Allowed

S.S.Wagle v. O.L.of M/S.Consolidated Foundation (I)Ltd. (in Liqn)

Bombay HC18 Aug 2005CA/75/2004

Case brief

AI extract

What is this about?

This application sought vacant possession of premises from the Official Liquidator based on an appellate court order. The court granted possession on terms including an undertaking to hold possession subject to pendent lite proceedings and depositing a lump sum in court.

What did the court decide?

Posession of premises handed over subject to undertaking and deposit of Rs. 7,50,000/- in court.

S.S.Wagle Vs O.L.of M/S.Consolidated Foundation (I)Ltd… — Company and Corporate | Bombay HC (2005)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
 COMPANY APPLICATION NO.75 OF 2004
 IN

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 COMPANY PETITION NO.319 OF 1993

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 Gujarat Lease & Finance Ltd. ..Petitioners.
 Vs.

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 The Official Liquidator
 Consolidated Foundation

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 (India) Ltd. (In Liqn.) ..Respondents.

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 Ms.Z.Irani i/b.Aras & Co. for the Applicant.
 Ms.K.V.Gautam, Dy.Official Liquidator present.

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 CORAM: A.M. KHANWILKAR, J.
 DATED: 18TH AUGUST, 2005

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P.C. :

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 1. Heard counsel for the Applicant and

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 representative of the Official Liquidator. By this

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 application, the applicant seeks direction against

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 the Official Liquidator to hand over vacant and

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 peaceful possession of the premises situated at 108,
 Owners Industrial Estate, Gabrial Road, Mahim (W),
 Mumbai-16 in terms of order passed by the Appellate

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 Bench of the Small Causes Court, Mumbai dated
 17.4.2003 in Appeal No.523 of 2001. The applicant

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 is ready to deposit a sum of Rs.6,94,000/- payable

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 to the Respondents being the deposit lying credited

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 with the applicant after adjustment of the
 compensation at the rate of Rs.1000/- per month and
 payable by the Respondents from 1.6.1999 to 1.2.2004

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 in terms of the agreement, as directed by the
 Appellate Bench of the Small Causes Court, Mumbai in

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 its order dated 17.4.2003.

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 2. It is not in dispute that the premises are

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 presently lying unoccupied and unused though in
 possession of the Official Liquidator. Indeed, the
 Official Liquidator is taking steps to challenge the
 order passed by the Appellate Bench of the Small
 Causes Court dated 17.4.2003 in Appeal No.503 of
 2001. However, in my view, the offer given by the
 applicant seems to be reasonable and, if accepted,
 would meet the ends of justice. According to the
 applicant, the applicant will take over possession
 of the abovesaid premises from the Respondent
 Official Liquidator on condition that the applicant
 will not part with possession of the said premises
 without seeking prior directions from this Court.
 as the order passed by the Appellate Bench would be
 subjudiced in view of the steps being taken by the
 Official Liquidator to challenge the same. In other
 words, possession of the aforesaid premises can be
 handed over to the applicant subject to the outcome
 of the said proceedings.

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 3. The applicant is willing to file affidavit of
 undertaking that possession will be restored with
 the Official Liquidator forthwith if such a

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 direction is passed by the High Court in the
 Proposed Writ Petition to be filed by the Official
 Liquidator against the decision of the Appellate
 Bench of the Small Causes Court dated 17.4.2003 in
 Appeal No.523 of 2001 and that the applicant shall
 not create third party right, title or interest in
 the said premises without seeking prior permission
 of this Court.

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 4. In so far as the payment is concerned, during
 the course of arguments, the learned counsel for the
 Applicant, on instructions of the applicant, who is
 present in Court shows willingness to deposit the
 entire amount of Rs.7,50,000/- in this Court which
 can be handed over to the Official Liquidator.

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 5. In so far as the claim of compensation at the
 rate of Rs.1000/- per month from 1.6.1999 to
 1.2.2004 is concerned, that will be subject to the
 outcome of the proceedings to be taken out by the
 Official Liquidator to challenge the order passed by
 the Appellate Bench dated 17.4.2003 in Appeal No.523
 of 2001. This assurance is accepted.

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 6. Accordingly, this application succeeds on the
 following terms :

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 i) The possession of the premises situated at
 108, Owners Industrial Estate, Gabrial Road,
 Mahim (W), Mumbai-16 be handed over by the
 Respondents to the applicant only after
 undertaking is filed by the applicant in
 this Court that the possession is being
 accepted subject to the outcome of the
 proceedings pending in this Court being Suit
 No.4043 of 1996 as well as the proposed Writ
 Petition to be filed against the decision of
 the Appellate Bench of the Small Causes
 Court dated 17.4.2003 in Appeal No.523 of
 2001.

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 ii) The applicant shall also file an undertaking
 that the applicant will not create any third
 party right, title or interest in the said
 premises without seeking prior permission of
 this Court and further that possession will
 be restored back to the Official Liquidator
 as and when such direction is passed by this
 Court.

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 iii) The applicant shall deposit Rs.7,50,000/- in
 this Court within a period of 4 weeks from

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 today as assumed, which will be handed over

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 to the Respondent Official Liquidator.

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 iv) In so far as the claim of the applicant
 towards the compensation payable from
 1.6.1999 to 1.2.1002 in terms of the
 direction issued by the Appellate Bench of
 the Small Causes Court vide order dated
 17.4.2003 in Appeal No.523 of 2001, the same
 shall be subject to the outcome of the
 proposed Writ Petition to be filed by the
 Respondent in this Court challenging the
 decision of the Appellate Bench of the Small
 Causes Court. In other words, if the
 proposed Writ Petition filed by the

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 Respondent Official Liquidator is dismissed,
 and the direction of the Appellate Bench of
 the Small Causes Court to pay compensation
 is affirmed, the Official Liquidator will
 make arrangement to pay such amount to the
 applicant by seeking orders on the report to
 be filed within 4 weeks from the decision of
 this Court in the proposed Writ Petition.

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 7. On the applicant filing undertaking in the above
 terms and depositing the amount as aforesaid,

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 possession of the aforesaid premises be handed over

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 to the applicant.

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 8. Company Application is accordingly disposed of
 on the above terms.

S.S.Wagle v. O.L.of M/S.Consolidated Foundation (I)Ltd. (in Liqn)

Case brief

What is this about?

What did the court decide?

S.S.Wagle v. O.L.of M/S.Consolidated Foundation (I)Ltd. (in Liqn)

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

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