NEELDEEP INVESTMENTS P LTD Vs. CUSTODIAN

JUDGEMENT

(1.) Interlocutory Application No. 3 of 2008 has been filed in Civil Appeal No. 1528 of 2005, which had been disposed of on 13th March, 2008 with certain directions.

(2.) The Custodian under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, took out Miscellaneous Petition No. 43 of 1995 on behalf of the notified party, Bhupen Dalai for recovery of Rs. 14,21,65,000/-, with interest, from M/s. Neeldeep Investment Company Private Limited. The said petition was allowed and a decree was passed by a Special Court by its order dated 8th June, 1995. Thereafter, for the execution of the said decree, Miscellaneous Application No. 470 of 1999 was taken out by the Custodian and on that application on 24th November, 1999, the Court passed an interim order restraining the Judgment Debtor and its Directors from in any manner dealing with, disposing of, transferring or alienating or encumbering any of their properties.

(3.) Notice was also issued by the Court to the garnishees who appeared and filed their respective affidavits. In their affidavits, the defence taken was that though they owed various amounts to the Judgment debtor, subsequently shares of different companies were accepted by the Judgment debtor towards repayment of the loans. The Court also referred to the various affidavits filed on behalf of the garnishees and observed that the transactions mentioned by them appeared to be fictitious and had been mentioned only to mislead the court. Accordingly, a show-cause notice was directed to be issued to the noticee to show-cause as to why he should not be tried and punished for having committed criminal contempt of Court.