Disposed

M/S Leo Ispat Limited v. Mr Deepak Raheja & Ors.

Delhi HC15 Jan 2025CONT.CAS(C)/66/2024

Case brief

AI extract

What is this about?

Contempt petitions alleging non-compliance of a settlement order were heard along with quashing petitions of summoning orders and NBWs in Section 138 NI Act complaint cases arising from a Rs.4.28 crore settlement. The court directed payment of Rs.8,40,000 as interest, held nothing further payable, dismissed the contempt petitions and quashed all six complaint cases.

What did the court decide?

Rs.8,40,000 directed to be paid within 60 days as final interest; contempt petitions dismissed; six Section 138 NI Act complaint cases and connected proceedings quashed.

M/S Leo Ispat Limited Vs Mr Deepak Raheja & Ors. — Contempt of Court | Delhi HC (2025)

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$~4 to 12

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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% Date of decision: 15^th January, 2025

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- CONT.CAS(C) 65/2024

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi .....Petitioner Through: Ms. Kshirja Agarwal, Advocate. versus

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1. MR. DEEPAK RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Respondent No.1.

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MRS. CHHAYA RAJEHA , W/o Deepak Raheja R/o C-2 Block, House No. 81, Sushant Lok 1, Gurgaon. ....Respondent No.2.

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3. MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana ....Respondent No.3.

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4. MR. ANUJ RAHEJA Director

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CONT.CAS(C) 65/2024 & connected matters Page 1 of 15

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Signature Not Verified

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana ....Respondent No.4.

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5. M/S ADI AUTOMOTIVES PVT. LTD. Through its Director Mr. Ashish Raheja

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At:-

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C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana ....Respondent No.5. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates.

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CRL.M.C. 5283/2017, CRL.M.A. 20730/2017

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MR. DEEPAK RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.1.

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MRS. CHHAYA RAJEHA, W/o Deepak Raheja R/o C-2 Block, House No. 81, Sushant Lok 1, Gurgaon. .....Petitioner No.2.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.3.

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4. MR. ANUJ RAHEJA

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Signature Not Verified

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Digitally Signed CONT.CAS(C) 65/2024 & connected matters Page 2 of 15 By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.4. 5. M/S ADI AUTOMOTIVES PVT. LTD. Through its Director Mr. Ashish Raheja C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.5. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates. versus

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STATE NCT OF DELHI .....Respondent No.1.

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M/S LEO ISPAT LIMITED

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Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi.....Respondent No.2. Through: Ms. Kshirja Agarwal, Advocate for R2. CRL.M.C. 5294/2017, CRL.M.A. 20768/2017 1. MR. DEEPAK RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.1.

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Signature Not Verified

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Digitally Signed CONT.CAS(C) 65/2024 & connected matters Page 3 of 15 By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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MRS. CHHAYA RAJEHA , W/o Deepak Raheja R/o C-2 Block, House No. 81, Sushant Lok 1, Gurgaon. .....Petitioner No.2.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.3.

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MR. ANUJ RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.4.

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M/S ADI AUTOMOTIVES PVT. LTD. Through its Director Mr. Ashish Raheja C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.5. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates. versus

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STATE NCT OF DELHI .....Respondent No.1.

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at:

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CONT.CAS(C) 65/2024 & connected matters Page 4 of 15

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Signature Not Verified

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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Y-126, Ground Floor Loha Mandi, Naraina, New Delhi.....Respondent No.2 Through: Ms. Kshirja Agarwal, Advocate for R2.

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CRL.M.C. 5295/2017, CRL.M.A. 20770/2017

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MR. DEEPAK RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.1. 2. MRS. CHHAYA RAJEHA, W/o Deepak Raheja R/o C-2 Block, House No. 81, Sushant Lok 1, Gurgaon. .....Petitioner No.2.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.3.

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MR. ANUJ RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.4.

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M/S ADI AUTOMOTIVES PVT. LTD. Through its Director Mr. Ashish Raheja

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Signature Not Verified

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Digitally Signed CONT.CAS(C) 65/2024 & connected matters Page 5 of 15 By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.5. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates.

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versus

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STATE NCT OF DELHI .....Respondent No.1.

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi.....Respondent No.2. Through: Ms. Kshirja Agarwal, Advocate for R2.

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CRL.M.C. 1072/2023, CRL.M.A. 4108/2023

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CHHAYA RAHEJA W/ o Late Deepak Raheja R/o 846, Sector-15, Part-II Gurgaon - 122022 AND ORS .....Petitioner No.1.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.2.

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Mr. Anuj Raheja Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway

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CONT.CAS(C) 65/2024 & connected matters Page 6 of 15

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Signature Not Verified

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.3. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates.

