Allowed

Faizal Edavalath Kottikollon v. the Official Liquidator

Karnataka HC25 Mar 2021CA/43/2021

Case brief

AI extract

What is this about?

Company application filed under Companies Act, 1956 for directing the official liquidator to execute and register a sale deed for an apartment. Court allowed the application, directing the liquidator to execute the deed with the developer present, subject to conditions including indemnity and NOC from the bank.

What did the court decide?

Order allowed directing the official liquidator to execute and register the sale deed for the subject apartment in favour of the applicants within one month.

Faizal Edavalath Kottikollon Vs the Official Liquidator — Specific Performance | Karnataka HC (2021)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 25^TH DAY OF MARCH, 2021

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BEFORE

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THE HON’BLE MR. JUSTICE S. SUNIL DUTT YADAV

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COMPANY APPLICATION NO.43/2021 IN COMPANY PETITION NO.162/2013

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BETWEEN:

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FAIZAL EDAVALATH KOTTIKOLLON,

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AGED ABOUT 57 YEARS, SON OF MR. P. AHAMMED RESIDING AT VILLA NO.36 AL SHARQAN, UAE - 60865 REPRESENTED BY POWER OF ATTORNEY HOLDER MR. SOVIK PAUL MAZUMDAR.

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MARIAM SHABANA FAIZAL

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AGED ABOUT 49 YEARS, WIFE OF MR. FAIZAL

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EDAVALATH KOTTIKOLLON RESIDING AT VILLA NO.36 AL SHARQAN, UAE - 60865 . … APPLICANTS

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(BY SRI ARVIND KAMAT, SENIOR COUNSEL A/W SRI BOLA NIKIT, ADVOCATE)

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AND:

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THE OFFICIAL LIQUIDATOR UNITED BREWERIES HOLDINGS LIMITED (IN LIQUIDATION) UB CITY, LEVEL 12 UB TOWER, 24 VITTAL MALLYA ROAD BENGALURU - 560 001

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... RESPONDENT

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2 -

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REPRESENTED BY THE OFFICIAL LIQUIDATOR

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(BY SMT. KRUTIKA RAGHAVAN, ADVOCATE)

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THIS COMPANY APPLICATION IS FILED UNDER SECTIONS 446(1) & (2) AND 537 OF COMPANIES ACT, 1956 READ WITH RULES 6 & 9 OF COMPANIES (COURT) RULES, 1959, PRAYING TO EXECUTE A SALE DEED IN RESPECT OF THE SCHEDULE B & C PROPERTIES AND ETC.

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THIS COMPANY APPLICATION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The applicants have sought for a direction to the respondent to execute a sale deed with respect to Schedule B and C Properties and for a further direction to present the sale deed for registration before the jurisdictional SubRegistrar, Bangalore.

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It is submitted that the execution of sale deed is sought as regards apartment bearing No.9A in the 9th Floor of Kingfisher Towers, which is a portion of Schedule A Property.

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The applicants submit that they had entered into an Agreement to Sell on 17.12.2012 with the Company in

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liquidation and Prestige Estate Projects Limited to purchase the Apartment No.9A morefully described in the schedule to the application. It is further submitted that the consideration of Rs.22,46,67,000/-, which also represents the market value of the apartment has been paid to the designated account of HDFC Limited. Statement of account has been furnished indicating payments to the designated account by the applicants. It is further submitted that insofar as the obligations of the applicants under the Agreement to Sell, the applicants have discharged all the obligations and hence, request for a direction to the Official Liquidator to execute the sale deed.

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Attention is drawn to the order passed in C.A.No.165/2020 while submitting that the legal

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contentions regarding the merits of the similar application filed by the purchaser who is similarly situated as that of the present applicants, has been considered in detail. Accordingly, it is submitted that the present application be

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allowed as sought for, in terms of the order dated 18.02.2021.

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Learned counsel for the Official Liquidator submits that the legal contentions as made out in the present case has been considered in detail in the order of this Court while disposing off C.A.165/2020 and hence, the present application may be disposed off in terms of the order passed in C.A.165/2020.

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Noticing the order passed in C.A.165/2020, taking note of the assertions of the applicants that the entire amount of sale consideration has been paid to the designated account, details of which have been mentioned in para 9 of the application, taking note of the submission that the entire payment was made through bank transfer and also noticing the order passed in C.A.165/2020 on 18.02.2021, present application deserves to be allowed in terms of the order passed in C.A.165/2020.

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As per the memo dated 18.03.2021, applicants submit that their claim as made out in the legal notice dated 06.05.2016 against the company in liquidation is withdrawn. Said submission is taken note of.

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8. Accordingly, I pass the following:

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ORDER

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(i) C.A. No. 43/2021 is allowed.

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(ii) The official liquidator is directed to execute and register the sale deed in respect of the subject Apartment bearing No.9A in the 9th Floor in Kingfisher Towers, developed on Schedule-A Property, measuring 8321 Sq. Ft. super built up area inclusive of proportionate share in all the common areas and with Five Car Parking spaces in the building, in favour of the applicants within a period of one month from the date of receipt of a copy of this order subject to the applicants complying with the following conditions:-

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(a) The applicants shall ensure the presence of Developer M/s. Prestige Estates Projects Ltd., at the time of execution and registration of the sale deed in respect of the subject Apartment in favour of the applicants.

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(b) The applicants shall execute Indemnity Bond in favour of the Official Liquidator indemnifying the Official Liquidator against any loss that may be caused to the Official Liquidator as regards third party claims prior to registration of the sale deed.

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(c) It is made clear that all remedies available in law to the official liquidator are kept open, in the event the transaction is vitiated by fraud as indicated in the indemnity bond stated supra.

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(d) The official liquidator shall take necessary steps to hand over possession of the subject Apartment in favour of the applicants.

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(e) It is made clear that the applicants are required to obtain 'No Objection Certificate' from HDFC Limited in light of they having paid the entire amount in discharge of their obligations under the Agreement to Sell and Construction Agreement.

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Sd/-

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JUDGE

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Faizal Edavalath Kottikollon v. the Official Liquidator

Case brief

What is this about?

What did the court decide?

Faizal Edavalath Kottikollon v. the Official Liquidator

Case brief

What is this about?

What did the court decide?

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