Full Text
HIGH COURT OF DELHI
Date of Decision: 9th August, 2024
DINESH MITTAL & ORS. .....Petitioners
Through:
Through: Mr. Akhil Sibal, Sr. Adv.
(M: 9650290474)
Mr. Roopansh Purohit Adv. Dr. Pankaj Garg, Mr. Milind Garg, Mr. Yaksh Garg & Ms. Saumya Jain, Advs. for Applicant. (M:9560846436)
Ms. Noopur Singhal, Adv.
9312765888)
Mr. Rajeev Saxena and Ms. Megha Saxena, Advs. for the Applicant.
(M:9810811180)
Mr. Abhimanyu Bhandari, Ms. Nattasha Garg, Mr. Raghav Alok &
Mr. Thakur Ankit Singh Advs. (M:
9654998650)
Mr. Faisal Naseem & Mr. Dinesh Kumar Advocates (M: 9971936365).
C3 AND 15:52
SH. SAMEER SHARMA .....Petitioner
Through:
Through: Mr. Akhil Sibal, Sr. Adv.
Ms. Noopur Singhal, Adv.
Mr Abhishek Gupta, Adv. for Applicant in CA 27/2024.
JUDGMENT
1. This hearing has been done through hybrid mode. Directions qua Land Acquisition Collector (‘LAC’), Faridabad
2. In respect of the land situated in Sector 89, Faridabad, vide order dated 18th July, 2024, this Court had directed Mr. Jagdeep Sharma, ld. Counsel for the State of Haryana to appear along with a senior official from the LAC, Faridabad. The relevant portion of the said order reads as follows:
same.
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11. Let a chart in respect of the conditions be prepared by Ms. Sindhwani, Id. Counsel and be presented on the next date. The extension of the in-principle approval dated 25th June, 2024 is taken on record.
12. Mr. Jagdeep Sharma, ld. Counsel for the State of Haryana has entered appearance and submits that he would communicate the order dated 10th May, 2024 to the concerned LAC Faridabad.
13. Let a Senior Official from the LAC Faridabad who is aware of the facts of this case be present on the next date of hearing. Let a short note of the status be also brought by the LAC Faridabad, in respect of the amounts due qua the acquisition which was to be paid to the company in liquidation.
14. In CO. APPL. 840/2013 & CO.APPL. 841/2013, ld. Counsel for the Applicant wishes to file rejoinders.
15. Let him do so within six weeks.”
3. Today, none appears for LAC, Faridabad. No official is also present. Clearly, despite repeated orders passed by this Court, LAC, Faridabad is neither appearing before this Court, nor assisting this Court in respect of the amounts that are to be admittedly disbursed to the company under liquidation. Thus, due to the inaction of the LAC, Faridabad, the interest of thousands of investors is being compromised.
4. This Court has on repeated occasions directed the presence of the LAC, Faridabad or any competent official from the same office. Vide order dated 27th February, 2024, this Court directed as follows: “13. Regarding the directions concerning the LAC, the 15:52 said OLR states that in compliance with the said order, the OL sent a letter dated 23rd January, 2024, to the LAC, Faridabad, requesting the release of the remaining compensation for three land acquisition awards in favor of TIDCO, namely LAC No. R- 232/2016, R-233/2016, & R-233A/2016. However, no response has been received by this office. Thus, the OLR prays that directions be issued to the LAC to respond to the communications sent by the OL.
14. In relation to the above directions qua LAC, let notice be issued to LAC, Faridabad including through Counsel who appears for LAC i.e., Mr. Yeeshu Jain, who shall seek instructions and expedite the release of the compensation in terms of LAC No. R-232/2016, R- 233/2016 & R- 233A/2016.
15. Let the present order be communicated by the Registry to Mr. Yeeshu Jain, ld. Counsel (M: 9811394417).
16. It is directed that an official from the DTCP shall remain physically present in Court on the next date of hearing. Let the present order be communicated to the DTCP, through ld. Counsel Ms. Noopur Singhal.”
5. On 5th April, 2024 also none appeared on behalf of LAC, Faridabad. Thus, the following directions were issued:
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12. In view of the same, the order dated 27th February, 2024 along with today's order be sent to the following email addresses by the Registry. • dcfbd@hry.nic.in • eosbdhudal2@gmail.com A senior official from the OL's office shall also speak to the LAC, Faridabad and inform them of the orders passed by this Court.
