Bahubali Estates Private Limited and 4 Ors. vs Rajeev Tulsiyan and 14 Ors. — Bombay HC (2025) — LawSathi Research

Bahubali Estates Private Limited and 4 Ors. vs Rajeev Tulsiyan and 14 Ors. — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Interim Application No. 3617 of 2024 allowed and disposed: Court Receiver to remit directly to MCGM the amount of MCGM's challan (quantum not stated in the order) and to transfer Rs.20 lakhs to the account of Shrenik Jayantilal Jain, Director of Defendant No.1, for personal expenses after due verification. Interim Application (L) No. 7151 of 2024 kept pending until issuance of the commencement certificate by MCGM; matter listed on 20th February 2025 with directions to MCGM's counsel to take instructions.

Issue for consideration

Whether the Court Receiver should be directed to pay, out of funds in its hands, the amount of MCGM's challan directly to MCGM and Rs.20 lakhs into the account of Shrenik Jayantilal Jain, Director of Defendant No.1, for personal expenses. +1 more

Court's answer

The Court directed that the Court Receiver pay directly to the MCGM the amount mentioned in the challan raised by the MCGM.

Ratio / Principle

Rs.20 lakhs is to be transferred to the account of Shrenik Jayantilal Jain, Director of Defendant No.1, for personal expenses, after due verification.

Key takeaways

Until the commencement certificate is issued by MCGM, Interim Application (L) No. 7151 of 2024 stands kept pending; the Court listed the matter for 20th February 2025, acceding to counsel's submission recorded in paragraphs 6-7.ratio¶38
Ms. Yadav, learned Counsel for the MCGM, was directed to take appropriate instructions with respect to the obtention of the commencement certificate by the next date.ratio¶40

Detailed headnote1 paragraphs

Bombay High Court (Commercial Division, Ordinary Original Civil Jurisdiction), Abhay Ahuja, J. — Interim Application No. 3617 of 2024 in Notice of Motion No. 1816 of 2018 (with Interim Application (L) No. 7151 of 2024 in Commercial Suit No. 1111 of 2018), arising between Bahubali Estates Private Limited and others (Applicants) and Rajeev Tulsiyan and others (Respondents). With the concurrence of both sides, the Court allowed and disposed of Defendant No.1's application seeking payment of Rs.30 lakhs by the Court Receiver to the Director of Defendant No.1: the Court Receiver is to pay the Municipal Corporation of Greater Mumbai (MCGM) directly the amount mentioned in MCGM's challan, and to transfer Rs.20 lakhs to the account of Shrenik Jayantilal Jain, Director of Defendant No.1, for personal expenses, after due verification. Plaintiffs' Interim Application (L) No. 7151 of 2024, linked to the commencement certificate from MCGM, is kept pending until the certificate is issued; the matter is listed for 20th February 2025, and MCGM's counsel is directed to take appropriate instructions regarding obtention of the commencement certificate by the next date. No statute or precedent was cited; the order is administrative/procedural in nature.

27-IA-3617-2024.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

Digitally signed by KANCHAN KANCHAN PRASHANT PRASHANT DHURI DHURI Date: 2025.01.10 18:00:06 +0530

ORDINARY ORIGINAL CIVIL JURISDICTION

IN ITS COMMERCIAL DIVISION

INTERIM APPLICATION NO. 3617 OF 2024

IN

NOTICE OF MOTION NO. 1816 OF 2018

Bahubali Estates Private Limited and others … Applicants

Versus

Rajeev Tulsiyan and others … Respondents

WITH

INTERIM APPLICATION (L) NO. 7151 OF 2024

IN

COMMERCIAL SUIT NO. 1111 OF 2018

Mr. Kapil Shah instructed by M.K. Juris Associates, Advocate for the Applicant/Defendant No.1 in IA-3617-2024.

Mr. Sumit Raghani instructed by Argus Partners, Advocate for the Plaintiffs in COMS-1111-2018 and for the Applicants in IAL-7151-2024. Mr. Vijay Jaitkar alongwith Ms. Pooja Yadav and Mr. Sunil Khandagale instructed by Ms. Komal Punjabi, Advocate for the Defendants No.2 to 4 and for the Respondent-MCGM.

Mr. N.C. Pawar, OSD to the Court Receiver with Ms. V.N. Warlekar, S.O., Court Receiver, present.

CORAM : ABHAY AHUJA, J.

P.C. :

Interim Application No. 3617 of 2024 :

This Interim Application has been filed by Defendant No.1

seeking direction to the Court Receiver to pay Rs.30 lakhs to the

Director of Defendant No.1.

Kanchan Dhuri 1/3

27-IA-3617-2024.doc

Mr. Raghani, learned Counsel, appears for the Plaintiffs and submits that he has no objection if the amount mentioned in the challan by the Municipal Corporation of Greater Mumbai (MCGM) is paid to the MCGM directly by the Court Receiver and Rs.20 lakhs is paid for personal expenses of the Director of Defendant No.1.

Mr. Shah, learned Counsel, appearing for the Defendant No.1 has also no objection if the directions as submitted by Mr. Raghani are given.

Having heard the learned Counsel and having considered their submissions, this Court is of the view that the Court Receiver pay directly to the MCGM, the amount mentioned in the challan by the MCGM and Rs.20 lakhs be transferred to the account of the Director of Defendant No.1, viz. Shrenik Jayantilal Jain for personal expenses, after due verification.

The Interim Application accordingly stands allowed and disposed as above.

Interim Application No.7151 of 2024 :

This Interim Application has been filed by the Plaintiffs. Mr. Raghani, learned Counsel, submits that once the commencement

Kanchan Dhuri 2/3

27-IA-3617-2024.doc

certificate is issued by the MCGM, this Interim Application would stand

worked out.

The learned Counsel however submits that until the commencement certificate is issued, this Interim Application be kept pending.

Accordingly, list on 20^th February 2025 .

Ms. Yadav, learned Counsel for the MCGM to take appropriate

instructions with respect to the obtention of the commencement certificate by the next date.

(ABHAY AHUJA, J.)

Kanchan Dhuri 3/3