2016 (12) TMI 63 - SC - Companies Law

Sahara SEBI Refund Account: Deposit Orders, Property Sale Restrictions, Interlocutory Applications

The Court directed Saharas to deposit further amounts in the Sahara SEBI Refund Account to continue the interim arrangement. Saharas were not allowed to ... Permission to sell the property - relaxation of condition to enable the Saharas to sell the properties at a price less than the circle rates - Held that:- We direct that the interim arrangement made by our Orders dated 06.05.016 and 11.05.2016 shall continue till 06.02.2017 subject to the Saharas depositing in the Sahara SEBI Refund Account a further amount of ₹ 600,00,00,000/- (Rupees Six hundred crores only). Needless to say, in case the deposit is not made, the contemnors shall be committed to prison as before. We are not for the present inclined to modify the direction already issued by us as to the rate at which the Saharas shall sell their properties. We, however, make it clear that in any given case, if there is a proposal to sell any item at a price less than 90% of the circle rate, the Saharas shall be free to apply for permission of the Court in which event this Court would pass appropriate orders after hearing learned counsel for SEBI. As SEBI submits that the Saharas are permitted to sell the property situate at Bahriach. Applicant in I.A. Nos. 212-214 who happened to be the purchaser of the said property, according to Mr. Datar, had offered to deposit the balance amount of ₹ 20,25,00,000/- towards the sale consideration with SEBI on or before 20.11.2016. He submits that the needful has not been done by the purchaser and that the Saharas ought to deposit the balance amount, if they have received the same or refrain from executing the sale deed. Mr. Sibal seeks time to verify the facts and to take necessary steps for ensuring deposit of the balance sale consideration in the SEBI account. He is given four weeks' time for the purpose. In case the sale deed has not been executed by the Saharas in favour of the purchaser of the Bahriach property, no sale deed shall be executed unless the deposit of the amount is ensured. Issues involved:1. Payment plan proposed by Saharas2. Continuance of interim arrangement3. Sale of properties by Saharas at a price less than circle rates4. Deposit of balance sale consideration for a property in SEBI account5. Various Interlocutory Applications (I.As) filedAnalysis:1. The judgment addresses the payment plan proposed by Saharas, with Mr. Kapil Sibal offering to pay the amount recoverable from Saharas as per a Payment Plan enclosed in an I.A. The counsels for SEBI and Amicus Curiae seek time to respond and file objections within four weeks. The Court schedules a hearing on the matter for a later date.2. Regarding the continuance of the interim arrangement, Mr. Kapil Sibal requests for the interim arrangement made by previous orders to continue. The Court directs the Saharas to deposit a further amount in the Sahara SEBI Refund Account, failing which the contemnors will face imprisonment. The Court extends the interim arrangement till a specified date.3. The judgment discusses the issue of selling properties by Saharas at a price less than circle rates. Mr. Sibal argues for relaxation of the condition imposed by the Court on the sale price of properties. The Court declines to modify the rate but allows Saharas to apply for permission to sell at a lower price in specific cases.4. In the context of a property sale, SEBI's counsel mentions a pending sale where the purchaser has not deposited the balance amount. Mr. Sibal is given time to verify and ensure the deposit of the balance sale consideration in the SEBI account. The Court prohibits the execution of the sale deed without the deposit being made.5. The judgment also addresses various Interlocutory Applications (I.As) filed, including notices issued, applications withdrawn, and requests for time to file objections. Counsel for the parties are granted time to respond, and hearings are scheduled for specific dates. The Court allows the withdrawal of certain applications and reserves liberty for seeking redress in appropriate proceedings.This detailed analysis provides insights into the key issues addressed in the judgment, including the proposed payment plan, interim arrangements, property sale conditions, deposit of sale consideration, and the handling of various Interlocutory Applications filed in the case.