13. If there is no appearance on behalf of the LAC, Faridabad, on the next date of hearing, the Court would then be passing directions in accordance with law for remittance of the compensation”
6. Vide order dated 10th May, 2024, the LAC Faridabad was again issued notice by this Court, wherein it has been directed as follows:
7. In this view of the matter, this Court has no option but to issue notice of contempt to the following: i. Sh. T.V.S.N. Prasad, IAS, Chief Secretary, Haryana Telephone no.: 0172-2740118, 15:52 Mobile No. 7042877882 Email: cs@hry.nic.in Address: 4th Floor, Haryana Civil Secretariat, Sector-1, Chandigarh. ii. Sh. Bijender Rana, Land Acquisition Officer, Faridabad, Haryana Mobile no.: +91-9958700798 Address: Office Address HSVP, Complex Sector- 12, Faridabad, Land Acquisition Officer, State of Haryana
8. The above-named individuals shall remain present in Court on the next date of hearing along with proper instructions regarding payment of the compensation amount, failing which, coercive measures would have to be taken by this Court. Sector-78, Faridabad
9. On 18th July, 2024, this Court directed the ld. Counsel for the OL as follows:
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10. Today, OLR No. 93/2024 has been placed on record as per which the draft sale notice for the project in Sector-78, Faridabad, Haryana, has been prepared for an auction to be conducted before the Court. A copy of the draft sale notice, along with the terms and conditions, is provided as Annexure-D to the said OLR for approval.
11. The Court has also perused the draft sale notice annexed as ‘Annexure-D’ to the OLR No. 93/2024. The earlier sale notice published on 17th June, 2024 and 18th June, 2024 had not evinced any bidder. It is the submission of ld. Counsels that considering that the reserve price fixed for the project is itself Rs.550 crores, the earnest money deposit may be modified to 5% at this stage to enable more bidders to come forward.
12. Insofar as the remaining conditions are concerned, the same shall be prescribed when the bidders appear before the Court and submit their bid.
13. Accordingly, the EMD shall be fixed as 5% and condition no. 7 of the terms and conditions contained in ‘Annexure-D’ shall be modified to the effect that the deposit with the OL shall be a sum as directed by the Court on the date of the bidding. Let the draft sale notice be now published by the OL’s office. Sector-89, Faridabad
14. Vide order dated 18th July, 2024, in respect of land situated at Sector 89, Faridabad it was directed as follows: “10. Ld. Counsel for the DTCP submits that the extension of the in-principle approval for the redevelopment rights in respect of the land situated in Sector 89, Faridabad has been granted to the OL. However, certain conditions are attached with the 15:52 same.
11. Let a chart in respect of the conditions be prepared by Ms. Sindhwani, ld. Counsel and be presented on the next date. The extension of the in-principle approval dated 25th June, 2024 is taken on record.”
15. Vide the previous order, the Court had also directed the OL to prepare a chart in respect of the conditions. The in-principle approval given by the DTCP dated 28th March, 2024 sets out five conditions. A chart has been prepared, and is annexed to OLR No. 93/2024 as ‘Annexure-F’, dealing with the said conditions. The said chart is reproduced below:- S No. Terms & Condition of DTCP for in-principal approval (Dt. 28.03.2024) Observations/submissions by the office of the Official Liquidator
1. An undertaking to abide by the provision of Act/Rules and all the directions that may be given by the DTCP III connection with the abovesaid licenses. Can be given by the Official Liquidator and will also be made a condition in the sale notice for the prospective developer.
2. Objections regarding Joint Development rights/Marketing rights shall be invited from the allottees through public notice and/or notice under registered cover, as per the detailed procedures and performa prescribed by the DTCP as per instruction dated 25.01.2021. This Hon'ble Court vide judgment dated 10.05.2024 examined the contentions of the parties in para 11 to 16 and w.r. t. allottees of Sector-78 project, has held that:- "17. A conjoint reading of the orders leaves no doubt that the assets must be sold and the sale proceeds distributed among all the claimants. Under such circumstances, it is not feasible to reverse the decision and give the allottees of TFAA hope that apartments would be built and 15:52 allotted to them. The best outcome in the present winding-up petition is for the payment of their claims, hopefully with some interest in accordance with the law. The assets in question in Sector 78, Faridabad are valuable, and the sale of these assets would provide relief to all the allottees, who have invested significant amounts in this project long ago.". Copy of order dated 10.05.2024 is annexed as Annexure-I. The said decision would also be binding on the erstwhile allottees of Sector-89 as they have filed their claims against the Company (In Liqn.) with the Official Liquidator. As there are now no allottees ofthe Company (In Liqn.), DTCP may exempt the said condition of inviting objections from the allottees.
