2017 (5) TMI 23 - SC - Companies Law

Reserved price for the purpose of auction - Held that - Regard being had to the submissions of the official liquidator and the affidavit that has been filed by the contemnor, we direct that the reserved price for the purpose of auction be fixed at ₹ 37,392 Crores. The Official Liquidator shall proceed in accordance with the Rules of procedure and prepare a draft terms and conditions and sale notice and the same shall be filed for our approval on 19.6.2017. The terms and conditions for the auction shall be finalised by Mr. Vinod Sharma, the Official Liquidator in consultation with Mr. Justice B.N. Agarwal, formerly a Judge of this Court. The official liquidator will be at liberty to avail the expertise of an expert for drafting the terms and conditions. The official liquidator shall remain personally present with his team, on the next date of hearing. List the matter at 10.30 a.m. on 19.6.2017. Be it clarified that the matter is directed to e listed on that day to scrutinise the action/steps taken in pursuance of the order passed today. Guilty of contempt - Held that - In pursuance of our earlier order, Mr. Prakash Swami, the CP 412/2012 power of attorney holder for M.G. Capital Holdings is present. The sum of ₹ 10,00,00,000/- (Rupees ten crore only) has not yet been deposited. In view of the aforesaid, he is in violation of the order passed by this Court. Having heard his explanation which is not satisfactory, we hold him guilty of contempt of this Court and convict him accordingly. Regard being had to the explanation offered, we think it appropriate to impose a simple imprisonment for a terms of one month. The Police personnel present in Court are directed to produce Mr. Prakash Swami before the concerned Registrar of this Court, who shall issue a warrant so that he can be put in Tihar Jail to serve the aforesaid sentence.

Summary

Issues:
1. Valuation of immovable assets in Aamby Valley City.
2. Submission of post-dated cheques by the contemnor.
3. Fixing reserve price for auction.
4. Contempt of court by power of attorney holder.
5. Sentencing the power of attorney holder.

Valuation of Immovable Assets in Aamby Valley City:
The Official Liquidator presented a detailed report on the valuation of assets, including land and buildings within Aamby Valley City. The report outlined the Fair Market Value, Realizable Value, and Distress Value of the assets. The valuation process considered factors such as Ready Recknor Rate and discounting for the current real estate market scenario post-Demonetisation. The total value of immovable assets, including land and buildings, was calculated and presented in the report.

Submission of Post-Dated Cheques by the Contemnor:
The contemnor, Subrata Roy Sahara, submitted post-dated cheques towards the payment of instalments owed. The cheques, totaling a significant amount, were presented to SEBI Refund Account. The contemnor provided an undertaking to ensure the honouring and encashment of the cheques on the due dates. The submission of these cheques was a crucial aspect of the ongoing proceedings to address the outstanding dues.

Fixing Reserve Price for Auction:
In light of the valuation report and submissions made, the Court directed the fixing of a reserve fair price for auction at ?37,392 Crores. The Official Liquidator was instructed to proceed with auction formalities, including preparing draft terms and conditions, sale notice, and seeking approval from the Court. The terms and conditions for the auction were to be finalized in consultation with a former Judge of the Court, ensuring compliance with procedural rules.

Contempt of Court by Power of Attorney Holder:
The Court addressed the violation of an order by a power of attorney holder, who failed to deposit a specified sum. After hearing the explanations, the Court found the individual guilty of contempt and convicted him accordingly. Despite the individual's assertions of personal circumstances, the Court imposed a one-month simple imprisonment term. The individual was to be produced before the Registrar for issuing a warrant to serve the sentence at Tihar Jail.

This judgment encompassed various critical issues, including asset valuation, compliance with payment obligations, auction procedures, contempt proceedings, and sentencing for non-compliance. The Court's meticulous approach in handling these complex legal matters demonstrated a commitment to upholding the rule of law and ensuring accountability in financial transactions and court directives.