TaxTMI 
TaxTMI 
2026 (3) TMI 1081
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....006, Respondent No. 2 i.e. Mahendra Kumar Agarwal, the Bankrupt, had approached the Appellant herein to avail an unsecured loan facility and the Appellant in lieu thereof, had advanced an amount of Rs.2 Crores and subsequent to this, at the request of Respondent No. 2, had advanced more amount and the total amount thus advanced by the Appellant stood at Rs.30,51,44,225/- as it was payable on 31.03.2024, which was inclusive of the interest too. 4. Its owing to the aforesaid loan liability, the Respondent No. 2 i.e. the Bankrupt, offered to sell the properties and accordingly certain agreements for sale was entered into between Respondent No. 2 and the Appellant. 5. In the agreement for sale executed on 29.12.2017 in favour of the Applicant / Appellant, a certain piece of property Bearing No. C-6, admeasuring 1342 sq. yards situated at 'Mediciti Enclave' in Survey No. 90/P, Ghanpur Village, Medchal Mandal, Rangareddy District, Andhra Pradesh, was agreed to be sold as against the total debt of Rs.13,75,25,795/-. 6. Another agreement for sale dated 16.06.2017 was said to have been executed in favour of the Applicant / Appellant for sale of 21,002 equity shares of M/s. TCI Indu....
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....rupt, the same could not be excluded from the estates of the bankrupt. 10. It was contended that, since there was no valid transfer of title in pursuance to the so called agreement for sale, no claim to the contrary can be raised by the Applicant over those properties of the bankrupt and also because of the fact that, with respect to the shares which was alleged to have been covered by the agreement for sale dated 16.06.2017, IFCI Venture Capital Limited, was already having a pledge over those shares of the Bankruptcy and the same was well within the knowledge of the Applicant / Appellant as it could find reference from Para 15 of the agreement for sale dated 16.06.2017. Relevant para 15 of the Agreement for Sale dated 16.06.2017 is extracted hereunder:- "15. That the Vendor agrees that till the IFCI ventures Capital releases the shares, the Vendee shall have the sole right to acquire the 21,002 Shares out of the aforesaid Shares once the Demat account of the Vendor is unfreezed and the balance Shares out of the aforesaid Shares once the pledge upon the same is released by IFCI Venture Capital Funds Ltd (IFCI). The Vendor has further assured the Vendee that the Vendor s....
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....ellant's claim that, they had entered into a bona fide agreement for sale, of the property, and the fact of execution of the agreement for sale is not in dispute, because, the Bankrupt i.e. Respondent No. 2, has confirmed the same to Respondent No. 1 and further because it had also been admitted by Respondent No. 2 that, he has no right over the disputed property owing to the fact that, the bankrupt himself has disowned his rights over the property and the shares, which were the subject matter of agreement for sale which forms as the basis of the claim by the Appellant / Applicant. On the basis of the above, the Appellant claims an exemption for the said properties from being brought within the estate of the Bankrupt to be kept under the management of the Bankruptcy Trustee and from the Auction proceedings, which was to be held on 25.10.2025. 15. The Ld. Tribunal considered the rival contentions in context of the application preferred by the Appellant praying for exclusion of the property and shares covered by the agreement for sale to be excluded from the Bankruptcy Estate, and came to a conclusion that:- a. The Bankrupt admits the fact that he does not own the propert....
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.... by bringing on documents on record to show any effort made by the Appellant to get the Deed executed in compliance of Clause 20 of the agreement for sale. 17. In that eventuality, the logical conclusion, which could be drawn is, that in the absence of the Sale Deed having been executed within time on the basis of the two Agreements for Sale, in relation to the immovable property and the shares covered by it, the deemed presumption would be that, the valid title of the said Assets continues to be with the Bankrupt i.e. Respondent No. 2 and it would be treated as to be the property of the Bankrupt which is to be included in the assets to be auctioned by the Bankruptcy Trustee / Respondent No. 1. 18. It is settled principle of law which needs no detailed and specific reference, that in the light of the provisions contained under Section 17, to be read with Section 49 of the Registration Act, an unregistered document in relation to an immovable property, the registration of which has been made mandatory under law, will not be conferring any valid title on the Appellant, and furthermore, it cannot be even read in evidence for any purposes whatsoever in any judicial proceedings as....