TaxTMI 
TaxTMI 
2020 (2) TMI 1421
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....A, Amrita Shergill Marg, New Delhi comprising of land ad-measuring 2227 sq. mtrs. and from creating third party interest therein; (ii) permanent injunction restraining the defendants, from changing the shareholding of JKPL by increasing the authorized share capital of JKPL and from issuing additional or subscribing un-issued 800 shares from authorized share capital of 2000, of JKPL; and, (iii) mandatory injunction directing the defendants to transfer 300 shares of JKPL from MMK to Natasha. 2. CS(OS) No.1321/2006 came up first before this Court on 19th June, 2006 when, while issuing summons thereof, vide ex partead- interim order, the defendants were restrained from dispossessing Natasha from property no.15A, Amrita Shergill Marg, New Delhi and the parties directed to maintain status quo qua the title and occupancy of the property.Vide subsequent order dated 21 st April, 2010, the applications for interim relief were disposed of directing, that (i) Natasha continues living in the guest annexeof the property and not interfere in the main building where MMK and Rishab Kohli (Rishab), sonof Natasha and MMK,were living except that Natasha could go to Rishab‟sbed room and stay w....
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....aid application was allowed vide order dated 26th February, 2014, appointing Kumkum and Vinay as guardian ad litem of MMK. 7. Else, suffice it is to record that applications have been filed from time to time and CS(OS) No.1321/2006 has been languishing at that stage, with part evidence only of Natasha being recorded therein. 8. CS(OS) No.1435/2006 has been filed by Rishab against his father MMK for partition, of (i) property no.15A, Amrita Shergill Marg, New Delhi; (ii) Printers House Pvt. Ltd. (PHPL); and, (iii) eight acres of land in District Tehri Garwal, village Singtali Patti, Dogee, Tehsil and Pargana Narendrapur, Uttaranchal, equally between Rishab and MMK. 9. It is the case of Rishab in CS(OS) No.1435/2006, that (i) he was born on 11th May, 1997 and at the time of institution of the suit was still a minor and acting through his mother Natasha; (ii) MMK and Natasha were married on 14th November, 1994; (iii) MMK is the head of Hindu Undivided Family (HUF) comprising of MMK and Rishab; (iv) the parties belong to an established business family, patriarch whereof was Late Sh. Krishan Dass Kohli; Krishan Dass Kohli had three children, Ms. Vijay Kohli, who died a spinster....
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...., 2014. 11. It may be stated that MMK contested CS(OS) No.1435/2006, inter alia pleading that (i) while only members of the Kohli family had shares in PHPL, JKPL, Sun Flower Enterprise and M/s Kohli Graphics Systems, the respective shares were distinct and independent and from self-acquired income held by individual members separately; (ii) only 160 shares of PHPL belong to the HUF of which MMK was the Karta and the remaining shares held by him were in his individual capacity; (iii) MMK had been meeting the expenses of Rishab; (iv) PHPL, JKPL, Sun Flower Enterprises and M/s Kohli Graphics Systems were not part of any HUF and MMK had paid consideration for acquisition of shares in these entities and hence the rights and interests in these entities were personal self-acquired properties of MMK; (v) the land at Uttaranchal was the sole and exclusive property of MMK who had purchased the same from his own means; rather the adjoining land had been purchased by Natasha; (vi) there was no partition of HUFs in the Memorandum of Family Settlement dated 16th October, 1995; the said Memorandum of Family Settlement was executed only to ensure that MMK and Joginder obtain full control over s....
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....r thereof; (ii) the PHPL, without specific order of the Court, shall not issue new capital or affect any change in shareholding or affect any change in the Board of Directors (save for re-appointment of the Directors who were eligible therefor) or sell, transfer or encumber in any manner any immovable property or make any borrowing (except for the purpose of business and from banks and financial institutions from which it already had arrangement in this respect)or affect any change in the Memorandum / Articles; and, (iii) the PHPL shall serve notice on Natasha, in CS(OS) No.1137/2014, of any AGM / Extraordinary General Meeting, in accordance with law.Though CS(OS) No.1137/2014 was disposed of in terms of common consent order dated 25th April, 2014, but IA No.15431/2015 of Rishab for modification of the order dated 25th April, 2014 is pending and the said application in the said suit is being taken up along with other pending litigations. 16. At this stage, it is also apposite to take up CS(OS) No.2161/2015. 17. CS(OS) No.2161/2015 has been filed by Kumkum, Vinay and MMK, against Natasha and Rishab, seeking, (a) appointment as guardian of person and property of MMK; and, (b) p....
