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M/s. Mohali Automobiles Private Limited v/s Union Bank of India & Others

    CWP No. 2959 of 2019

    Decided On, 28 August 2019

    At, High Court of Punjab and Haryana

    By, THE HONOURABLE MR. JUSTICE JASWANT SINGH & THE HONOURABLE MR. JUSTICE LALIT BATRA

    For the Appellant: Aalok Jagga, Advocate. For the Respondents: R1, Shailender Kashyap, Advocate, R2, Kamal Satija, Advocate alongwith Liquidator.



Judgment Text

Oral

1. Petitioner, a Private Limited Company, engaged in sale of cars, manufactured by TATA Motors, took on lease a portion of Plot No. B-16, Industrial Area, Phase-2, Mohali, owned by M/s Hind Motors India Limited (Respondent No. 2), vide Lease Deed dated 17.9.2016 (Annexure-P-6). The lease period specified was for a period of nine years with effect from 1.10.2016 to 30.9.2025 subject to payment of stipulated lease amount per month. The petitioner-Company had tendered a sum of Rs. 10.50 lacs as refundable security.

It transpires that property in question was mortgaged to respondent No. 1-Union Bank of India by respondent No.2-Landlord/owner as collateral security towards a loan of about Rs. 15 crores. The Landlord-respondent No. 2 having defaulted in repayment of due installments and become bankrupt, thus filed a petition under Section 10 of Insolvency and Bankruptcy Code, 2016 (for short 'Code') in January, 2017 for voluntary winding up before the NCLT, Chandigarh Bench, Chandigarh, ultimately resulting in appointment of a Liquidator on 12.9.2017 after following the procedure provided under the Code. The Liquidator thereafter proceeded to take physical possession of rented/demised portion of abovesaid plot in possession of petitioner Company. The petitioner then approached NCLT, Chandigarh Bench, Chandigarh for grant of some time to vacate the premises as its own showroom was under construction at Mohali. After one extension, second extension was declined by NCLT, Chandigarh Bench, Chandigarh. Hence, present writ petition was filed, primarily seeking grant of time to vacate rented portion of said plot and hand over physical possession to Liquidator.

2. This Court on 4.2.2019 passed the following order :-

"Learned counsel for the petitioner inter-alia submits that the petitioner is in physical possession of the property rented out by M/s Hind Motors India Limited before its liquidation. Learned counsel has referred to Annexure P 5, to show that the construction of its own showroom is in progress which is likely to be completed by 6.4.2019. It is stated that the Tribunal has granted time to vacate the premises upto 6.2.2019. Reference was made to Annexure P.8, to show that the entire business of the petitioner would come to a halt in case the premises is vacated by 6.2.2019. It was contended that it was not possible to store the vehicles unless adequate space is available with the petitioner.

Notice of motion to respondent Nos. 1 and 2 only for 8.3.2019.

Notice re: stay.

Process dasti only.

Status quo shall be maintained till the next date of hearing.

At this stage, Mr. Shailender Kashyap, Advocate and Mr. Kamal Satija, Advocate, who is present in Court, accept notice on behalf of respondent Nos. 1 and 2, respectively, who seek time to file reply.

Let the requisite copies of the writ petition be supplied to the learned counsel for respondent Nos. 1 and 2, during the course of day.

Reply, if any, be filed before the adjourned date with an advance copy to the counsel for the petitioner."

3. Thereafter, on 22.5.2019, following order was passed :-

"Learned counsel for the petitioner has filed an additional affidavit dated 22.5.2019 of Sh. Mohit Pratap Singh s/o Sh. Pratap Singh, Director, M/s Mohali Automobiles Pvt. Ltd., wherein the deponent has undertaken to vacate the premises in liquidation by 30.6.2019. The said affidavit is taken on record, subject to all just exceptions. Office to tag the same at appropriate place.

Accordingly, hearing is deferred to 4.7.2019.

In the meantime, the outstanding rent be also cleared before the next date of hearing."

4. Thereafter, the petitioner-Company having vacated the premises and handed over physical possession to Liquidator on 30.6.2019, this Court on 17.7.2019 passed the following order :-

"Petitioner company has concededly vacated the premises and the dispute remains only qua clearance of arrears of some rent for few months. The petitioner company states that they are entitled to adjustment of the refundable security deposited at the time of lease, and that apart he is ready and willing to clear whatever stated arrears.

The calculation of arrears on behalf of respondent No. 3 have been furnished subject to counter adjustment.

Counsel for the petitioner prays for a days accommodation to clear the entire arrears subject to satisfaction of all the parties.

List on 23.7.2019.

To be shown in urgent."

5. At the time of resumed hearing today, the learned counsel for petitioner-Company has tendered a crossed cheque, payable in the name of Liquidator for a sum of Rs. 11,41,223/- to learned counsel for respondent No. 2, which has been accepted towards arrears of rent. It is agreed between the parties that after adjusting the amount of refundable security and amount tendered today in Court, nothing remains outstanding against petitioner-Company towards any claim for the period premises having remained in its occupation, except a sum of Rs. 1,48,525/- towards arrears of Electricity Charges for the period prior to 1.7.2019 as per electricity bill dated 9.8.2019.

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/> The learned counsel for petitioner-Company states that since details of Electricity charges for period till 30.6.2019 have been disclosed now, his client shall tender said amount by way of crossed cheque to the Liquidator within two weeks from today. In view of aforesaid developments, issue, if any, now stands settled between the parties. Disposed of as infructuous. Petitioner-Company shall be bound by its statement towards payment of outstanding electricity charges for the aforesaid period. Applications, if any pending, also stand disposed of.
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