Acrow Realcon Pvt. Ltd. & Ors vs Union Bank Of India & Anr

Acrow Realcon Pvt. Ltd. & Ors. ...Appellant(s)

Versus

Union Bank of India & Anr. ...Respondent(s) Present: For Appellant : Mr. Krishnendu Datta, Sr. Advocate with Mr. Prateek Gupta, Mr. Raghav Tiwari, Advocates. For Respondents : Mr. Abhishek Anand, Ms. Shankari Mishra, Mr. Arun Kumar Shukla, Mr. Naman Shukla, Ms. Palak Kalra, Advocates.

ORDER

(Hybrid Mode) 05.05.2025: Heard Counsel for the Appellant and Ld. Counsel

appearing for Union Bank of India on whose application, IA No. 1214 of

2023, impugned order dated 18.12.2024 as well as subsequent order dated

21.01.2025 have been passed.

2. On application of Union Bank of India notices were issued and

service reports were submitted on 09.09.2024 that these companies are no

longer existing at the given addresses. Adjudicating Authority vide order

dated 18.12.2024 directed that an explanation be filed by the Respondents

personally as to how these addresses are being used when these companies

are not in existence at that address. Further Respondents to file the

Response and further directed to be physically present on the next date.

Further, in paragraph 8 a direction was issued to the respective RoC to investigate and verify the existence of these Respondent companies at the

registered address given in the letterhead and submit the report.

3. By subsequent order dated 21.01.2025 Adjudicating Authority

noticed that no response have been filed, it further granted one-week time

subject to Costs of Rs. 25,000/-upon each of the Respondents to file a

response.

4. The Appellant aggrieved by the above order has filed this appeal.

5. Shri Krishnendu Datta, Ld. Sr. Counsel submits that when the

Adjudicating Authority has already directed the RoC to carry on the

investigation and submit a report there was no requirement to carry on the

same exercise by the adjudicating authority in the proceedings before the

adjudicating authority which was IA No. 1214(AHM)2023.

6. It is further submitted that there was no necessity for issuance of

direction for physically present since the director shall cooperate with the

RoC and in the investigation by the RoC.

7. It is submitted that subsequent to order dated 21.01.2025

adjudicating authority noticed that no response have been filed cost of Rs.

25000/- was imposed on each Respondent which was un called for. It is the

RoC the authority under the Companies Act, 2013 who has to make

investigation and take decision with regard to registered office of a

Company.

8. Shri Abhishek Anand, Ld. Counsel for the Respondent submits that

the Adjudicating Authority has already directed RoC to exercise and

investigate submit the report which directions are contained in paragraph 8 of the order, in event the said directions are maintained the Respondent

have no objection that no proceeding at this stage be initiated or gone into

regarding the existence of the companies at the registered office mentioned

by the adjudicating authority.

9. Shri Abhishek Anand, Ld. Counsel however submits that the report

of the RoC may be awaited and the directors may be directed to co-operate

with the said investigation.

10. We have considered the submissions of the Counsel for the parties

and perused the record.

11. The issue which has been flagged by the adjudicating authority vide

order dated 18.12.2024 is non-existence of the companies at the given

address where notices were issued by the bank. Adjudicating authority in

paragraph 8 of the order issued the following direction:

"8. Meanwhile, we also direct the respective RoC to investigate and verify the existence of these Respondent companies at the registered address given in the letterhead of the resolution and submit the report. Details of the same are as under:

S. Registered Company Company CIN Respondent No. Address Name No 1 2 Gala No. Acrow U45201DN2007PTC000249 Respondent 107, Realcon Pvt. No.2 Everest Ltd.

Industrial Estate, Near 66 Kva Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli-

396230 3 RM-81, Royal U72900MH2009PYC194395 Respondent Sudarshan Compservices No.3 Nagar, Pvt. Ltd. MIDC, Phase -II, Dombivali East 421201. 4 Room No. Charms U45202ON200PTC000207 Respondent 8, Patel Holding Pvt. No.4 Pada, Ltd. Samarvani, Silvassa Dadra & Nagar Haveli- 396230 5 Gala No. Elnet Conpro U25191DN2006PTC000200 Respondent 105, Pvt. Ltd. No.5 Everest Industrial Estate, Near 66 KVA Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli- 396230 6 Unit No. Sumeru U70100MH2006PTC159109 Respondent 34A, Reality Pvt. No.6 2 Floor, nd Ltd. Arsiwala Bldg, Wode House Rd, Colaba, Mumbai- 400053 7 Gala No. Amex U45201DN2007PTC000252 Respondent 108, Infrastructure No.7 Everest Pvt. Ltd. Industrial Estate, Near 66 KVA Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli- 396230 8 Office No. Wellworth U17120MH2009PTC194116 Respondent M2, Apparels Pvt. No.8 Maznine Ltd. Floor, Pearl Plaza, Tata Road No. 2, Opera House. Mumbai- 400004 9 25, Floor- Anukaran U74140MH2009PTC194927 Respondent 2, Consultancy No.9 Plot-59/61, Pvt. Ltd. Arsiwala Mansion, Nathalal Parikh Marg, Colaba, Mumbai- 400005 10 Flat No. Eremurus U51900DN2010PTC000317 Respondent 304, Trading No.10

Cosmicity Company Pvt.

