2017 (2) TMI 416 - SC - Companies Law

Public auction - Attachment orders - Held that - We direct that the contemnors shall file a list of properties that can be put to public auction. Needless to emphasize that the properties suggested for public auction shall be free from any encumbrance. Needless to say, any encumbrance means it shall not be encumbered in any manner whatsoever. The said list be positively filed on or before 27th February, 2017, after giving a copy to the learned counsel for SEBI and Mr. Shekhar Naphade, learned Amicus Curiae. A copy of the same shall also be handed over to Mr. Maninder Singh, learned Additional Solicitor General and Mr. Rana Mukherjee, learned senior counsel appearing for the Union of India. At this stage, it is obligatory to note, as submitted counsel appearing for SEBI, which has been echoed in similar voice by Mr. Naphade, learned Amicus Curiae, that the contemnors who own a property situate at Aamby Valley City, Pune, Maharashtra, would be sufficient for realization of the whole amount. Mr. Venugopal, insisted that the property should be attached so that the contemnors shall make all endeavour to deposit the amount with SEBI. The said submission is seriously opposed by Mr. Sibal, learned senior counsel for the contemnors. Thus we are of the convinced opinion that the property situated at Aamby Valley City, Pune, should be attached and, accordingly, it is so ordered.

Summary

Issues: Compliance with court order for deposit, payment of principal sum, attachment of properties for auction.

Compliance with Court Order for Deposit:
The Supreme Court, after dismissing an application for time extension to deposit a specified amount, allowed the transfer of funds equivalent to the said amount from an account in a London bank. Subsequently, the contemnors handed over bank drafts and deposit slips to the SEBI counsel, fulfilling the court's order. The contemnors also provided a roadmap for clearing the principal amount by a specified date. Additionally, the SEBI filed an application for attaching the contemnors' properties.

Payment of Principal Sum:
The court deliberated on the payment of the entire principal sum, deferring the discussion on interest payment until after the principal amount's deposit. The contemnors were directed to list unencumbered properties for public auction by a specified date, emphasizing that the suggested properties must be free from any encumbrance. Notably, the court ordered the attachment of a property in Aamby Valley City, Pune, Maharashtra, belonging to the contemnors, as it was deemed sufficient for realizing the entire amount, despite opposition from the contemnors' counsel.

Attachment of Properties for Auction:
The court, based on submissions from the SEBI counsel and the Amicus Curiae, decided to attach the property in Aamby Valley City, Pune, belonging to the contemnors for ensuring the deposit of the amount with SEBI. This attachment was ordered to remain in force until the next hearing date. The court scheduled the matter for the next hearing and deferred consideration of interlocutory applications until then.