Disposed

Reliance Assets Reconstruction Company Ltd. v. the Official Liquidator of Avon Corporation Ltd.

Bombay HC8 Jun 2022IA/177/2020

Case brief

AI extract

What is this about?

Secured creditor sought possession of mortgaged unit from official liquidator. Liberty granted for possession within four weeks subject to movables remaining in situ and four-week notice or court leave for removal.

What did the court decide?

Possession of Unit No.1106 to be handed over within four weeks. Movables to remain in situ; liberty to remove after four-week notice or court leave.

Reliance Assets Reconstruction Company Ltd. Vs the… — Company and Corporate | Bombay HC (2022)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

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ORDINARY ORIGINAL CIVIL JURISDICTION

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INTERIM APPLICATION NO. 177 OF 2020

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COMPANY PETITION NO. 538 OF 2013

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Reliance Assets Reconstruction … Applicant/Secured Creditor Company Ltd. In the matter between Hansa Chandrakant Majithia … Petitioner vs. The Official Liquidator of … Respondent Avon Corporation Ltd. (In Liqn.)

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Mr. Charles D’souza a/w. Mr. Nikhil Rajani i/b. M/s. v. Deshpande & Co. for the Applicant.

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Mr. Aditya Pimple for the Official Liquidator.

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Mr. Mahendhar Aithe, Company Prosecutor.

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CORAM : A. K. MENON, J. DATED : 8th JUNE, 2022

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P.C. :

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By this interim application the applicant seeks directions against the Official Liquidator to hand over physical possession of Unit No.1106, 11 th Floor, DLH Park, S. V. Road, Near MTNL, Goregaon (West), Mumbai-400 067 on the basis that the applicant is a secured creditor having obtained an assignment under an Agreement of Assignment dated 30th December, 2016 as

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41-IA-177-2020-CP-538-2013.odt 1/3 rrpillai

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Digitally signed by RAJESHWARI RAJESHWARI RAMESH RAMESH PILLAI PILLAI Date: 2022.06.09 17:09:37 +0530

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between Reliance Capital Limited and the present applicant. Reliance Capital Limited was the mortgagee in respect of the said unit and that is evident from the additional affidavit filed by the present applicant enclosing a copy of the Memorandum of deposit by way of creation of an equitable mortgage of the property. That clearly evidences the fact that the document of title of the aforesaid Unit no. 1106, 11 th Floor, DLH Park, S. V. Road, Near MTNL, Goregaon (West), Mumbai-400 067 were deposited by Avon Corporation Limited (Company in Liquidation) with Reliance Capital Limited. By virtue of Assignment Agreement at Exhibit B to the application, the present applicants are claiming benefit of that security.

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The Liquidator has consented to the application being allowed in compliance with terms in paragraph 21 and in terms of the SARFAESI Act. Meanwhile it is stated by the Liquidator that there are certain movables which are not hypothecated to the applicant or the applicants assignors and that may be safeguarded in situ.. Mr. D’souza states that the applicant will not have the movables removed without leave of this court or without notice to the official liquidator or after a period of four weeks after such notice.

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Accordingly I am of the view that this application is liable to be allowed and I pass the following order :

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(i) Application is made absolute in terms of prayer clause (a) and (aa). Possession will be handed over within the period of four weeks from today.

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41-IA-177-2020-CP-538-2013.odt 2/3 rrpillai

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Applicant shall retain all movables in situ and shall notify the Official Liquidator as aforesaid.

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(ii) Liberty to the Liquidator to file appropriate report to sell all movables,.

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(iii) Interim application disposed in the above terms.

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(A. K. MENON, J.)

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41-IA-177-2020-CP-538-2013.odt 3/3 rrpillai

Reliance Assets Reconstruction Company Ltd. v. the Official Liquidator of Avon Corporation Ltd.

Case brief

What is this about?

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Reliance Assets Reconstruction Company Ltd. v. the Official Liquidator of Avon Corporation Ltd.

Case brief

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