The High Court granted an extension of time for an appellant to deposit the 50% decretal amount and furnish solvent security, imposing conditions for respondent notice and costs.
Time extended by six weeks to deposit arrears; further time granted to furnish solvent security after compliance. Costs of Rs.20,000 awarded.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
211-19-CAF-8=.doc
Uday S. Jagtap
IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION
CIVIL APPLICATION NO. 211 OF 2019 IN
FIRST APPEAL NO. 882 OF 2017
Mahalaxmi Resorts & Ors. .. Applicants In the matter between Mahalaxmi Resorts & Ors. .. Appellants v/s. Dr. Abhay Gangadhar Pagdhare .. Respondent
Mr. R.S. Apte, Senior Counsel a/w Mr. Vinay M. Bhate and Ms. Pinky M. Bhansali for the applicants
Mr. Yogita Deshmukh-Chitnis for the respondent
CORAM : A.S. OKA &
M.S. SANKLECHA, J.J.
DATED : 16th APRIL, 2019
P.C.
and the learned Counsel appearing for the respondent.
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November, 2017. In Civil Application No. 2477 of 2017 filed by the applicants seeking stay of execution of the impugned decree, on 28th November, 2017 following order was passed :-
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January, 2019 for the amount of Rs.3,25,000/- representing 50% of the decretal amount. Perusal of the operative part of the decree shows that the applicants were directed to pay a sum of Rs.6.5 crores along with interest at the rate of 6% p.a. from the date of filing of the suit till the payment. As per the order dated 28th November, 2017, the applicants were required to deposit 50% of the decretal amount within a period of 8 weeks which will include 50% of the interest payable on the amount of Rs.6.5 crores. Thus, the amount of Rs.3.25 lakhs belatedly deposited by the applicants does not represent 50% of the decretal amount. If the applicants want indulgence to be shown by extending the time, the applicants will have to deposit 50% of the decretal amount as payable on 7th January, 2019 when the present application was filed. Only on depositing of the balance amount that the Registrar (Judicial I) can examine whether the security furnished by the applicants is adequate for securing 50% of the balance decretal amount due and payable as on 7th January, 2019.
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Uday S. Jagtap
ORDER
(i) Time granted to the applicants to deposit 50% of the decretal amount as per the order dated 28th November, 2017 is finally extended by a period of six weeks from today, subject to condition of the applicants depositing 50% of the decretal amount (Rs.6.5 crores plus
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interest as directed) as on 7th January, 2019. Thus, the amount payable in addition to Rs.3.25 Crores shall be deposited within six weeks from today;
(ii) On the failure of the applicants to deposit the balance amount as aforesaid within a period of six weeks from today, the impugned decree will immediately become executable;
(iii) Only after deposit of the aforesaid amount, the Registrar (Judicial-I) will examine the documents furnished by the applicants and will ascertain whether the applicants have furnished solvent security for remaining 50% of the decretal amount payable as on 7th January, 2019 to his satisfaction. Before examining the documents, the Registrar (Judicial-I) will satisfy himself that compliance with the aforesaid directions regarding deposit is made by the applicants. If he is satisfied that the compliance is not made, then there will not be any occasion to accept the solvent security as the stay shall stands automatically vacated;
(iv) Before accepting solvent security in terms of the order dated 28th November, 2017 as modified by this order, the Registrar (Judicial-
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I) will give an opportunity of being heard to the respondent. The respondent will be entitled to inspect the documents produced by the applicants; and
(v) The applicants shall furnish solvent surety to the satisfaction of the Registrar (Judicial-I) within a maximum period of 3 months from the date on which the balance amount as aforesaid is deposited by the applicants. If the applicants fail to furnish solvent surety to the satisfaction of the Registrar (Judicial-I) within the stipulated period of 3 months, the stay shall stand vacated without further reference to the Court, notwithstanding the fact that the Applicants deposit the balance amount within the stipulated time;
(vi) The applicants are directed to pay costs quantified at Rs.20,000/to the respondent within a period of four weeks from the date on which this order is uploaded. Payment of costs will be condition precedent.
(M.S. SANKLECHA, J.)
(A. S. OKA, J.)
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2 issues framed by the court
Whether time for depositing decretal amount and furnishing solvent security under the court stay order should be extended despite delay.
Whether the respondent should be given an opportunity of being heard before accepting solvent security.
Mahalaxmi Resorts & Ors.
Dr. Abhay Gangadhar Pagdhare
M.S. Sanklecha
A.S. Oka
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
