Full Text
HIGH COURT OF DELHI
Date of Decision: 22nd October, 2024
NISHIT BADOLA .....Petitioner
Through: Mr. Tanmaya Mehta & Mr. Jai Shankar Sikand, Advs.
Through: Mr. Anurag Ahluwalia, CGSC for
& Ms. Hridyanshi Sharma, Advs. for R1&2.
Mr. Rahul Mehra, Sr. Adv.
Mr. Jai Sikand, Advs.& Mr. Shloka Chandra for applicant/GWC.
Mr. Nalin Kohli, Sr. Adv.
JUDGMENT
1. This application has been moved on behalf of the applicant/Greenopolis Welfare Confederation („GWC‟ for short) seeking to intervene in the present matter and become a party.
2. A copy of this application has been served upon the learned counsel for the petitioner.
3. Mr. Tanmaya Mehta, learned counsel for the petitioner submits that they have no objection if the said application is allowed.
4. In a nutshell, it is the applicant/appellant who has filed the civil appeal before the Supreme Court bearing CA APPL. No.6792/2023 challenging the order dated 28.08.2023 passed by the NCLAT[1], and consequently, a direction has been passed by the Supreme Court vide order dated 13.10.2023 directing that „status quo to be maintained by the parties including the assets‟.
5. Accordingly, the present applicant be impleaded as the respondent no.4. Let an amended memo of parties be filed within four weeks.
6. The application is disposed of. The registry shall not list this application in future. CM APPL. 1381/2024
7. This application has been moved on behalf of the applicant/Mr. Pradeep Kumar Kaushik, Interim Resolution Professional (IRP) of M/s Three C Shelters Pvt. Ltd. which is undergoing CIRP proceedings.
8. This application already stands disposed of vide order dated 23.07.2024. The registry shall not list this application in future. CM APPL. 826/2024: MODIFICATION/CORRECTIONS ON THE WEB SITE
9. Mr. Tanmaya Mehta, learned counsel for the petitioner has alluded to the order dated 28.02.2024 and 22.04.2024 and it is vehemently urged that the status of M/s Three C Shelters Pvt. Ltd. is still being shown as „Active‟ on the website of the Ministry of Corporate Affairs („MCA‟ for short), and a copy of the information downloaded from the Ministry of Corporate Affairs on 22.10.2024 at 11:22:22 am has been placed on the record.
10. It is vehemently urged that the „Active‟ status of the aforesaid company gives an impression to the public that the company is still active whereas the factual situation is that there is no functioning Board of Directors as of now and no activities are being performed by the company so as to ameliorate the sufferings of the homebuyers.
11. It is also pointed out that in the Press Release dated 20.09.2024 by the Enforcement Directorate, the office and residential premises of Mr. Surpreet Singh Suri, Mr. Vidur Bhardwaj, Mr. Nirmal Singh, Mr. Aditya Gupta, Mr. Ashish Gupta, Mr. Mohinder Singh Retd. IAS (the then CEO of Noida Authority) have been raided and they have been found to have indulged in the money laundering. It is pointed out that a huge recovery of cash and jewellery has been made from them during the course of the searches.
12. Be that as it may, Mr. Kaushal Jeet Kait, learned counsel for the respondent no.1/UOI has pointed out that in the order dated 22.04.2024, it is already recorded by this Court that the Registrar of Companies on its own has taken an initiative to provide/display the following information on its websites:-
1 National Company Law Appellate Tribunal “In view of various pending litigation, a status quo is ordered on the affairs and assets of the company. Three C Shelters Private Limited, by the Hon'ble Supreme Court vide Case No. 006792- 006796 of 2023 order dated 13.10.2023”.
13. However, Mr. Tanmaya Mehta has urged that the information displayed on the website of the MCA is misleading and would result in several anomalies, the submission is also echoed by Mr. Nalin Kohli learned Senior Counsel for the IRP.
