WESTERN PRESS PRIVATE LIMITED MUMBAI Vs. CUSTODIAN

JUDGEMENT

(1.) The appellant before us was the unsuccessful applicant in Miscellaneous Application No. 2 of 1999 before the Special Court (Trial of Offences Relating to Transactions in Securities) at Bombay (called for convenience as "the Special Court". The appeal has been filed under Section 10 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter referred to as "the Act") against the order of the Special Court dated 16-2-2000, whereunder the relief sought to set aside the Minutes of the Order dated 5-7-1995 in Miscellaneous Petition No. 30 of 1995 and the Order dated 24-9-1997 in Miscellaneous Application No. 280 of 1997 earlier passed by the Special Court insofar as it related to the appellant and the premises of the appellant situated at Regent Chambers, Nariman Point, Bombay-400 021, on 2nd floor bearing unit Nos. 3 and 4 admeasuring approximately 2030 sq. ft. came to be rejected.

(2.) The relevant facts insofar as they are necessary for a proper appreciation of the issues raised before us, need a brief mention before adverting to the grievance of the parties. M/s. Dhanraj Mills Private Ltd., the 5th respondent in this appeal, is a notified party under the Act. On the information furnished by the Income-tax Department that public money belonging to Banks and Financial Institutions have been siphoned out into the accounts of the notified party and which, in turn, came to be successively siphoned to Kenilworth Investment Company Private Ltd., the 6th respondent herein, and from them to CIFCO Properties Private Ltd., CIFCO Finance Ltd. and M/s. Champaklal Investments (respondents 2, 3, 4 and 6), the Custodian filed Miscellaneous Petition No. 30 of 1995 against all those respondents. When the petition reached the stage of hearing by consent of parties, Minutes of the Order dated 5-7-1995 came to be filed and recorded as per which, among other things Kenilworth Investment Company submitted to a decree in favour of Dhanraj Mills Private Ltd., in a sum of Rs. 11,82,81,316/- with interest @ 20% per annum from 24-4-92 till date of payment and CIFCO Group of Companies and Champaklal Investment Company Private Ltd., submitted to a decree in favour of the 6th respondent and the decretal debts also stood charged in favour of Dhanraj Mills to receive payment from Kenilworth Investment.

(3.) Clause 7 of the Minutes of the Order dated 5-7-95 declared the ownership of the 3rd respondent herein, in the premises bearing unit Nos. 2, 5, 6, 7 and 8 at Regent Chambers, Nariman Point, Bombay, in 2nd floor admeasuring 4931 sq. ft. and unit No. 5 in ground floor admeasuring 451 sq. ft. as well as the residential flat bearing unit No. 36 in 3rd floor of Anita Apartment in Mount Pleasant Road at Malabar Hills admeasuring 575 sq. ft. Clauses 8, 12 and 13 on which both parties fixed their hopes read as follows :