2020 (8) TMI 399 - HC - Insolvency and Bankruptcy

Court grants possession after legal battles under SARFAESI Act and IBC, leading to settlement and decree.

The court allowed the application under Section 13(4) of the SARFAESI Act against the suit property, leading to ICICI Bank taking possession. Legal ... Permission to hand over the title documents and possession of the suit property - initiation of CIRP - satisfaction of the entire debt of the plaintiff, as per Resolution Plan - HELD THAT:- Consequent to the aforesaid approval of the Resolution Plan by the learned NCLT, APPL infused ₹ 265 crores in Defendant No. 3, towards the payment of various costs and expenses and towards a one-time settlement of all claims and unclaimed debt against the corporate debtor. Consequent to the receipt of the said amount, the applicant/Defendant No. 2 issued a “No Dues Certificate” on 24th July, 2020. In terms of the resolution plan, Defendant No. 3 also paid all amounts due to the plaintiff, in the account of the applicant, in its name and trust, and a “No Dues Certificate” also stands issued by the plaintiff, in acceptance thereof. This fact is accepted by Mr. Manu Nair, learned counsel appearing for the plaintiff, who submits that the grievances, in the plaint, thereby stand redressed. The present application has been moved by the applicant, for permission to hand over the title documents and possession of the suit property, i.e. Plot No. 3, Bhagwan Das Road, New Delhi – 110001, to Defendant No. 3, i.e. M/s. Aditya Estates Private Limited. - Application allowed. Issues Involved:1. Application under Section 13(4) of the SARFAESI Act against the suit property.2. Disposal of SA 118/2018 by the learned DRT and subsequent appeals.3. Stay of proceedings before the learned DRT in WP(C) 2960/2019 and WP(C) 2962/2019.4. Application under Section 7 of the IBC for initiation of Corporate Insolvency Resolution Process.5. Challenge of the NCLT order by Mr. A.K. Jajodia.6. Approval of the Resolution Plan by the NCLT and change in management and ownership.7. Issuance of 'No Dues Certificate' and settlement of claims.8. Application for permission to hand over possession of the suit property.9. Disposal of the suit and issuance of decree.Analysis:1. The judgment involved an application under Section 13(4) of the SARFAESI Act against the suit property, which was mortgaged by Defendant No. 3 to ICICI Bank Ltd. The Defendant No. 3 moved the DRT, but no interim injunction was granted, leading to ICICI Bank taking physical possession of the property. Subsequent legal proceedings and appeals followed, ultimately resulting in the disposal of the matter by the DRT and the DRAT. The High Court also dealt with related writ petitions challenging these orders, which were stayed temporarily. The status quo was maintained until the final resolution of the case.2. Another significant issue was the application under Section 7 of the IBC for the initiation of the Corporate Insolvency Resolution Process against Defendant No. 3. The NCLT admitted the petition, leading to the appointment of an Interim Resolution Professional and the imposition of a moratorium under Section 14 of the IBC. Legal challenges were raised against this order, including appeals to the NCLAT and the Supreme Court, which upheld the NCLT's decision, establishing the financial creditor status of the plaintiff.3. The judgment also addressed the approval of the Resolution Plan by the NCLT, leading to a change in the management and ownership of Defendant No. 3. The Resolution Plan, approved by the Committee of Creditors, resulted in the payment of a substantial amount and the issuance of 'No Dues Certificates' by both parties. This led to the application for permission to hand over possession of the suit property, which was unopposed by the parties involved, as the debts were fully settled.4. Consequently, the High Court allowed the application, disposing of the suit as the amounts claimed against Defendant No. 3 were paid, and a 'No Dues Certificate' was issued. With the Resolution Plan approved and all dues settled, the suit was decreed accordingly, bringing the legal proceedings to a conclusion.