Jupiter Ltd. H.No. 1615/20, Build Type- C, Sayli, Silvassa- 396230

11 Office No. - Cyra Capitals U67120MH2008PTC184636 Respondent 122, Pvt. Ltd. No.11 1st Floor, Paras Centre A, Tata Road No.-2, Opera House Mumbai Mumbai-

400004 12 Gala No. Single Point U72900DN200OPTC000156 Respondent 108, Security No.12 Everest Solutions Industrial Estate, Near 66 KVA Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli- 396230 13 Gala No. Shri Gopala U45402DN2006PTC000208 Respondent 108, Holding Pvt. No.13 Everest Ltd. Industrial Estate, Near 66 KVA Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli- 396230 14 RM-81, Unique U74990MH2009PTC196366 Respondent Sudarshan Warehouse No.14 Nagar, Pvt. Ltd. MIDC, Phase-11, Dombivli (East)- 421201 15 Gala No. Carnat U45201DN2007PTC000254 Respondent 107, Estates Pvt. No.15 Everest Ltd. Industrial Estate, Near 66 KVA Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli- 396230 16 RM-81, Picturesque U51109MH2010PTC200063 Respondent Sudarshan Trading Pvt. No.16 Nagar, Ltd. MIDC, Phase-11, Dombivli (East)- 421201 17 Office No. Tanvish U51109MH2009PTC196078 Respondent 122, 1st Trading Pvt. No.17 Floor, Ltd. Paras Centre A, Tata Road No. 2, Opera House, Mumbai- 400004 18 Office No. Concart Con U45201DN2006PTC000218 Respondent 108, Pro Pvt. Ltd. No.18 Everest Industrial Estate, Near 66 KVA Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli- 396230 19 Office No. Axtel U45201DN20079TC000255 Respondent 108, Properties No.19 Everest Pvt. Ltd. Industrial Estate, Near 66 KVA Power Sub Station, Amli, Silvassa, Dadra and Nagra Haveli- 396230 20 Office No. Madhu U17100MH1986PTC041758 Respondent 122, 1st Crimpers Pvt. No.20 Floor, Ltd. Paras Centre A, Tata Road No. 2, Opera House, Mumbai- 400004 21 Plot No. Shri Ganesh U18101MH1992PTC065303 Respondent 6/4 & 6/5, Hosiery Mills No.21 TTC MIDC Pvt. Ltd. Pawane Village, Navi Mumbai, Thane- 400705 22 Office No. Taban Real U70109MH201OPTC209037 Respondent 127, 1st Estate Pvt. No.22 Floor A- Ltd. Paras Centre A, Tata Road No. 2, Opera House, Mumbai- 400004 23 Rrn-81, Vighnaharta U74990MH2009PTC196826 Respondent Sudarshan Corrugators No.23 Nagar, Pvt. Ltd. MIDC, Phase-11, Dombivli (East), Thane- 421201 24 Rrn-81, Shri Govind U74990MH2009PTC196431 Respondent Sudarshan Cement Pvt. No.24 Nagar, Ltd. MIDC, Phase-11, Dombivli (East), Thane- 421201 25 Gala No. Richi-Rich U45201DN2006PLC000188 Respondent 107, Realty Ltd. No.25 Everest Industrial Estate, Near 66 KVA Power Sub Station, Amli- Silvassa- U.T. of Dadra and Nagra Haveli- 396230 26 27A, Kausar U17120MH2009PTC196397 Respondent Mezzanine Textiles Pvt. No.26 Floor, Ltd. Swadeshi Mill Building, Plot No. 80/84, J.5.5 Road Opera House, Girgaon, Mumbai- 400004

12. When the adjudicating authority had called for the report from the

RoC to investigate and verify the existence of the companies at the address

mentioned authority ought to have awaited the report for proceeding further

in the matter and it was not necessary for the adjudicating authority to ask

the director to submit a explanation or be physically present before the

adjudicating authority on the next date.

13. We thus are of the view that directions of the adjudicating authority

for directing the director to physically present is not called for at this stage

and in the facts of the present case no order was required for imposing cost

of Rs. 25000/- each upon the Respondents for submitting the reply within a

week.

14. We are further of the view that directions contained in paragraph 3

of the order dated 18.12.2024 need to be set aside while maintaining the

directions issued in paragraph 8 of the order and the cost imposed by order

dated 21.01.2025 is also set aside. The Adjudicating authority may await

the report of the RoC with regard to existence of the companies, however

may proceeded in accordance with law with regard to any other issue before

it.

15. After a report is received as directed in paragraph 8 of the order by

the adjudicating authority, it shall be open for the parties to take such steps

as permissible in law.

16. It shall be open for the adjudicating authority to proceed to decide

IA No. 1214 of 2023 either by awaiting the report or without awaiting the

report.

17. We make it clear that we have not expressed any opinion with

regard to existence of companies.

18. The appeal is partly allowed as indicated above.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) sr/nn