2018 (2) TMI 1420 - SC - Companies Law

Valuation of properties - company in liquidation - symbolic possession of the properties - Held that - (i) The Official Liquidator, with the guidance of the Court Receiver and after obtaining appropriate directions from the learned Company Judge in consultation with Justice A.S. Oka, can go ahead to sell the movable properties and, thereafter, proceed to sell the immovable properties which find mention in paragraph (a) of the prayer clause. (ii) The amount spent by the Official Liquidator and the Court Receiver shall be reimbursed by the SEBI after getting approval from the learned Company Judge in consultation with Justice A.S. Oka and due intimation thereof shall be given to the contemnor. (iii) The symbolic possession of the properties of the Aamby Valley Limited taken by the Court Receiver, Bombay High Court from 11th to 14th December, 2017, stands confirmed. (iv) The Court Receiver is conferred with all the powers under the Code of Civil Procedure to deal with all the situations and events prevailing and occurring in Aamby Valley City on an almost daily basis and/or in relation to its properties so that the actions already taken and/or proposed to be taken are not impeded or obstructed in any manner by any person. (v) The Court Receiver is permitted to take such actions as may be necessary for compliance of the orders and directions passed by this Court in respect of movable and immovable properties situate in the Aamby Valley City and also appoint the Aamby Valley Group of Companies or any of them or any other agency as agents of the Court Receiver on terms and conditions to be determined by the Court Receiver. (vi) The Court Receiver is also authorized to engage and retain the services of existing professionals, including Advocates, Agencies, Architect, Chartered Accountants and Engineers to maintain Aamby Valley City and to ensure that no encroachments take place. (vii) It shall be the duty of the Court Receiver to see that the valuation of the properties does not reduce and the auction, as directed today, shall take place in a peaceful manner. The steps taken by the Court Receiver shall be put forth before the learned Company Judge, who shall take a decision in consultation with Justice A.S. Oka. (viii) As this Court is in seisin of the matter, no other court in the country shall entertain any litigation pertaining to Aamby Valley City. On a query being made, Mr. Khambatta, learned senior counsel, submitted that after due survey is made, the sale proceeding shall start and it may take approximately two months. Let the matter be listed at 3.00 p.m. on 19th April, 2018

Summary

Issues:
1. Confirmation of symbolic possession of Aamby Valley City properties.
2. Appointment of Court Receiver's powers and actions for compliance.
3. Selling of movable and immovable properties.
4. Reimbursement of expenses by SEBI.
5. Jurisdiction of Supreme Court over Aamby Valley City litigation.

Confirmation of Symbolic Possession:
The Court confirmed the symbolic possession of Aamby Valley City properties taken by the Court Receiver in December 2017. The Court Receiver was granted powers under the Code of Civil Procedure to handle situations in Aamby Valley City and ensure compliance without obstruction. The Court directed the Court Receiver to maintain property valuation and oversee the auction process peacefully.

Appointment of Court Receiver and Compliance:
The Court authorized the Court Receiver to take necessary actions for compliance with the Court's orders regarding movable and immovable properties in Aamby Valley City. The Court Receiver was permitted to appoint the Aamby Valley Group of Companies or other agencies as agents, engage professionals, and ensure no encroachments occur. The Court Receiver's actions were subject to review by the Company Judge in consultation with Justice A.S. Oka.

Selling of Movable and Immovable Properties:
The Official Liquidator, with guidance from the Court Receiver, was allowed to proceed with selling movable properties first, followed by the immovable properties mentioned in the prayer clause. The Court directed the Official Liquidator to demarcate properties and sell them as individual plots or parcels to attract buyers effectively.

Reimbursement of Expenses by SEBI:
SEBI was instructed to reimburse the expenses incurred by the Official Liquidator and the Court Receiver, subject to approval from the Company Judge in consultation with Justice A.S. Oka. The Court emphasized the importance of notifying the contemnor about the reimbursement process.

Jurisdiction of Supreme Court:
To maintain the integrity of the ongoing litigation, the Court asserted its exclusive jurisdiction over all matters related to Aamby Valley City. It prohibited any other court in the country from entertaining litigation concerning Aamby Valley City. The Court scheduled a follow-up hearing to monitor the progress of the sale proceedings.