2022

This Chamber Appeal has been filed by respondents No.1 and 2 under Rule 5 of Chapter II of High Court of Himachal Pradesh (Original Side) Rules, 1997 (hereinafter referred to as ‘Original Side Rules, 1997’), for setting aside order of accepting the solvent security bond, passed by Registrar (Judicial) on 28.08.2020, and also for direction to the petitioners to deposit entire awarded amount in the Registry of this Court.

2. Petitioners invoking provisions of Section 34 of Arbitration and Conciliation Act (hereinafter referred to as ‘Arbitration Act’) have filed main petition for quashing and setting aside Arbitral Award dated 14.11.2019 passed by the Sole Arbitrator.

3. Vide order dated 06.03.2020, passed in OMP No.84 of 2020, execution and operation of impugned Award was stayed, subject to deposit of entire awarded amount in the Registry of this Court alongwith up-to-date interest within six weeks from passing the order, or subject to furnishing solvent security bond, equivalent to the aforesaid sum or of a bank guarantee, equivalent to aforesaid sum within the aforesaid period in the Registry of this Court.

4. Petitioners could not deposit entire amount or furnish solvent security within time, however, after due date, solvent security bond was furnished by/on behalf of the petitioners, with extension of time, vide order dated 16.07.2020 passed in OMP No.156 of 2020.

5. Solvent security bond furnished by or on behalf of the petitioners was directed to be placed before Registrar (Judicial) with a direction to him to accept or reject the same after satisfying the validity and viability of security bond with further order that in case solvent security bond was not found viable or acceptable then petitioners had to furnish another security bond or bank guarantee on or before 17.08.2020, failing which they had to deposit entire amount alongwith up-to-date interest in the Registry of this Court on or before 31.08.2020.

6. Vide order dated 25.08.2020, Registrar (Judicial) was permitted to take up the matter on 28.08.2020 for assessing viability and solvency of security bond and bank guarantee, in terms of order dated 16.07.2020 read with order dated 06.03.2020.

7. Vide order dated 28.08.2020 Registrar (Judicial) accepted the security bond furnished and executed on behalf of the petitioners by Jitender Dua.

8. Respondents No.1 and 2 had disputed validity and legality of security bond and, therefore, they filed an application OMP No.338 of 2020 by raising objection to acceptance of security bond by Registrar (Judicial) furnished on affidavit of Jitender Dua on behalf of the petitioners. The said application was dismissed with liberty to applicants-respondents No.1 and 2 to avail appropriate remedy, in accordance with law, if advised so, in view of provisions of Rule 5 of High Court of H.P. (Original Side) Rules, 1997. Thereafter, present appeal has been preferred by applicants-respondents No.1 and 2.

9. On behalf of petitioners, two properties have been furnished as solvent security bonds.

10. First property is Conveyance Deed registered on 18. 10.2018 between Himachal Pradesh State Industrial Development Corporation Limited (HPSIDC) and M/s Shri Sai Balaji Pharmatech Private Limited, through its Director Jitender Dua.

11. Second property is land measuring 11 Biswa 5 Biswansi, located in Village Billanwali Gujran, Tehsil Baddi, District Solan, H.P., with title report of one Ravinder Singh Thakur, Advocate.

12. Valuation Reports with respect to afore two properties obtained from registered Valuator/Valuer namely Anil Vats Associates, Panchkula, have also been placed on record indicating that current value of two properties was about 6 Crores 14 lacs.

13. Registrar (Judicial) vide order dated 28.08.2020 had accepted these properties as solvent security bond on the basis of affidavit filed by Jitender Dua, after rejecting the objections raised by/on behalf of applicants-respondents No.1 and 2.

14. Learned counsel f