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....ed by the defendantpursuant to partition of the HUF vide Family Settlement dated 16thOctober, 1995 and are consequently, co-parcenary/ancestral/HUF propertiesand whether the plaintiff has a share in the said properties? If so, to what extent? OPP (iii) Whether the suit properties are the self-acquired properties of the defendant? OPD (iv) Whether the suit as filed is not maintainable? OPD (v) Whether the suit has not been properly valued for the purposes of Court fees and jurisdiction? OPD (vi) Whether the plaintiff is entitled to a preliminary decree and/orfinal decree of partition dividing the properties (i) 15A, Amrita Shergill Marg, New Delhi (ii) Printers House Ltd., 10, ScindiaHouse,Connaught Place, New Delhi, (iii) Eight acres of land in District TehriGarwal, Village Singtali Patti, Dogee, Tehsil and Pargana Narendrapur,Uttaranchal? If so, to what share would the plaintiff and the defendantbe entitled? OPP (vii) Relief." 25. Vide common order dated 17th January, 2017 in all the four suits, finding, that the entire emphasis of the parties and the counsels had been and continued to be on applications, with further proceedings in the suits....
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....f MMK are pending consideration. 29. On 13th March, 2019, the counsel for MMK, in response to the contentions aforesaid of the senior counsel for Natasha stated, that (i) the dispute as to who should be the guardian of person and of the properties of MMK, still remains for adjudication; (ii) Natasha was not a fit person to be entrusted with such guardianship of MMK as there were / are disputes between Natasha and MMK; (iii) even Rishab had instituted a suit, claiming adversely to the rights of MMK in property no.15A, Amrita Shergill Marg, New Delhi and thus was also not a proper person to be appointed as the guardian of person and properties of MMK till his demise or till his health continued as it has been since July, 2013; (iv) though vide the Will dated 13th September, 2006 MMK bequeathed his estate for the benefit of Rishab, but in three trustees until Rishab reached his 30 th birthday; (v) Rishab, for this reason also was not a fit person to be appointed as guardian of person and properties of MMK inasmuch as he would not get the estate even on demise of MMK, till attaining 30 years of age; and, (vi) that Arvind Chadha and Vimal Chandra Hoon, who were the erstwhile Director....
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.... of income. 4. In the recent past she has started severely poisoning Rishab‟s mind and restraining him from seeing me. She now even sleeps with his in his room and is generally trying to drive a wedge between him and me. A complete breakdown in our relationship took place when she filed a series of legal proceedings without any provocation, and without cause and without any warning or discussion and obtained an ex parte restraining order. In meeting her every wish and providing her every conceivable luxury, I know that I did not heed the advice of my elders and my well-wishers and this inevitably lead to a reverse effect - her wanting more and more. It is now clear to me that she wants nothing but my wealth and my assets. After careful consideration of the above and other circumstances which I have mulled over for several weeks and after discussions with my friends, I have decided to make this will. 5. I hereby declare and direct that no part of my estate or any benefit therefrom will go to Natasha. I inserted Natasha‟s name as my nominee in my life insurance policies and in order places such as bank accounts, mutual funds, etc. I hereby declare that n....
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....C Hoon, aged 69 years resident of W-175, Greater Kailsh-II, New Delhi; c. Mr. Virendar Nath Koura, Son of Dr. D N Kaura, aged 66 years, Resident of 7, NavjeevanVihar, New Delhi (hereinafter referred to as "Trustees") 9. The trustees will use the trust funds in such manner in their discretion as they think fit for education, upkeep, upbringing, marriage and all expenses that they in their wisdom think appropriate to incur for Rishab. As far as possible they will use only the interest or earnings. However, I place no restrictions on them and my trustees will have the power to use the capital asset and income as they think appropriate. The trustees will have the power to invest the funds in appropriate assets securities including land and building and will do everything that I or any prudent person would have done for the protection of the estate. 10. The quorum for the trust will be two. In the event that any of the trustees is not able to act by reason of his non-availability, death or incapacity, the remaining trustees will choose another trustee immediately, so that at all times, there are three trustees. In the event of a trustee wishing to resign, he w....
