Bhagyanagar Boards & Chemicals Pvt Ltd & ... vs Vijay Kumar Goyal & Ors

Bhagyanagar Boards & Chemicals Pvt. Ltd. & Ors. ...Appellants Versus Vijay Kumar Goyal & Ors. ...Respondents

For Appellant: Mr. Ramji Srinivasan, Mr. Abhinav Rao, Ms. Monalisa Kosaria and Mr. Sikhar Singh, Advocates

For Respondent: Mr. Ravi Raghunath, Advocate (R1-R3)

ORDER

18.02.2020 Heard learned counsel for the Appellants and Mr. Ravi

Raghunath, Advocate for Respondent Nos. 1 to 3, the original Petitioners in the

Company Petition. Respondent Nos. 4 to 6 are Proforma Respondents, as

arrayed. The Learned Counsel for the Respondent Nos 1 to 3 has appeared on

his own under instructions from these Respondents. He is also heard.

It is stated that Impugned Order Para 1 shows as to the relief, which was

sought in the IA No. 1103 of 2019 which was filed by Respondent Nos. 1 to 3

herein. The prayer reads as under:

"a. Direct the Respondents 1 and 3, 5 to 8 to deposit

the compensation amount of Rs. 9,99,18,703/-

(Rupees Nine Crores Ninety-nine Lakhs Eighteen

Thousand Seven Hundred and three only) and

such further or other amounts that may be received

by any of the Respondents from the Greater 2

Hyderabad Municipal Corporation in a separate

Bank Account, to the Credit of the present

proceedings in T.P. No.06/HDB/2016, and to

further direct the Respondents not to alienate or

otherwise encumber the said compensation

amount in any manner whatsoever;"

The Learned Senior Counsel submits that in spite of such prayer the

order passed by the Learned NCLT, Hyderabad Bench, Hyderabad is as

follows:

"a. In view of the above, the Respondents are hereby

directed to place the amount of Rs. 9,99,18,703/-

received as compensation from the Greater

Hyderabad Municipal Corporation in a separate

Fixed Deposit Account for safe keeping and also

place all the particulars of the amounts and stage

of the application filed by R 1 Company for

enhancement of compensation within two weeks

before this Bench and further serve a copy of the

same to the Applicants."

Learned Counsel states that the amount received as compensation

towards land has already been deposited by the Appellants in Fixed Deposits.

Learned Senior Counsel tenders at bar particulars of the Fixed Deposits which

have been created of the amounts. The document is marked 'X' for

Company Appeal (AT) No. 42 of 2020 3

identification. The Learned Senior Counsel submits that it was stated to the

Learned NCLT that the amounts are kept in safe custody but still such order

to put the amount in separate Escrow Account has been passed. The learned

counsel for the Respondents is stating that the Appellants did not disclose

particulars as to how and where the money is deposited and it is only now

that the particulars of Fixed Deposits are disclosed.

The Appellant has in the Appeal Para 7.44, stated about keeping the

amount of Rs. 9.87 Crores in Fixed Deposits.

It is stated that the Company Petition itself needs to be decided urgently

and that it is kept for final hearing on 4th March, 2020. It is stated that even

written arguments have been filed.

It appears to us that if the amounts have been kept in Fixed Deposits,

the same may continue to be kept in Fixed Deposits and the same should be

renewed with interest from time to time. Learned Counsel for the Respondent

submits that there being disputes between the parties, the Fixed Deposits

should not be encumbered by the Appellants, we find that the request is

reasonable. It would be appropriate that the Company Petition is decided early

for the welfare of the company.

The Learned Counsel for the Appellant states that the Appellants had

received Rs. 9,99,18,703/- out of which some amount was utilised for repair

of the walls and the Company which was demolished by the Municipal

Corporation. Learned Counsel for the Respondents submits that this was

against the orders of the Ld. Company Law Board, copy of which is at

Annexure A-32, which had directed the Appellants to keep the whole amount

in safe custody.

Company Appeal (AT) No. 42 of 2020 4

The Fixed Deposits created are of Rs. 9,87,61,429/-.

For the above reasons, we substitute figure of Rs. 11,57,274/- in the

Impugned Order Para 7, in place of Rs. 9,99,18,703/-, the rest of the amount

which is stated to have been deposited in Fixed Deposits shall be continued

to be maintained in Fixed Deposits as shown in document marked 'X'. The

Appellants would be responsible to renew the Fixed Deposits with interest

from time to time, till decision of the Company Petition. The Appellant will not

encumber the Fixed Deposits in any manner.

The Company Petition be urgently disposed preferably within two

months.

With this modification, the present Appeal stands disposed of.

[Justice A.I.S. Cheema] Member (Judicial)

[Justice A.B. Singh] Member (Judicial)

[Kanthi Narahari] Member (Technical) BB/md /

Company Appeal (AT) No. 42 of 2020