Gaurav Hargovindbhai Dave vs Hema Manoj Shah & Ors

Company Appeal (AT) (Insolvency) No. 368 of 2019

IN THE MATTER OF:

Gaurav Hargovindbhai Dave ...Appellant

Versus

Hema Manoj Shah & Ors. ...Respondents

Company Appeal (AT) (Insolvency) No. 388 of 2019

IN THE MATTER OF:

Vishal Dave ...Appellant Versus Hema Manoj Shah & Ors. ...Respondents

Present:

For Appellant : Mr. Aditya Parolia and Mr. Kumar Pradyuman, Advocates

For Respondents: Mr. Mudit Sharma and Ms. Prajakta Kulkarni and Ms. Nandini Sharma, Advocates

Ms. Hema Shah, RP

ORDER

22.04.2019 These appeals have been preferred by 'Mr. Gaurav

Hargovindbhai Dave' and 'Mr. Vishal Dave', who were respectively

Director/Shareholder and son of the Director of the 'Corporate Debtor', against

order dated 28th March, 2019 passed by the Adjudicating Authority (National

Company Law Tribunal), Mumbai Bench, Mumbai, whereby the Adjudicatory

Authority noticed the submission made by the 'Resolution Professional' and 2

observed that despite the directions Mr. Gaurav Dave and Mr. Vishal Dave had

not appeared in the Court and their action is in complete disregard of Court

orders and the Adjudicating Authority ordered for Contempt of Court

proceedings against them. Thereafter, notice was issued in the Contempt

proceedings, Mr. Vishal Dave and Mr. Gaurav Dave having failed to appear before

the Adjudicating Authority and to ensure their presence, the Adjudicating

Authority passed the following order :

"We at this moment direct Mr. Sandeep Shah,

Statutory Auditor of the company to remain present in

person the Court on 15.4.2019. Advocate appearing on

behalf of Mr. Gaurav Dave is being directed to inform

the statutory Auditor of the company for his presence

on 15.4.2019.

Mr. Gaurav Dave and Mr. Vishal Dave are again

summoned to submit their explanation, against the

notice, which has been issued under the Contempt of

Court Act."

2. Learned counsel appearing on behalf of the Appellants submitted that the

Appellants wanted to co-operate with the 'Resolution Professional' and in fact

the 'Resolution Professional' has taken over the charge of the 'Corporate Debtor'.

He further submits that he has come with the keys of the office of the 'Corporate

Debtor' to hand over to the 'Resolution Professional'.

3. Learned counsel appearing on behalf of the 'Resolution Professional' along

with Ms. Hema Shah, RP submitted that the Appellants - Mr. Gaurav Dave and

Mr. Vishal Dave all the time created hindrances and in fact tampered with the

Company Appeal (AT) (Insolvency) No. 368 of 2019 3

property and many of the materials have been taken away and electricity has

been disconnected and they have not co-operated and handed over the charge.

It is further submitted that earlier the Appellants moved before this Appellate

Tribunal when this Appellate Tribunal dismissed the appeal on 25th March, 2019

with cost of Rs. 1,00,000/-, which has not been paid by the appellants.

4. In the facts and circumstances of the case while we dismiss the appeal,

we impose cost of Rs. 5,00,000/- (Rupees Five Lakhs only) on each of the

appellants in addition to the cost earlier imposed which is to be paid by the

Appellants within 30 days.

5. Insofar as initiation of Contempt Proceedings, we have not expressed any

opinion as the Contempt Proceeding matter is pending before the Adjudicating

Authority who will decide the same.

[Justice S.J. Mukhopadhaya] Chairperson

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

[ Kanthi Narahari ] Member (Technical)

/ns/gc

Company Appeal (AT) (Insolvency) No. 368 of 2019