3. An undertaking that all the liabilities of the existing Developer shall be owned by new entity qua their share. Can be given by the Official Liquidator and will also be made a condition in the sale notice for
4. You shall submit a detailed report showing line of action to complete the project. The said condition will also be incorporated in the sale notice for
5. The official email ID of new entity. Will be provided.
16. The court has perused the chart. As per the above chart, the OL shall 15:52 give the undertakings qua condition nos. 1,3,[4] and 5.
17. Insofar as condition no. 2 is concerned, vide order dated 10th May, 2024, in relation to the land situated in Sector 78, Faridabad, this Court has already held that the assets must be first disposed of and the amounts received is to be distributed among all the claimants, and it was not feasible to reverse the decision and give the allottees of TFAA a hope that apartments would be built and allotted to them. The relevant portion of the said order reads as follows:
15:52 Kaiser-I-Hind Spg. & Wvg. Co. Ltd. and Ors., (AIR 1970 SC 1041), where the Supreme Court observed as follows: …
13. After having heard ld. Counsels for the parties, it ought to be noted that the sale of TIDCO’s assets has been pending for several decades. Specifically, regarding the land situated at Sector 78, Faridabad, it has taken a long time to renew the DTCP license necessary to make the assets of the said company marketable and to obtain the best possible value for the sale, in the interest of the creditors. The DTCP has now renewed the license in terms of the order dated 21st December, 2023, and the said project, on an ‘as is and where is whatever there is’ basis, is proposed to be sold by the OL. The valuation has already been undertaken, and based on this, the reserve price of this asset has been fixed at Rs. 550 crores. …
17. A conjoint reading of the orders leaves no doubt that the assets must be sold and the sale proceeds distributed among all the claimants. Under such circumstances, it is not feasible to reverse the decision and give the allottees of TFAA hope that apartments would be built and allotted to them. The best outcome in the present winding-up petition is for the payment of their claims, hopefully with some interest in accordance with the law. The assets in question in Sector 78, Faridabad are valuable, and the sale of these assets would provide relief to all the allottees, who have invested significant amounts in this project long ago.
18. In the overall scheme of things, therefore, this Court is of the opinion that the OL’s proposal for selling the land situated in Sector 78, Faridabad, in terms of the finalised draft sale notice, which is 15:52 submitted to the Court, ought to be permitted to go forward. The same is, accordingly, approved. The OL is free to publish the same.
19. Let the finalised draft sale notice be published and the e-auction be conducted through RailTel Ltd. The said draft sale notice shall be given adequate publicity, so that sufficient number of bidders may be allowed to bid for the same, including in various newspapers in Hindi, English as also in regions languages in Delhi, Calcutta, Hyderabad and Mumbai. The finalised draft sale notice is annexed to the present order as ‘Annexure-A’”
18. In view of the above observations, which are squarely applicable to issues arising out of the land situated in Sector 89, Faridabad, no objections need to be invited by the OL from the general public at this stage, as the company is already being wound up, and all monetary claims would need to be filed with the OL. Additionally, there cannot be any further allottees in respect of this project.
19. The above clarification is objected to by the allottees of the TFAA, who submit that their claims would have to be satisfied until allotment is being adjudicated.
20. However, in the opinion of this Court, the said issue had already been adjudicated on 10th May, 2024, wherein has been clearly held that the best outcome in the present winding up petition is for payment of the claims.
21. Vide order dated 29th May, 2024, in a review application CO.APPL. 572/2024, this Court refused to stay the operation of the order dated 10th May, 2024. The said order was challenged before the ld. Division Bench in Co.App. 17/2024 titled ‘Saraswati Sewa Kunj Educational Trust v. 15:52 TIDCO’, wherein, vide order dated 5th July, 2024, the ld. Division Bench refused to interfere with the order dated 10th May, 2024, and thus the same has achieved finality. The relevant portion of the order dated 5th July, 2024 passed by the ld. Division Bench reads as follows:
22. Thus, the objections raised by TFAA are untenable, and are rejected. 15:52
23. OL may give its response to the in-principle approval by the DTCP in respect of the five conditions as per the above order, after which the DTCP shall give the final approval for the land situated at Sector 89, Faridabad.
24. List on 4th October, 2024 at 2.30pm.
PRATHIBA M. SINGH JUDGE AUGUST 09, 2024 MR/dn 15:52