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Versus

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STATE NCT OF DELHI .....Respondent No.1.

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi ....Respondent No.2. Through: Ms. Kshirja Agarwal, Advocate for R2.

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- CRL.M.C. 1073/2023, CRL.M.A. 4111/2023

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CHHAYA RAHEJA W/ o Late Deepak Raheja R/o 846, Sector-15, Part-II Gurgaon - 122022 AND ORS .....Petitioner No.1.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.2.

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MR. ANUJ RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone,

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CONT.CAS(C) 65/2024 & connected matters Page 7 of 15

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Signature Not Verified Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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Gurgaon, Haryana .....Petitioner No.3. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates.

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Versus

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STATE NCT OF DELHI .....Respondent No.1.

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi...Respondent No.2 Through: Ms. Kshirja Agarwal, Advocate for R2.

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CRL.M.C. 1074/2023, CRL.M.A. 4112/2023

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CHHAYA RAHEJA W/ o Late Deepak Raheja R/o 846, Sector-15, Part-II Gurgaon - 122022 AND ORS .....Petitioner No.1.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.2.

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MR. ANUJ RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Petitioner No.3.

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Signature Not Verified

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CONT.CAS(C) 65/2024 & connected matters Page 8 of 15

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates.

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Versus

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STATE NCT OF DELHI .....Respondent No.1.

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi .....Respondent No.2. Through: Ms. Kshirja Agarwal, Advocate for R2. + CONT.CAS(C) 66/2024, CM APPL. 2651/2024

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi .....Petitioner No.1. Through: Ms. Kshirja Agarwal, Advocate. versus 1. MR. DEEPAK RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.1.

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MRS. CHHAYA RAJEHA , W/o Deepak Raheja R/o C-2 Block, House No. 81,

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CONT.CAS(C) 65/2024 & connected matters Page 9 of 15

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Signature Not Verified

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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Sushant Lok 1, Gurgaon. .....Contemnor No.2.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.3.

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MR. ANUJ RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.4.

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M/S ADI AUTOMOTIVES PVT. LTD. Through its Director Mr. Ashish Raheja C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.5. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates. + CONT.CAS(C) 72/2024

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M/S LEO ISPAT LIMITED Through its Director Having its registered and Corporate office at: Y-126, Ground Floor Loha Mandi, Naraina, New Delhi .....Petitioner Through: Ms. Kshirja Agarwal, Advocate. versus

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CONT.CAS(C) 65/2024 & connected matters Page 10 of 15

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Signature Not Verified Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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MR. DEEPAK RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.1.

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MRS. CHHAYA RAJEHA , W/o Deepak Raheja R/o C-2 Block, House No. 81, Sushant Lok 1, Gurgaon. .....Contemnor No.2.

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MR. ASHISH RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.3.

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MR. ANUJ RAHEJA Director M/s ADI Automotives Pvt. Ltd. C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.4.

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M/S ADI AUTOMOTIVES PVT. LTD. Through its Director Mr. Ashish Raheja C/o 58-59 Km Milestone, Delhi Jaipur Highway Binola Industrial Zone, Gurgaon, Haryana .....Contemnor No.5. Through: Mr. Nikhil Kohli and Mr. Rahul Sinha, Advocates.

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CORAM:

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CONT.CAS(C) 65/2024 & connected matters Page 11 of 15

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Signature Not Verified Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA J U D G M E N T (oral)

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The three Contempt Petitions being CONT.CAS(C) 65/2024, 66/2024 and 72/2024 under Section 11 and 12 of the Contempt of Courts Act, 197 1 have been filed on behalf of the Petitioner, M/s. Leo Ispat Limited against the Contemnors for non-compliance of the Order dated 26.07.2023 regarding the settlement inter-se the parties.

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CRL.M.C.5283/2017, 5294/2017, and 5295/2017, have been filed on behalf of the Respondents, Mrs. Chaya Raheja, Mr. Ashish Raheja, Mr. Anuj Raheja and Mr. Deepak Raheja for quashing of the summoning Order dated 02.02.2016 vide which they have been summoned in the Complaint Cases bearing C.C. No. 16776/2016, 16777/2016 and 16778/2016 under Section 138 N.I. Act.

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CRL.M.C. 1072/2023, 1073/2023 & 1074/2023 have been filed on behalf of the Respondents, Mrs. Chaya Raheja, Mr. Ashish Raheja, Mr. Anuj Raheja and Mr. Deepak Raheja for quashing of the impugned Order dated 12.01.2023 vide which NBWs were issued against the Petitioners and also seeks quashing of Complaint Cases bearing C.C. No. 19334/2016, 16733/2016 and 19335/2016 under Section 138 N.I. Act.

