Dismissed

M/s. Lakhotia Udyog v. Rajesh Manmohandas Sheth and Ors.

Bombay HC16 Dec 2014NMIS/53/2014

Case brief

AI extract

What is this about?

The court dismissed the applicants notice of motion seeking annulment of an adjudication order as withdrawn. The court granted liberty to file a fresh motion after the Supreme Courts referenced larger bench decision on arbitration awards under the Presidency Towns Insolvency Act is decided. An interim undertaking regarding property disposition was accepted.

What did the court decide?

Notice of Motion dismissed as withdrawn with liberty to file fresh motion after Supreme Court decision. Interim undertaking accepted.

M/s. Lakhotia Udyog Vs Rajesh Manmohandas Sheth and… — Insolvency and Bankruptcy | Bombay HC (2014)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN INSOLVENCY

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NOTICE OF MOTION NO.53 OF 2014 IN INSOLVENCY PETITION NO.95 OF 2001

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Bharti Sheth & Ors. Versus Lakhotia Udyog

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.....Applicants/Insolvents ......Respondents

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Mr. K.J.Somane, for Insolvent.

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Mr. M.D.Narvekar, Official Assignee, present.

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CORAM: S.J.KATHAWALLA, J. DATE: 16TH DECEMBER 2014

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P.C. :

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By the above Notice of Motion, the Insolvents have interalia prayed that the order of adjudication dated 17/06/2003 passed in Insolvency Petition No.95 of 2001 may be annulled under Section 21(2) of the Presidency Towns Insolvency Act, 1909, and all the acts, actions things done in pursuance thereto be cancelled and set aside and declared null and void. In support of this prayer, the Insolvents have relied on the decision of the Hon'ble Supreme Court of India in the case of Paramjeet Singh Patheja V/s. I.C.D.S. AIR 2007 SC 168, wherein it was held that the Insolvency Notice cannot be issued under Section 9(2) of the said Act on the basis of an arbitration award.

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The Official Assignee has drawn my attention to the orders passed by the Hon'ble Division Bench of this Court dated 06/01/2010 in Appeal No.232 of 2009 in Notice of Motion No.46 of 2008 in Insolvency Petition No.6 of 2001, interalia recording that by an order passed by the

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Hon'ble Supreme Court on 10/01/2008, the view taken in Paramjeet Singh Patheja (Supra) has been referred to a larger Bench. The Hon'ble Division Bench has further held in paragraph No.5 of the said order, as follows :

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“In our considered opinion, it would be appropriate to wait for the decision of the larger Bench arising from S.L.P (Civil) No.23495 of 2007 and hence we adjourn this Appeal for two months. Stand over to 5th March, 2010”.

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Thereafter, the same matter appeared before another Division Bench of this Court, when by an order dated 07/06/2010 liberty was granted to the parties to move the Court after the said reference made to the larger Bench was decided by the Hon'ble Supreme Court.

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In view of the above facts, no orders are passed on the above Notice of Motion. The same is dismissed as withdrawn with liberty to the Applicants/Insolvents to file a fresh Notice of Motion if so advised after the issue raised in the said Reference is answered by the Hon'ble Supreme Court.

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5 In the meantime, the Insolvents shall appear before the Official Assignee on 07/01/2015 at 3.00 p.m., for examination. The Official Assignee shall close the examination of the Insolvents on that day. The Insolvents through their Counsel also undertake that until further orders, they shall not dispose of, alienate, encumber, part with possession and/or create any third party rights in respect of any of their properties. The undertaking is accepted.

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( S.J.KATHAWALLA, J. )

M/s. Lakhotia Udyog v. Rajesh Manmohandas Sheth and Ors.

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M/s. Lakhotia Udyog v. Rajesh Manmohandas Sheth and Ors.

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