2017 (8) TMI 6 - SC - Companies Law

Auction notice - proclamation for the auction of Ambey Vally - Held that - It is directed that the respondent-contemnor shall deposit ₹ 1500 crores (Rupees fifteen hundred crores only) which would include the balance amount of today by 7.9.2017. After due consideration, we have granted time till 7.9.2017, though Mr. Sibal, with all humility at his command, prayed for fixing the date some time in October, 2017. Though we appreciate the humble submission but we are not in a position to accede to the same. The grant of time, without any steps taken by the Mr. Tushar Gupta, Adv. Mr. Nizam Pasha, Adv. Mr. Simaranjeet Singh, Adv. Court, would tantamount to giving indulgence. Indulgence has the propensity to give rise to procrastination which is the murderer of justice. Therefore, we are disposed to think that the first two steps for sale of Ambey Vally Project shall be undertaken within this time and for the same we approve the draft sale notice submitted by the Official Liquidator and direct him that he shall take first two steps by updating the dates. The official liquidator shall publish the sale notice as given by him and the notice shall be published on 14.8.2017. The steps which are required to be taken for the publication of the sale notice are allowed. The amount that is required for publication shall be given from the SEBI Sahara Account. Mr. Pratap Venugopal shall see that the moment the official liquidator produce a letter, the amount shall be released to the official liquidator. The respondent-contemnor shall remain personally present in Court on the next date of hearing.

Summary

Issues:
1. Extension of time for encashing a cheque amount by SEBI.
2. Auction of properties to recover dues.
3. Deposit of remaining amount by the respondent-contemnor.
4. Granting of time to deposit the amount by the respondent-contemnor.
5. Publication of sale notice and steps required for auction process.
6. Presence of respondent-contemnor and official liquidator in court.
7. Continuation of interim order.
8. Withdrawal of certain applications.
9. Release of passport seized from an individual.

Extension of Time for Cheque Encashment:
The Supreme Court directed SEBI to produce a cheque of a significant amount in the relevant bank account, warning of consequences if dishonored. The Court approved terms and conditions for auctioning a property, emphasizing the need for realization of funds promptly.

Auction of Properties:
SEBI raised objections to the respondent-contemnor's proposal to deposit a certain amount, while the respondent argued for more time citing the valuation of attached properties. The Court directed the respondent to deposit a substantial sum by a specified date, highlighting the importance of taking immediate steps for property auction to prevent delays in fund recovery.

Deposit of Remaining Amount:
The respondent-contemnor was directed to deposit a specific sum, including the balance amount, by a set deadline. The Court rejected pleas for further extensions, stressing the need for prompt action to avoid prolonging the proceedings.

Granting Time for Deposit:
After considering arguments, the Court ordered the respondent to deposit a substantial sum by a specified date, rejecting requests for a later deadline. Emphasis was placed on avoiding procrastination and ensuring timely progress in the auction process.

Publication of Sale Notice and Auction Steps:
The Official Liquidator was directed to publish a sale notice by a certain date, with expenses to be covered by SEBI's Sahara Account. The Court emphasized the need for immediate action in the auction process and required the respondent-contemnor's presence in court for the next hearing.

Presence in Court and Interim Order:
The respondent-contemnor and the Official Liquidator were instructed to be present in court for assistance. The interim order was to remain in effect until further notice.

Withdrawal of Applications and Passport Release:
Certain applications were withdrawn upon request. The Court directed the release of a seized passport after the individual served their sentence, with the Union of India undertaking to facilitate the process as required.