Dismissed

M/s.Shanthi Builders, v. The Assistant Commissioner of

Madras HC17 Jan 2018WP/2/2018

Case brief

AI extract

What is this about?

The Madras High Court dismissed a review application seeking review of an order exempting schedule property from insolvency administration. The Court held that alleged inconsistencies in the earlier order were unwarranted and the applicant's rights as a mortgagee were protected despite the insolvent company's shell status.

What did the court decide?

No relief granted. The Review Application No.2 of 2018 was dismissed with no order as to costs.

M/s.Shanthi Builders, Vs The Assistant Commissioner… — Insolvency and Bankruptcy | Madras HC (2018)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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(IN INSOLVENCY)

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FRIDAY, THE 14TH DAY OF DECEMBER 2018 THE HON'BLE DR.JUSTICE G.JAYACHANDRAN AND THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN

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REVIEW APPLICATION NO.2 OF 2018 IN APPLN. No.156 of 2017 & APPLN.NOS.62,63, 64 AND 65 OF 2018 in I.P. No.25 of 2014

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In the matter of the Presidency Towns Insolvency Act, III of 1909 and In the matter of Arjunlal Sunderdas ...Debtor I.P.NO.25 OF 2014 Smt.Chitra Desai residing at 3A-302, Oakland Park, Yamuna Nagar, Lokhandwala Complex, Andheri (West), Mumbai. ... Petitioning Creditor -VersusMr.S.Arjunlal Sunderdas 23, Anderson Road, Nungambakkam, Chennai-600 006. ... Respondent / Debtor

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REVIEW APPLN.NO.2 OF 2018

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APPLN. No.156 of 2017

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Dr.M.Arumugam, S/o.A.Murukiah Pillai, No.7, Khader Nawaz Khan Road, Nungambakkam, Chennai 600 006. ...Review Applicant/Applicant -Versus-

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1.The Official Assignee, High Court, Chennai – 104.

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... 1^st Respondent/1^st Respondent

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2.Smt.Chitra Desai residing at 3A-302, Oakland Park, Yamuna Nagar, Lokhandwala Complex, Andheri (West), Mumbai. ... 2^nd Respondent/2^nd Respondent/ Petitioning Creditor

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Review Application No.2 of 2018 praying that this Hon'ble Court be pleased to review the common order dated 27.07.2018 in Appln.No.156 of 2017 & Appln.Nos.62, 63, 64 & 65 of 2018, Appln.Nos.33,34, 25 of 2018 in IP.No.25 of 2014 and thereby exempt the schedule property from the administration of the 1^st respondent.

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APPLN. Nos.62 TO 65 of 2018

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The Official Assignee, High Court, Madras. ... Applicant -Versus-

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1.International Sea Foods Private Ltd., Pantheon Apartments, No.17, Pantheon Road, 1^st Lane, Chennai 600 008.

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2.Arjunlal Sunderdas, C/o.Dinesh D.Bajaj, Flat No.8181, TVH Lumbini Square, 127A, Brick Klin Road, Purasawakkam, Chennai 7. ... 2^nd Respondent/Debtor 3.S.Manohar Lal @ S.M.Lal, Flat No.D, Third Floor, Advika Apartments, Door No.11, and Old No.6, 6B and 7, First Street, Subbarao Avenue, Chennai 600 006. ... 3^rd Respondent 4.Dr.M.Arumugam, S/o.Murukiah Pillai, 7, Khadar Nawaz Khan Road, Nungambakkam, Chennai 600 006. ... 4^th Respondent

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The above Review Application coming on this day before this Court for hearing in the presence of Mr.S.R.Raghunathan, advocate for the Applicant herein and Mr.K.V.Ananthakrushnan, advocate for the Official Assignee,

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the 1^st Respondent herein and upon reading the Review Application filed herein and

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The Court made the following order:-

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This application has been filed by the Review Applicant to review the common order dated 27.07.2018 in Applications in A.No.156 of 2017 and A.Nos.62 to 65 of 2018 in I.P.No.25 of 2014 filed to exempt the schedule property from the administration of the first respondent.

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2.Heard Mr.S.R.Raghunathan, learned counsel for the review applicant.

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3.The learned counsel for the review applicant sought to impress upon this Court that paragraph Nos.149 (i) and 149 (ii) of the order passed by this Court in Applications in A.No.156 of 2017 and A.Nos.62 to 65 of 2018 in I.P.No.25 of 2014 dated 27.07.2018, are contra to each other. It was urged that if International Sea Foods Private Ltd., is declared as a shell company then, the right of the review applicant as a mortgagee with International Sea Foods Private Ltd., may be affected. This Court finds that such an apprehension is unwarranted. The observation of this Court in paragraph Nos.149 (i) and 149 (ii) of the order dated 27.07.2018 are independent of each other and they are not mutually destructive.

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4.As far as Dr.M.Arumugam, the applicant in A.No.156 of 2017 is concerned, his right as a mortgagee, in respect of the property bearing No.23, Anderson Road, Nungambakkam, Chennai 600 006, is well protected under the order passed by this Court dated 27.07.2018. We have held that International Sea Foods Private Ltd., is a shell

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company of the Insolvent and his brother, only vis-a-vis the Insolvent, who, on behalf of International Sea Foods Private Ltd., created the mortgage in favour of Dr.M.Arumugam.

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5.In view of the above observation, this Court finds there is no necessity to review the earlier order passed by this Court in A.No.156 of 2017 and A.Nos.62 to 65 of 2018 in I.P.No.25 of 2014 dated 27.07.2018.

