Full Judgement
Delhi High Court
Rahul Anil Ahuja vs Gurcharan Dhawan And Ors on 3 January, 2024
Author: Manmeet Pritam Singh Arora
Bench: Manmeet Pritam Singh Arora
$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 42/2024 & CM APPL. Nos. 121/2024 & 122/2024
RAHUL ANIL AHUJA ..... Petitioner
Through: Mr. Vineet Malhotra, Advocate with
Mr. Vishal Gohri, Advocate along
with Petitioner in person
versus
GURCHARAN DHA WAN & ORS. ..... Respondents
Through: Mr. Akshay Ringe and Mr. Anupam
Singh, Advocates for R-3
% Date of Decision: 03.01.2024
CORAM:
HON'BLE THE ACTING CHIEF JUSTICE
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
J U D G M E N T (ORAL)
1. The present petition has been filed under Article 226 of the Constitution of India for quashing of the order dated 03.10.2019 passed by Presiding Officer of Debt Recovery Tribunal ('DRT')-I in O.A. No. 889/2017 and for quashing of Recovery Proceedings pending before the Recovery Officer in RC No. 294/2019.
1.1. Further, the Petitioner seeks direction from this Court prohibiting the Recovery Officer from auctioning the property bearing No.1111, Ground Floor, DLF Phase-4, Gurgaon, Haryana-122002 ('Subject Property'). 1.2. The DRT-I vide order dated 03.10.2019 passed in O.A. No. 889/2017 allowed the application filed by the Respondent No.3 under Section 19 of
Signature Not Verified Digitally Signed W.P.(C) 42/2024 Page 1 of 6 By:Rashmi Dabas Signing Date:05.01.2024 11:28:21 the Recovery of Debts Due to the Banks and Financial Institutions Act, 1993 ('the Act of 1993') for recovery of Rs. 2, 38,24,061/- with pendentelite and future interest at 18.50% from 25.10.2017.
1.3. The DRT-I vide the said order directed the borrowers i.e., the Respondent Nos. 1 and 2 herein to pay to the applicant-bank i.e., the Respondent No.3 within a period of 30 days a sum of Rs. 2,38,24,061/- along with pendentelite and future interest at the rate of 18.50% from 25.10.2017 till its realisation in full failing which the amount was to be recovered from the sale of the subject property as well as the personal movable and immovable assets of the Respondent Nos. 1 and 2 herein.
2. At the outset, the learned counsel for the Petitioner states, on instructions, that the Petitioner is seeking a limited relief in this petition. He states that the Petitioner seeks permission to participate in the auction scheduled for 22.03.2024 and until then he be allowed to continue to occupy the subject property. He states that he is not pressing for any further reliefs.
3. In reply, learned counsel for Respondent No. 3 states that the Petitioner has not complied with the order dated 25.10.2022 passed by DRT- II in SA No. 29/2018 directing the Petitioner to vacate the subject property within one (1) month; failing which the Petitioner has become liable to pay rent of Rs. 2 lakhs per month with effect from 25.10.2022. 3.1 He states that in this manner, the rent has become due and payable with effect from 25.10.2022 and the arrears have mounted since then. He states that rent is due for the period 25.10.2022 till 31.12.2023. He states that the Petitioner cannot be permitted to continue to occupy the property without payment of rent.
3.2 He also relies upon the order dated 16.12.2023 passed by DRT-I, in
Signature Not Verified Digitally Signed W.P.(C) 42/2024 Page 2 of 6 By:Rashmi Dabas Signing Date:05.01.2024 11:28:21 RC 294/2019 (in O.A. 889/2017) wherein the Receiver has been granted liberty to take over the vacant possession of the subject property. He states that since the auction is scheduled for 22.03.2024, the physical inspection of the property has to be offered to the prospective bidders on a daily basis. 3.3 He states that Petitioner has withheld in this petition the judgment dated 18.03.2023 passed by the Court of Civil Judge, Gurugram in CS 1914/2017, dismissing the suit for permanent injunction filed by the Petitioner herein against the Respondent No.1.
3.4 He states that the Petitioner is merely a tenant in the subject property and all his rights and contentions have been adjudicated upon by DRT-II while dismissing his application i.e., SA No. 29/2018 on 25.10.2022. He states that therefore the Petitioner has no right to continue in possession.