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....s will and failing him Mr. Arvind Chadha. The executor will gather together all my assets wherever found, pay all liabilities if any, and will hand over the balance estate to the body of the trustees referred to above. 17. The executor and trustees can at their discretion, appoint such professionals as lawyers, chartered accountants etc. as may be necessary and will pay them out of the trust fund. They will also be entitled to debit to my estate any reasonable fee or expenses that they may incur in discharge of their duties." 34. The senior counsel for Natasha and Rishab informed that besides the aforesaid litigations, the following other litigations / proceedings are pending between the parties: (i) Petition filed by MMK seeking nullity of his marriage with Natasha on the ground that Natasha was already married to one Mr. Kai Boccagna at the time of her marriage with MMK. (ii) Criminal complaint filed by MMK against Natasha of the offence of bigamy. (iii) Criminal complaint filed by MMK against Natasha of the offence of trespass. (iv) Petition filed by Natasha against the order of the Family Court on her application under Section 24 ....
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....nd Vinay towards Natasha and Rishab, in disregard of the wishes of MMK; and, (g) the issue involved in the appeal preferred by the heirs of Joginder can be settled in those proceedings. 36. The senior counsel for Natasha and Rishab otherwise contended that, (a) under the Memorandum of Family Settlement dated 16th October, 1995 between Krishan Dass Kohli (being the father of MMK and Joginder) and Vijay Kohli (being the sister of MMK and Joginder) of the first part, MMK and Natasha of the second part and Joginder, his wife and son of the third part, 600 shares representing 50% of the issued and subscribed share capital of JKPL were in the name of MMK and the other 600 shares representing the balance 50% of the share capital of JKPL were in the control of Joginder; the 600 shares held by MMK in JKPL were simultaneously transferred to Monat Developers Pvt. Ltd., in which MMK and Natasha are the only shareholders; (b) the aforesaid Memorandum of Family Settlement dated 16th October, 1995 was incorporated in the decree in Suit No.857/1993, then pending between the parties to the Memorandum of Family Settlement; (c) under the aforesaid Memorandum of Family Settlement dated 16thOctober,....
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.... dated 16th October, 1995 were to be transferred to Monat Developers Pvt. Ltd. but were not transferred; (q) Natasha is willing to give an undertaking that upon MMK being shifted to property no.15A, Amrita Shergill Marg, New Delhi to reside with Rishab, she will not access MMK or interfere in his living in the said house; (r) Kumkum and Vinay can be permitted access from time to time in property no.15A, Amrita Shergill Marg, New Delhi, to satisfy themselves of the well being of MMK and also to take him to family functions; (s) a provision can be made from the home care facility of Apollo Hospital or Max Hospital, to take care of medical and health needs of MMK; (t) Dr. Hazooria, General Physician of MMK and his family can continue to attend MMK in property no.15A, Amrita Shergill Marg, New Delhi; (u) Rishab is 22 years of age and has graduated in Business Management and can look after the affairs of the PHPL, which over the years, from a hugely successful profit making company is incurring losses; (v) Rishab is the only person most interested in the financial health of the PHPL, being the ultimate beneficiary thereof; and, (w) at present there are no Directors of the PHPL. 37. T....