14. At this stage, it may be noted that Shri Sumesh Dhawan, advocate appearing for another applicant/intervenor Greenopolis Welfare Association (for short „GWS‟) opposes any further direction for rectification of the status of the company on the MCA website, which is baffling considering the plight of the homebuyers whose dreams for acquiring residential units in the projects launched by Three C Shelters Pvt Ltd. stands irreparably shattered. The plea raised seems to be prejudicial to the interests of the stakeholders including the creditors.
15. Incidentally, it may also be noted that even the learned counsel for the IBBI, which party stands impleaded in the present proceedings as the respondent no.3 in terms of the order dated 23.07.2024, also raises objection to any direction that may be passed to amend or modify the information/status on the MCA website on the premise that the Supreme Court has passed an order dated 13.10.2023 directing that „status quo to be maintained by the parties including the assets. Evidently, the IBBI is not the appellate authority to entertain any claims from the homebuyers and it is a matter of record that no appeal has been filed against the rejections of the claims by anyone including GWA. Incidentally, it is also borne out from the record that earlier IBBI had emailed a request to the IRP for a change of status of the company on 16.10.2023.
16. On the other hand, Mr. Nalin Kohli, learned senior counsel for the IRP/Mr. Pradeep Kumar Kaushik as well as Mr. Rahul Mehra learned senior counsel and Mr. J Sai Deepak, learned senior counsel appearing for the impleaded party viz. „GWC‟ have strenuously urged that the necessary directions should be passed against the Ministry of Corporate Affairs to correct the information on its website in the larger public interest.
17. After some arguments, Mr. Kaushal Jeet Kait, learned counsel for the respondent no.1/UOI submitted that since the newly added party viz. GWF, which is the appellant in the proceedings before the Supreme Court is agreeable to necessary modification, the Court may pass an appropriate direction.
18. It may be noted that during the course of the arguments, learned counsel for the applicant/intervenor GWS which is yet to be impleaded in the present matter as well as learned counsel for the IBBI vehemently urged that no further directions be passed in the present matter in view of the order dated 13.10.2023 by the Supreme Court.
19. Having heard them again, first things first, the plea by the MCA that it cannot make any amendments on its website due to certain technical issues is wrong and not fathomable.
20. Secondly, this Court is the of the considered view that in compliance with the letter and spirit of the directions passed by the Supreme Court, the status quo has to be maintained with regard to the assets of the corporate debtor and appropriate direction can be passed so as to safeguard the interest of the stakeholders including the investors/home buyers and it goes without saying that the latter parties are victims of the entire nefarious activities on the part of the previous management of the corporate debtor.
21. Accordingly, the respondent no.1/Ministry of Corporate Affairs is directed to ensure that the company status of M/s Three C Shelters Pvt. Ltd. should be disclosed/notified as „under CIRP‟ on its website within two weeks from today failing which the Registrar of Companies shall appear in person on the next date of hearing at 2.15 pm through VC.
ROLE OF THE IRP
22. At this stage, Mr. J Sai Deepak, learned counsel for the newly added party viz. GWC, which is the appellant before the Supreme Court, has invited the attention of this Court to the direction contained in the paragraph no.11 of the order dated 23.07.2024.
23. Mr. Kohli, learned senior counsel for the IRP submits that he may be given the liberty to file the updated status report with regard to the status of the assets including movable and immovable properties and affairs of the corporate debtor in a sealed cover. The same is allowed and it is directed that the same be kept in a sealed cover till further order.
24. Mr Kohli has placed a hard copy of a proposal on the record, thereby suggesting that the IRP may be allowed to act on certain aspects of the matters so as to take control of the assets of corporate debtors and thereby ensure that no assets of the company are wasted, disposed of to the detriment of the stakeholders.
25. It is urged by Mr. Kohli, learned senior counsel for the IRP that he has come to know of instances where the properties belonging to the corporate debtor are being sold or pilfered away which is detailed in the updated status report placed in a sealed envelope on the record. It is urged that the IRP is not doing anything inconsistent with the directions of the Supreme Court.
26. He has suggested that the IRP may be allowed to take the following steps:-
Further, these assets will be liquidated to generate cash flows to realize the claim of the genuine financial claimants of the Corporate Debtor.
