CIFCO PROPERTIES PVT LTD Vs. CUSTODIAN

JUDGEMENT

(1.) -This appeal is directed against an order of interlocutory nature passed by the Special Court constituted under the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter the Act, for short).

(2.) Sale of certain properties is being held. The appellants do not dispute the liability of the properties to be sold for the recovery of dues. The Special Court initially directed the High Court Receiver to hold the sale of the properties. It appears that the High Court Receiver was not able to hold the sale proceedings expeditiously and to the satisfaction of the Special Court and the Court formed an opinion that this was because the High Court Receiver was over-burdened with work. The Court directed further proceedings of sale to be conducted by the Custodian appointed under the Act as requisite infrastructure for functioning as Receiver was available with the Custodian. Accordingly, the Court directed the Custodian to act as Receiver and hold and conduct the sale obviously under the directions of the Court. The Court also directed the progress report to be filed by the Custodian before the Court every four weeks.

(3.) The singular submission made by Dr. Rajiv Dhawan, the learned senior counsel for the appellants, is that the Custodian plays more or less an adversarial role in the proceedings before the Special Court and, therefore, it would not be just and fair to permit the sale proceedings being conducted by the Custodian. It was urged that the proceedings should be held by the High Court Receiver only and he could be directed to conduct the sale proceedings expeditiously. The prayer made on behalf of the appellants has been opposed on behalf of the Custodian-respondent No.1. It was submitted that ordinarily the Custodian holds and conducts the sale of immovable properties as directed by the Special Court and an interference with the impugned order, which is very reasonable and does not cause any prejudice to anyone, is uncalled for.