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.... abroad, it was impossible for him to constantly monitor or ascertain the condition of MMK; (xii) that it is wrongly being contended that Vinay is asking for Rs. 1 lac per month to visit MMK; attention is drawn to the common consent order dated 21st August, 2015 in all the proceedings aforesaid where it was agreed that an amount of Rs. 2 crores per annum be defrayed for meeting the expenses of MMK including expenses towards upkeep, medical care, legal expenses, rental etc. from the monies of PHPL; the sum of Rs. 1 lac per month was for buying the day-to-day needs of MMK; (xiii) that expenses of MMK having been borne by the PHPL, a company of MMK himself, Natasha and Rishab have no locus to make a grievance with respect thereto; (xiv) attention was drawn to the report dated 18 th October, 2015 of the retired Judge of this Court appointed as Observer as aforesaid, to the effect that there were rival camps amongst the higher staff of the PHPL with lack of cooperation and to two photographs of MMK with Kumkum and Vinay and their family members to contend that he had started responding and was on the mend and expressed happiness in his surrounding; (xv) attention was invited to the repo....
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....ceedings filed by MMK for declaring his marriage with Natasha to be a nullity, if decided against the Natasha, Natasha will not be left with any claim under the Memorandum of Family Settlement dated 16th October, 1995; (xxvii) attention is drawn to the extract of Board Meeting of the PHPL on 6th August, 2015 to contend that Rishab had attempted to override the orders of the Court;attention is also invited to the letter dated 10th August, 2015 of the PHPL to ICICI Bank Ltd. signed by Rishab as Director, to contend that Rishab was misrepresenting himself to be the Director; (xxviii) attention is invited to the certificate dated 9th December, 2013 of SGRH with respect to MMK, opining that "such patient recovers much faster in familiar surrounding like their own home"; (xxix) that it is therefore incumbent that the present state should continue and be not disturbed; (xxx) that as per the admitted Will of MMK, Natasha has no right to reside in propertyno.15A, Amrita Shergill Marg, New Delhi; (xxxi) Natasha cannot take benefit of residing in the property without performing her obligations as wife; (xxxii) that the admitted Will of MMK in any case has not taken effect; (xxxiii) that the W....
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....OS) No.1321/2006 and CS(OS) No.1453/2006 that it could not be said that MMK had intent of disowning his own son or denying him support or depriving him of his wealth upon the son turning major and the stand taken by Kumkum and Vinay as guardian of MMK was not reasonable; (k) all litigations instituted by Rishab against MMK were instituted by Natasha during his minority; (l) Kumkum and Vinay have been litigating using MMK‟s money, to prevent Rishab from having a say in the PHPL; (m) Rishab, on attaining majority has withdrawn one of the suits filed on his behalf during his minority; (n) Kumkum and Vinay have been wanting lumpsum amounts instead of actual expenses incurred and have even asked for a new car although two cars of PHPL have been provided for MMK; (o) Kumkum and Vinay have also not been safeguarding the income tax affairs of MMK and for which steps have been taken by Rishab; (p) of the four bed rooms stated to be in the flat in occupation of MMK, three are occupied by servants and are unfurnished; (q) the medical records of SGRH also show that MMK was got discharged on relatives risk under the signatures of the servant; (r) exorbitant rent of Rs. 2 lacs per month is....
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....re is no change and the condition of MMK remains the same; (ii) Mental Healthcare Act, 2017 has no application per Section 126(2)(f) thereof; (iii) reliance is placed onIndira Vs. K.P.V. Menon (2010) SCC OnLine Ker 4978 (DB) and Amit Toppo Vs. None (2011) SCC OnLine Ori 174; (iv) Rishab has not offered to withdraw the partition suit; (v) similarly Natasha has also not offered to withdraw the suits filed by her; (vi) it is proposed that all litigations be ordered to be kept in abeyance and living expenses of MMK be reduced from Rs. 2 crores per annum to at about Rs. 50 lacs to Rs. 60 lacs and MMK be allowed to continue as he has been residing, as the said arrangement has worked well for him till now; (vii) MMK is close to his sisters and the love and affection of the sisters is working as therapy for him; (viii) Kumkum and Vinay won‟t have access to property no.15A, Amrita Shergill Marg, New Delhi; (ix) the interest of Natasha and Rishabare intertwined; (x) Kumkum and Vinay do not feel secure at property no.15A, Amrita Shergill Marg, New Delhi; (xi) there is a huge trust deficit; (xii) arrangement be made for protection of the estate of MMK and the Observer presently appointed....