4. In view of the aforesaid submissions of the Respondent No. 3, the learned counsel for the Petitioner states on instructions that the Petitioner undertakes to comply with the order dated 25.10.2022 passed by the DRT-II in SA 29/2018. He further states that the Petitioner unconditionally withdraws the challenge to the orders passed by DRT in OA No. 889/2017, RC No. 294/2019, SA No. 29/2018 as well as the Sale Proclamation Notice issued on 27.09.2023 for the subject property, by the DRT-I in R.C. No. 294/2019. He states that the Petitioner is seeking limited relief from the Court for participating in the auction proceedings on 22.03.2024 for the subject property and remain in possession until then.
5. Accordingly, with the consent of the parties, the present petition is disposed of recording the following statements and undertakings on behalf of the Petitioner:
(i) The Petitioner admits his liability to pay rent at Rs. 2 lakhs per month
Signature Not Verified Digitally Signed W.P.(C) 42/2024 Page 3 of 6 By:Rashmi Dabas Signing Date:05.01.2024 11:28:21 in accordance with order dated 25.10.2022 passed by DRT-II in S.A. No. 294/2019. The Petitioner has thus, become liable to pay rent with effect from 25.10.2022.
(ii) The Petitioner undertakes to clear arrears of rent for the period of 25.10.2022 until 31.12.2023 in two (2) instalments. The first (1st) instalment of Rs. 10 lakhs will be paid on or before 10.01.2024 and the second (2nd) instalment for the balance amount will be paid on or before 20.03.2024.
(iii) In addition, the Petitioner undertakes to pay the rent of Rs. 2 lakhs for the month of January, 2024 on or before 07.01.2024 and similarly for the month of February, 2024 and so on until the date of handing over of the physical and vacant possession of the subject property.
(iv) The Petitioner withdraws his challenge to the Sale Proclamation Notice. The Petitioner acknowledges that he shall participate in the auction proceedings and submit his bid for the subject property on 'as is where is basis'.
(v) The Petitioner will make available the subject property for inspection to the prospective bidders with effect from 04.01.2024 between 10:00 AM to 05:00 PM every day until 22.03.2024.
(vi) The Petitioner undertakes to this Court that he will vacate the subject property within 48 hours after 22.03.2024 and handover the physical and vacant possession to Respondent No. 3. The Petitioner will remain liable to pay a rent until he hands over the physical and vacant possession.
(vii) The Petitioner will be entitled to continue to occupy the subject property beyond 22.03.2024 only if he is declared as the successful bidder in the auction proceedings. In this scenario, the Petitioner will continue to remain liable to pay rent to Respondent No. 3 until he deposits the entire bid
Signature Not Verified Digitally Signed W.P.(C) 42/2024 Page 4 of 6 By:Rashmi Dabas Signing Date:05.01.2024 11:28:21 amount.
(viii) The Petitioner withdraws his challenge to the orders passed by DRT in OA No. 889/2017, RC No. 294/2019, SA No. 29/2018 and accordingly, The Petitioner undertakes to withdraw all pending cases initiated against Respondent No.3.
(ix) The Petitioner undertakes that the payments towards rent will not be adjusted towards the bid amount and Respondent No.3 is entitled to adjust the rental amount separately towards the recovery of the outstanding amount.
(x) The Petitioner is present in person and has affixed his signatures on this order in acknowledgement of his undertaking to abide by the aforesaid statements made before this Court. The Petitioner states that he understands that he would become liable for consequences arising for the breach of the undertaking given to this Court. The said undertaking is accepted by this Court and the Petitioner is bound down to the same.
6. In view of the above, the Petitioner is permitted to continue to occupy the subject property on the aforesaid terms and conditions until 22.03.2024. In case the Petitioner commits default of any terms of the undertaking recorded at paragraph 5, the Receiver will be at liberty to forthwith take over possession of the subject property in accordance with the DRT's order dated 16.12.2023. In such an event, the Respondent No. 3 will be entitled to recover the rent from Petitioner in the recovery proceedings in accordance with law.
7. It is further directed that subject to the Petitioner depositing the entire arrears of rent and making payments towards current rent, it is directed that the Petitioner will be entitled to participate in the auction proceedings
Signature Not Verified Digitally Signed W.P.(C) 42/2024 Page 5 of 6 By:Rashmi Dabas Signing Date:05.01.2024 11:28:21 scheduled on 22.03.2024.
8. With the aforesaid directions the petition stands disposed of.
9. Pending applications stand disposed of.
ACTING CHIEF JUSTICE
MANMEET PRITAM SINGH ARORA, J
JANUARY 03, 2024/hp/sk
Signature Not Verified Digitally Signed W.P.(C) 42/2024 Page 6 of 6 By:Rashmi Dabas Signing Date:05.01.2024 11:28:21
