2017 (4) TMI 932 - SC - Companies Law

Auction notice - deposit with SEBI Sahara Refund Account not been done - Held that - As no amount has been deposited by the contemnor, we are inclined to go ahead with auction for the Aamby Valley City near Lonavala, Maharashtra. It is submitted by Mr. Shekhar Naphade, learned Amicus Curiae assisting the Court in the matter that the Official Liquidator of the Bombay High Court may be appointed to conduct the sale. Mr. Arvind P. Datar, learned senior counsel being assisted by Mr. Pratap Venugopal, learned counsel appearing for the SEBI shall provide the necessary details of the said property to the Official Liquidator, who with his team, shall make the valuation and proceed with the auction. Learned counsel appearing for the contemnor shall provide all the necessary details of the property also to the Official Liquidator within forty-eight hours. If the Official Liquidator requires some amount, which is reasonable, as agreed to by Mr. Datar, he can make a requisition for the same, and the same shall be paid from the SEBI Sahara Refund Account. Mr. Pratap Venugopal, learned counsel assisting Mr. Datar shall forward this order to the Official Liquidator of the Bombay High Court and also all the details that of the Aamby Valley City near Lonavala, as submitted by the contemnor to this Court, so that the Official Liquidator can verify from the contemnor and, thereafter, proceed in accordance with law. If the contemnor, as directed herein-above, gives the necessary details within forty-eight hours from the date of information, the Official Liquidator shall report to this Court directly. Let the matter be listed at 2 p.m. on 27th April, 2017, on which day, the contemnor, Mr. Subrata Roy Sahara, shall remain personally present before this Court. Dr. Prakash Swamy, who has filed the affidavit in I.A. No.247 of 2017, shall also remain personally present at 2 p.m. on 27th April, 2017 before this Court.

Summary

Issues: Contempt of Court - Failure to comply with court orders, Auction of property for recovery of dues, Personal presence of parties before the court.

Contempt of Court - Failure to comply with court orders:
The judgment addresses the issue of contempt of court due to the failure of the contemnor to comply with court orders. The contemnor was directed to deposit a significant sum in the SEBI Sahara Refund Account, which was not done. As a result, the court decided to proceed with the auction of the Aamby Valley City near Lonavala, Maharashtra. The Official Liquidator of the Bombay High Court was appointed to conduct the sale, and the contemnor was instructed to provide all necessary details of the property to the Official Liquidator within forty-eight hours. The court warned that if the contemnor failed to comply, non-bailable warrants of arrest could be issued.

Auction of property for recovery of dues:
In the context of recovering dues, the court ordered the auction of the Aamby Valley City near Lonavala, Maharashtra, as the contemnor had not deposited the required amount. The Official Liquidator was tasked with conducting the sale, and both the SEBI and the contemnor were directed to provide necessary details of the property to facilitate the auction process. Any reasonable amount required by the Official Liquidator for the auction was to be paid from the SEBI Sahara Refund Account. The court emphasized the importance of cooperation and compliance with its directions to ensure the effective recovery of dues.

Personal presence of parties before the court:
The judgment also highlighted the requirement for the personal presence of the contemnor and another individual before the court on a specified date. The court directed the contemnor and the individual to be present at 2 p.m. on the designated day. Additionally, specific instructions were given to ensure the personal presence of the individual, including informing the Superintendent of Police of Chennai. The court underscored the importance of adherence to its directives and warned against any attempts to evade compliance, emphasizing the gravity of the situation and the consequences of non-compliance.

This judgment by the Supreme Court of India addresses issues related to contempt of court, failure to comply with court orders, the auction of property for recovery of dues, and the personal presence of parties before the court. It emphasizes the consequences of non-compliance with court orders, directs the auction of property for recovery of dues, and mandates the personal presence of the parties involved. The court stresses the importance of cooperation and compliance to ensure the effective resolution of the matter and warns against any attempts to evade responsibilities or obligations set forth by the court.