PREM SAHWANY Vs. CUSTODIAN

JUDGEMENT

(1.) We are in agreement with the conclusion of the Special Court that as far as the Fair-growth is concerned the agreement dated 13/04/1992 did not provide for a forfeiture clause in relation to a sum of Rs. 1,15 crores which was paid as part consideration of the shares agreed to be purchased by Fair-growth from the petitioner herein. The said agreement of 13/04/1992 did, however, contain a forfeiture clause insofar as the petitioner had to buy shares from Deepak Fertilizers. Similar clause which would have entitled the petitioner to forfeit Rs. 1.15 crores in view of the event of Fair-growth not going through with the transaction of purchase of shares is not provided in the agreement of 13/04/1992. Whatever right the petitioner may have against Fair-growth, if any, for the Fair-growth for not completing the transaction the petitioner certainly did not have the right of forfeiture. We see no reason to interfere. Accordingly this special leave petition is dismissed.

(2.) However, the observations made by the High Court and by this Court will not in any way come in the way of petitioner in claiming any relief against Deepak fertilizers in accordance with law.