Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. OF 2021
(Arising from SLP(C) No. 14464/2021)
XLO INDIA LIMITED AND ANOTHER …APPELLANTS
VERSUS
INTERNATIONAL ASSET RECONSTRUCTION
COMPANY PRIVATE LIMITED & OTHERS …RESPONDENTS
O R D E R
M.R. SHAH, J.
1. Leave granted.
2. The present appeal arises out of the impugned judgment and order
dated 06.09.2021 passed by the High Court of Judicature for Rajasthan at
Jaipur in S.B. Civil Writ Petition No.9260/2021 by which the High Court has
dismissed the said writ petition preferred by the appellants herein confirming
the judgment and order passed by the Debts Recovery Appellate Tribunal
(DRAT), Delhi passed in Appeal No.82/2020.
3. By judgment and order dated 9.8.2021, the DRAT, Delhi has disposed of
Signature Not Verified
Digitally signed by R
Natarajan
Date: 2021.10.28
16:48:00 IST
Reason:
the said appeal preferred by the respondents herein maintaining the order of
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attachment of share held by appellant no.1 as XLO India Limited during the
pendency of Appeal No.1/2020. However, the DRAT has also directed and
observed that in the meanwhile recovery proceedings will go on before the
Recovery Officer who will try to recover the decretal amount in accordance
with the provisions of Section 25 of the Recovery of Debts and Bankruptcy
Act, 1993.
4. We have heard Shri Dhruv Mehta, learned senior counsel appearing on
behalf of the appellants and Shri K. V. Viswanathan, learned senior counsel
appearing on behalf of respondent no.1 herein.
5. It is not in dispute that Appeal No.1/2020 is pending consideration by the
Debts Recovery Tribunal (DRT), Jaipur. However, at the same time, according
to respondent no.1 herein approximately a sum of Rs.29 crores is due and
payable by appellant no.1, which is disputed by Shri Dhruv Mehta, learned
senior counsel appearing on behalf of the appellants, more particularly on
behalf of appellant no.1.
6. It appears that the case on behalf of appellant no.1 in Appeal No.1/2020
seems to be that the amount due and payable by appellant no.1 has been
paid and the question is of discharge of debt in the execution proceedings.
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7. The aforesaid is disputed by learned counsel appearing on behalf of
respondent no.1.
8. Having heard learned counsel appearing for the respective parties and
at the suggestion by the Court, there is broad consensus between the learned
counsel for the parties to dispose of the present appeal in the following terms -
i) that appellant no.1 to deposit a further sum of Rs.5 crores with the
Presiding Officer, DRT, Jaipur within a period of four weeks from today, without
prejudice to the rights and contentions of appellant no.1 in the pending Appeal
No.1/2020;
ii) that respondent no.1 may be permitted to withdraw the amount of Rs.5
crores to be deposited by appellant no.1, as observed hereinabove along with
Rs.1.53 crores with interest accrued thereon which has been deposited by
appellant no.1 as a pre-deposit while preferring the Appeal No.1/2020;
iii) that respondent no.1 may also be permitted to withdraw the amount of
Rs.25 lakhs which is lying with the Recovery Officer;
iv) that the withdrawal of the aforesaid amount (Rs.5 crores + Rs.1.53
crores with interest accrued thereon + Rs. 25 lakhs) by respondent no.1 shall
be without prejudice to the rights and contentions of the respective parties in
Appeal No.1/2020 as well as subject to the ultimate outcome of the Appeal
No.1/2020;
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v) the DRT, Jaipur may be directed to finally decide and dispose of Appeal
No.1/2020 at the earliest and preferably within a period of eight weeks from
today.
9. In view of the above broad consensus between the learned counsel for
the respective parties recorded hereinabove, we dispose of the present
appeal as under -
a). That appellant no.1 shall deposit a further sum of Rs.5 crores with the
Presiding Officer, DRT, Jaipur within a period of four weeks from today, which
shall be without prejudice to the rights and contentions of the respective
parties in Appeal No.1/2020 and on such deposit, the respondent no.1 is
permitted to withdraw the said amount;
b) that respondent no.1 is permitted to withdraw a sum of Rs.1.53 crores
with interest accrued thereon which appellant no.1 has deposited as pre-
deposit while preferring the Appeal No.1/2020;
c) that respondent no.1 is also permitted to withdraw the amount of Rs.25
lakhs which is lying with the Recovery Officer;
d) that the aforesaid withdrawal by respondent no.1 shall be without
prejudice to the rights and contentions of the respective parties in Appeal
No.1/2020 and subject to the ultimate outcome of the Appeal No.1/2020 and
that in case appellant no.1 succeeds and the order is passed in appeal
against the respondents, the respondents will pay the amount paid in excess,
if any, within a period of four weeks to appellant no.1;
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e) the DRT, Jaipur is directed to finally decide and dispose of Appeal No.1
in accordance with law and on its own merits within a period of eight weeks
from today;
f) either of the parties to place copy of the present order before the DRT,
Jaipur within a period of one week from today;
g) the questions of law, if any, are kept open which may be considered in
appropriate case;
h) the order of attachment of shares held by appellant no.1, as confirmed
by the DRAT is directed to be continued till the final disposal of Appeal
No.1/2020. Till Appeal No.1/2020 is decided and disposed of within the time
stipulated hereinabove, the further recovery proceedings are directed to be
stayed;
i) It is also reported that the appeal by respondent no.1 against the order
of pre-deposit of Rs.1.53 crores is challenged before the DRAT. In view of the
aforesaid, the said appeal preferred by respondent no.1 before the DRAT
challenging the order of pre-deposit stands disposed of.
Pending application(s) shall stand disposed of.
…………………...…………..J.
[M.R. SHAH]
NEW DELHI; …………………………………J.
OCTOBER 27, 2021. [A.S. BOPANNA]
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ITEM NO.1 (PH) COURT NO.13 SECTION XV
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition for Special Leave to Appeal (C) No. 14464/2021
(Arising out of impugned final judgment and order dated 06-09-2021
in SBCWP No. 9260/2021 passed by the High Court of Judicature for
Rajasthan at Jaipur)
XLO INDIA LIMITED & ANR. Petitioner(s)
VERSUS
INTERNATIONAL ASSET RECONSTRUCTION COMPANY
PVT. LTD. & ORS. Respondent(s)
(FOR ADMISSION and IA No.116845/2021-EXEMPTION FROM FILING O.T. )
Date : 27-10-2021 This petition was called on for hearing today.
CORAM :
HON'BLE MR. JUSTICE M.R. SHAH
HON'BLE MR. JUSTICE A.S. BOPANNA
For Petitioner(s) Mr. Dhruv Mehta, Sr. Adv.
Mrs. Suruchi Kasliwal, Adv.
Mr. Shyam Aggarwal, Adv.
Mr. Amit Pawan, AOR
Mr. Hassan Zubair Waris, Adv.
Ms. Shivangi, Adv.
For Respondent(s) Mr. K.V. Viswanathan, Sr. Adv.
Mr. Amarjit Singh Bedi, AOR
Mr. R.P. Agrawal, Adv.
Ms. Manisha Agrawal, Adv.
Ms. Pragati Agrawal, Adv.
Ms. Priyal Modi, Adv.
Mr. Varun Chandiok, Adv.
Ms. Riya Seth, Adv.
UPON hearing the counsel the Court made the following
O R D E R
Leave granted.
The appeal is disposed of in terms of the signed
reportable order.
Pending application(s) shall stand disposed of.
(NEETU SACHDEVA) (NISHA TRIPATHI)
COURT MASTER (SH) BRANCH OFFICER
(signed reportable order is placed on the file)
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