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6.Review Applciation is dismissed. No costs.

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WITNESS, THE HON'BLE SHRIMATI, VIJAYA KAMLESH

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TAHILRAMANI, CHIEF JUSTICE, HIGH COURT AT MADRAS, AFORESAID THIS THE 14TH DAY OF DECEMBER 2018.

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sd/-

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ASSISTANT REGISTRAR

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//CERTIFIED TO BE TRUE COPY// DATED THIS THE DAY OF 2018

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MANAGER

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From 25^th Day of September 2008 the Registry is issuing certified copies of the Orders/Judgments/Decrees in this format.

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/ 5 / cns.21/12/2018 HIGH COURT, MADRAS REVIEW APPLN.NO.2 OF 2018 IN APPLN. No.156 of 2017 and APPLN.NOS.62, 63,64,65/2018 IN I.P.NO.25 of 2014 THE HON'BLE DR.JUSTICE G.JAYACHANDRAN AND THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN ORDER DATED: 14.12.2018 FOR APPROVAL: 24.12.2018 APPROVED ON : 26.12.2018 COPY TO:THE OFFICIAL ASSIGNEE HIGH COURT, MADRAS.

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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(IN INSOLVENCY)

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FRIDAY, THE 14TH DAY OF DECEMBER 2018 THE HON'BLE DR.JUSTICE G.JAYACHANDRAN AND THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN

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REVIEW APPLICATION NO.2 OF 2018 IN APPLN. No.156 of 2017 & APPLN.NOS.62,63, 64 AND 65 OF 2018 in I.P. No.25 of 2014

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REVIEW APPLN.NO.2 OF 2018

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APPLN. No.156 of 2017

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Dr.M.Arumugam, S/o.A.Murukiah Pillai, No.7, Khader Nawaz Khan Road, Nungambakkam, Chennai 600 006. ...Review Applicant/Applicant -Versus-

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1.The Official Assignee, High Court, Chennai – 104.

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... 1^st Respondent/1^st Respondent

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2.Smt.Chitra Desai residing at 3A-302, Oakland Park, Yamuna Nagar, Lokhandwala Complex, Andheri (West), Mumbai. ... 2^nd Respondent/2^nd Respondent/ Petitioning Creditor

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APPLN. Nos.62 TO 65 of 2018

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The Official Assignee, High Court, Madras. ... Applicant

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-Versus-

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1.International Sea Foods Private Ltd., Pantheon Apartments, No.17, Pantheon Road, 1^st Lane, Chennai 600 008. 2.Arjunlal Sunderdas, C/o.Dinesh D.Bajaj, Flat No.8181, TVH Lumbini Square, 127A, Brick Klin Road, Purasawakkam, Chennai 7. ... 2^nd Respondent/Debtor 3.S.Manohar Lal @ S.M.Lal, Flat No.D, Third Floor, Advika Apartments, Door No.11, and Old No.6, 6B and 7, First Street, Subbarao Avenue, Chennai 600 006. ... 3^rd Respondent 4.Dr.M.Arumugam, S/o.Murukiah Pillai, 7, Khadar Nawaz Khan Road, Nungambakkam, Chennai 600 006. ... 4^th Respondent The above Review Application coming on this day

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before this Court for hearing in the presence of Mr.S.R.Raghunathan, advocate for the Applicant herein and Mr.K.V.Ananthakrushnan, advocate for the Official Assignee,

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the 1^st Respondent herein and upon reading the Review

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Application filed herein and and this Court having

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observed that the International Sea Foods Privae Ltd.,is a shell company of the insolvent and his brother, only vis-avis the insolvent, who, on behalf of Inernational Sea Foods Private Ltd.,created the mortgage in favour of Dr.M.Arumugam and this Court finds there is no necessity to review the earlier order passed by this Court in A.No.156 of 2017 and A.Nos.62 to 65 of 2018 in IP.No.25 of 2014 dated 27.07.2018 and

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IT IS ORDERED :-

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1.That the Review Application No.2 of 2018 in Appln.No.156 of 2017 in IP.No.25 of 2014 be and is hereby dismissed.

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2.That there shall be no costs.

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WITNESS, THE HON'BLE SHRIMATI, VIJAYA KAMLESH

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TAHILRAMANI, CHIEF JUSTICE, HIGH COURT AT MADRAS, AFORESAID THIS THE 14TH DAY OF DECEMBER 2018.

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sd/-

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ASSISTANT REGISTRAR Original Side – I

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//CERTIFIED TO BE TRUE COPY//

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DATED THIS THE DAY OF 2018

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MANAGER

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INSOLVENCY OFFICE

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From 25^th Day of September 2008 the Registry is issuing certified copies of the Orders/Judgments/Decrees in this format.

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cns.21/12/2018

HIGH COURT, MADRAS

REVIEW APPLN.NO.2 OF 2018 IN APPLN. No.156 of 2017 and APPLN.NOS.62, 63,64,65/2018 IN I.P.NO.25 of 2014 THE HON'BLE DR.JUSTICE G.JAYACHANDRAN AND THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN ORDER DATED: 14.12.2018

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FOR APPROVAL: 24.12.2018 APPROVED ON : 26.12.2018 COPY TO:THE OFFICIAL ASSIGNEE HIGH COURT, MADRAS.

M/s.Shanthi Builders, v. The Assistant Commissioner of

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M/s.Shanthi Builders, v. The Assistant Commissioner of

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