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Learned counsel on behalf of the Petitioner submits the parties entered into a compromise in the sum of Rs.4.28 Crores, in terms of the Settlement Deed dated 28.10.2018. he Civil Suit for Recovery was decreed in terms of the Settlement dated 28.10.2018. The Post-dated

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Signature Not Verified

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CONT.CAS(C) 65/2024 & connected matters Page 12 of 15

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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cheques (PDCs) were paid for the settled amount payable till March, 2019. However, while Rs.28,00,000/- have been paid at the time of Settlement, Rs.3.5 Crores were paid on 14.11.2019 i.e. after a delay of six months leaving a balance of Rs.50,00,000/-.

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The Execution proceedings were initiated by the Respondent/Complainant in respect of the balance payment wherein the Petitioner herein undertook to pay Rs.50,00,000/- along with an interest of 15% i.e. Rs. 65,00,000 to be finally settled on 14.11.2019, which has eventually been paid in these proceedings on 06.02.2024.

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The only issue which is now being agitated by the parties, is about the interest on the delayed payment as settled, in the Settlement Agreement dated 28.10.2018, that Rs.50,00,000/- along with the interest of Rs.15,00,000/-, was agreed to be paid in the Execution Proceedings.

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Learned counsel on behalf of the Respondents, submits that she has calculated the interest on the balance Rs.50,00,000/- @9% which comes to Rs.23,40,000/-. Rs.15,00,000/- already stands paid.

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The Petitioner undertakes to pay a sum of Rs.7,00,000/towards the full and final settlement to the Respondent, within 60 days.

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Learned counsel on behalf of the Respondents submits that the Complainant is also entitled to interest for 6 months period on Rs.3.5 Crores, which was paid after the delay of six months.

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Submissions heard.

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Signature Not Verified

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CONT.CAS(C) 65/2024 & connected matters Page 13 of 15

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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As detailed above, the Compromise inter-se the parties was in the sum of Rs.4.28 crores vide Settlement Deed dated 28.10.2018 which was payable through PDCs till March, 2019; Rs.28 lakhs got paid at the time of Settlement; Rs.3.5 crores got paid on 14.11.2019 i.e. after a delay of six months leaving a balance of Rs.50 lakhs.

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A sum of Rs.50 lakhs along with interest of Rs. 15,00,000/also got paid on 06.02.2024. In the Order dated 06.02.2024, this court observed that only the component of interest payable on the delayed payment of Rs. 50 lakhs remains to be considered.

¶128

It is on record that there was a shortfall of Rs.50 lakhs in payment of the agreed amount, which did not get paid in 2019 as was finally settled on 14.11.2019. The Accused persons undertook to pay the amount of Rs.50,00,000/- along with interest of Rs. 15,00,000/- on 26.07.2023 within 4 months.

¶129

Finally, this amount of Rs.65 lakhs was paid on 06.02.2024, after which the only question which remained to be considered was the interest component on Rs.50 lakhs to be paid on account of delayed payment. According to the respondents interest @9% was calculated on Rs.50 Lacs which comes to Rs.23,40,000/- out of which Rs.15,00,000/- already stands paid.

¶130

The Directors/Petitioners of the accused Company have agreed to pay a sum of Rs.7 lakhs towards full and final settlement. However, considering the calculation, the Petitioners are directed to pay Rs. Rs.8,40,000/- aa interest component on delayed payment, within 60

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Signature Not Verified

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CONT.CAS(C) 65/2024 & connected matters Page 14 of 15

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

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days.

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In so far as the interest on Rs.3.5 crores being paid after a delay of six months is concerned, the matter has been amicably settled between the parties and the entire proceedings need to be given a closure.

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No further amount is held to be payable to the Complainant beyond the aforesaid amount which the Petitioners have undertaken to pay.

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Contempt Petitions being CONT.CAS(C) 65/2024, 66/2024 and 72/2024 are hereby, dismissed.

¶138

In view of the Compromise between the parties whereby the cheque amount has got settled, nothing more survives in the Complaint Cases bearing C.C. No. 16776/2016, 16777/2016 16778/2016, C.C. No. 19334/2016, 16733/2016 and 19335/2016 under Section 138 N.I. Act. The Complaint cases under Section 138 N.I. Act and all the proceedings emanating therefrom are hereby, quashed.

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(NEENA BANSAL KRISHNA) JUDGE

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JANUARY 15, 2025/RS

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Signature Not Verified

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CONT.CAS(C) 65/2024 & connected matters Page 15 of 15

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Digitally Signed By:VIKAS ARORA Signing Da te:2 2.02.2025 13:20:20

M/S Leo Ispat Limited v. Mr Deepak Raheja & Ors.

Case brief

What is this about?

What did the court decide?

M/S Leo Ispat Limited v. Mr Deepak Raheja & Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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