2024:BHC-OS:18047-DB IN THE HIGH COURT OF JUDICATURE AT BOMBAY Digitally signed by ANANT A KN RIA SN HT NA ORDINARY ORIGINAL CIVIL JURISDICTION KRISHNA NAIK NAIK Date:

2024.10.26

14:51:35 +0530 WRIT PETITION NO. 3248 OF 2024 Lemon Seeds Hospitality Pvt. Ltd.

A Company duly registered and incorporated under the Companies Act, 1956, having its registered office at AB-16, Community Centre, Safdarjung Enclave, New Delhi – 110029 ....Petitioner Versus

1. Union Of India (through the Ministry of Finance, Aaykar Bhavan, Mumbai)

2. State of Maharashtra (through the Secretary, Home Department, Government of Maharashtra, Mantrayala, Mumbai)

3. The Deputy Collector & Competent Authority, National Spot Exchange Ltd., (NSEL), having his office at 1^st Floor, D. D. Building, Old Custom House, Mumbai – 400001

4. The Enforcement Directorate Zonal Office, Kaise-i-Hind Building, 4^th Floor, Currimbhoy Road, Ballard Estate, Mumbai – 400001

5. The Senior Inspector of Police Economic Offices Wing, Unit-V, Crime Branch, Mumbai

6. Quikr Realty Limited Ramon House, 169, Backbay Raclamation, H. T. Parekh Marg Churchgate, Mumbai – 400001 ....Respondents Adv. Subhash Jha a/w Adv. Siddharth Jha a/w Adv. Neha Balani, Adv. Sumeet Upadhaya, Adv. Ashish Saxena, Adv. Mukta Kothari, Adv. Deepesh Shahani, Adv.

Apeksha Sharma i/b LAW GLOBAL for the Petitioner. Smt. Jyoti Chavan, Addl. GP for the Respondent-State Mr. H.S.Venegavkar a/w Adv. Kamar Ali Shaikh for the Respondent No.4-ED CORAM : DEVENDRA KUMAR UPADHYAYA, CJ. &

M. M. SATHAYE, JJ.

RESERVED ON : 8 OCTOBER 2024 PRONOUNCED ON : 25 OCTOBER 2024 JUDGEMENT (Per M. M. SATHAYE, J):

1. Heard the learned Counsel for the appearing parties. Perused the record.

2. By this Petition under Article 226 of the Constitution of India, the Petitioner - a private limited company registered and incorporated under the Companies Act, 1956, is praying for quashing and setting aside the auction process in respect of sale of the subject property bearing No. 193/1, Village – Devali, Mehrauli, New Delhi (popularly known as ‘Sainik Farm Area’). The Petitioner is also challenging the auction in which the Petitioner itself is declared as successful auction purchaser. The challenge is on the ground of alleged suppression of material facts in contravention of section 55(1)(a) of the Transfer Of Property Act, 1882. The Petitioner is further seeking directions to the Respondent Nos. 2 and 3 / State to pay damages of Rs.5,00,00,000/- to the Petitioner for making the Petitioner participate in the auction process. The Petitioner is further seeking refund of the entire amount of purchase price of Rs.8,13,60,000/- paid by it alongwith interest @ 18% p.a. The Petitioner is also praying for restraining the Respondent No. 3-State from parting with or disposing of the amount paid by the Petitioner.

3. Apart from the prayers indicated above, there are certain other omnibus prayers made by the Petitioner, which are reproduced below:

“a(ii) this Hon'ble Court may be pleased to direct the Respondent No.3 not to embark upon to auction any property in future having defects of inability to execute documents such as conveyance /sale deed, effecting transfer in revenue records of auction purchaser, giving full and complete disclosure regarding defects, if any, in the auctioned property in compliance with the mandate of section 55 (1) (a) of Transfer of Property Act;

a(iii) that this Hon'ble Court may therefore be pleased to direct the Respondent No.2 and/or such other administrative authority to take action on the administrative side against the Respondent No.3 for embarking upon to auction the property not having clear and marketable title, giving complete disclosure regarding defects in the property in the auction notice as contemplated u/s. 55 (1) (a) of Transfer of Property Act concerning property bearing No. 193/1 village Devali, Mehrauli, New Delhi, admeasuring 2200sq. Yards;”

4. At the outset, Mr. Jha, learned Counsel for the Petitioner, submitted on instructions, that