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....any improvement. It is thus not deemed necessary to keep the present as well as other litigations pending by adjourning the same sine die or by keeping the same in abeyance. The possibility of MMK in future reverting to his pre July, 2013 state and desirous of continuing the litigations can be addressed by, while disposing of the litigations, permitting the parties to revive some of the litigations. 44. Else, it is felt that in view of the present mental state of mind of MMK and as long as the same continues and in view of the offer of Natasha and Rishab, the cause of action for the litigations have disappeared. 45. It is accordingly ordered: A. CS(OS) No.1321/2006 is dismissed as withdrawn with liberty to Natasha to sue afresh if a fresh cause of action arises. B. CS(OS) No.1435/2006 is dismissed as withdrawn with liberty to Rishab to sue afresh if cause of action arises. C. There is no need for modification of the order dated 25th April, 2014 disposing of CS(OS) No.1137/2014 and the applications filed therefor are also disposed of. D. CS(OS) No.2161/2015 is disposed of in terms of the order hereinbelow, with liberty to the parties to from....
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....pect in the best interest of MMK and / or rights of MMK and / or of MMK and Natasha in property no.15A, Amrita Shergill Marg, New Delhi under the Memorandum of Family Settlement dated 16th October, 1995. In the event of the decision being for freehold conversion, Rishab is authorised to sign/execute/present for registration, all documents/deeds in this regard, on behalf of MMK including on behalf of MMK as shareholder/director of JKPL. 46. I next take up the arrangement for future living and care of MMK. Having heard the counsels, I am of the view that: (i) At present it is in the best interest of MMK to continue living as he has been living for the past sometime and for the said status to continue. I have however met Kumkum and Rishab in Chamber and counseled them to independently of animosity between Natasha on the one hand and Kumkum and Vinay on the other hand, builda relationship in the best interest of MMK. It is not in dispute that Rishab is the son of brother of Kumkum and Vinay and there is no reason why Rishab, now having attained majority, should not make all possible attempts to forge a relationship anew with his paternal aunts and their families, forgetting....
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....iling rents and if so, either the rent being paid on behalf of MMK be re-negotiated or MMK be shifted to another suitable accommodation. (ix) The Observer is also requested to, in presence of Rishab, Kumkum and Vinay, understand the need for number of servants/caregivers for MMK and salary thereof and fix the appropriate number of servants/caregivers and their salary. The said salary be disbursed directly by PHPL through Rishab, to the servants/caregivers and Rishab is made personally responsible for timely payment thereof. (x) The task having been entrusted to an Observer of the Court, the findings of the Observer in this regard shall bind the parties and the liberty hereinafter granted to the parties to apply to this Court shall not extend to such matters. (xi) The electricity bills for the accommodation in occupation of MMK shall be submitted to PHPL and be paid directly by PHPL, ensuring that there is no disconnection of electric supply. (xii) One car equivalent to Ford / Octavia Superb, in a good running condition, shall continue to be provided by PHPL for use of MMK along with a driver. If the vehicle has any breakdown incapable of rectific....
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....he Kumkum and Vinay has fairly consented to Rishab becoming a Director in the PHPL. As far as the other Director/s of PHPL is concerned, Mr. Arun Kathpalia, Senior Counsel has graciously consented to,as nominee of the Court, assist in identifying the mode of appointment and selection thereof, considering the nature of business of PHPL and its requirement. Steps in that regard be taken by Rishab with the consent in writing of Mr. Arun Kathpalia, Senior Advocate. (b) Mr. Arun Kathpalia, Senior Advocate is also requested to from time to time, assess the need if any of change of board membersof PHPL and if change in management is deemed necessary to also advice Rishab qua the same and Rishab to, with the consent of Mr. Arun Kathpalia, effect such change. (c) Rishab,along with other directors of PHPL, to conduct the affairs of PHPL and manage the business of PHPL, in the best interest of its shareholders and with liabilities as guardian appointed by this Court of interest of MMK in PHPL. (d) The fixed deposits of PHPL / MMK to be continued and renewed to yield the maximum returns, to be reinvested, if not required to meet expenses of MMK in terms of above and ....