3. Mutation of all the identified laundered assets in the name of Three C. Shelters Pvt. Ltd. as such assets have been created by the siphoned off monies from Three C Shelters Pvt Ltd.
4. Inviting Expression of Interest ["EOI"] with respect to the assets which have been identified by the IRP, for better valuation so that the claims of the genuine financial claimants are realized.
5. Publicizing the laundering of assets to spread awareness among the public at large that such assets have been created from the siphoned off monies of Three C. Shelters Pvt Ltd. Any transaction with respect to such assets would entitle the IRP to take necessary action against the concerned persons.
6. Necessary steps to identify more assets, in addition to those which have already been identified in the Four Status Reports prepared by the IRP. Further taking steps to initiate action against the concerned persons who are indulged in diversion of assets and have entered upon sale deeds with respect to the laundered assets post 23.01.2019 [when these assets were dedicated for Greenopolis by Three C before Ld. HRERA] and 26.05.2023 [ wherein the Ld. NCLT directed verification of all claims and to prepare Status Reports ].
7. Taking over the books of accounts of Three C Shelters Pvt. Ltd which have been withheld from the IRP by the erstwhile management and the erstwhile suspended RP as also stated in the Status Report-2.
8. Getting a forensic audit by an independent private agency for each entity within the Three C group. Only through a thorough and impartial audit can the full scope of the fraudulent activities be exposed, ensuring accountability and revealing the true extent of the misappropriated monies hidden within the group's operations.
9. Filing a claim in the CIRP of Three C Universal Developers Pvt Ltd. as hundreds of crores has been siphoned off from Three C Shelters Pvt Ltd to Three C Universal Developers Pvt Ltd.
10. Identifying all the debit transactions that have been done from the bank accounts of Three C Shelters Pvt Ltd in order to trace the siphoning of funds. Further tracing the concealed bank accounts which were operated in order to siphon off monies from Three C Shelters Pvt Ltd.
11. Filing of an intervention application before the Hon'ble Supreme Court in C.A. No. 7762 of 2023, titled as "Gyan Chand Mishra v. Three C Universal Developers Pvt Ltd & Ors." placing on record the large-scale siphoning off funds from Three C Shelters Pvt Ltd to Three C Universal Developers Pvt Ltd. and the illegalities committed by Three C Group.
12. Conducting a meeting of the financial claimants / creditors of the Three C Shelters Pvt Ltd., as identified in the Status Report.”
27. Having heard the learned counsel for the parties and in order to safeguard the assets of the corporate debtor, for now, the IRP is allowed to take measures which are indicative above vide serial no.1, 2, 3, 5, 6 and 12. In the consideration of this Court, such measures are necessary so as to safeguard the assets of the company and also the interest of the stakeholders.
28. Compliance cum updated status report be filed by the IRP on or before the next date of hearing.
29. This application is disposed of.
CM APPL No.12418/2024
30. This application has been moved on behalf of the applicant/Mr. Vidur Bhardwaj seeking impleadment as a party in the present proceedings.
31. This Court vide order dated 28.02.2024 directed the applicant to explain as to how or in what manner he is connected with the corporate debtor/company which is undergoing CIRP proceedings before the NCLT[2]. No document has yet been filed.
32. No one is present for the applicant today. Renotify on 26.11.2024.
33. This application has been moved by the applicant/GWS Welfare seeking impleadment in the present petition as the respondent no.5.
34. No reply has been filed by the petitioner to the aforesaid application.
35. Let the same be filed within two weeks from today.
36. Renotify on 26.11.2024. CM APPL. 22897/2024
37. This application has been moved by the applicant/IRP seeking certain directions against the IBBI.
38. Let a copy be supplied to the learned counsel for the IBBI and a reply be filed within four weeks from today.
39. Renotify on 26.11.2024.
40. Renotify on 26.11.2024.
DHARMESH SHARMA, J. OCTOBER 22, 2024 Ch/Sa