RAJESH D.VORA Vs. AARTI MEHTRA

JUDGEMENT

(1.) The learned Single Judge in exercise of the jurisdiction conferred by Section 34 of the Presidency Towns Insolvency Act, 1909, has directed that the Appellant be committed to civil prison for a period of six months on the ground that he had removed the properties in his possession without the leave of the Official Assignee.

(2.) The Respondent, Marine Container Services Private Limited has a decree in its favour which was passed in a summary suit on 31 March 2000 for an amount of Rs.17.75 Lakhs together with interest on the principal sum. The decree has not been satisfied. The Appellant was adjudged as an Insolvent on 5 August 2003. Since the Appellant was not cooperating with the Official Assignee, Rule Nisi was taken out, which was made absolute on 4 December 2006. A warrant of arrest was issued on 2 December 2009. Inspite of the warrant, the office of the Sheriff and the Cuffe Parade Police Station were unable to arrest the Insolvent. On 6 May 2010 the Court was informed by the Deputy Sheriff and by the PSI attached to Cuffe Parade Police Station that the orders of the Court would be complied with within two weeks by the arrest of the Insolvent. The Insolvent appeared before the Court and the order of arrest was stayed on his assurance that he would attend the office of the Official Assignee twice in a week and would cooperate with the Official Assignee.

(3.) The Official Assignee had taken possession of an industrial gala at Sewree, belonging to the Insolvent. A Motion was taken out in the insolvency proceeding by third parties alleging that the Insolvent had sold the gala to them under an agreement dated 7 September 2007. The third parties, thereafter instituted a suit before this Court, seeking reliefs in respect of the gala. An affidavit was filed by them annexing a Memorandum of Understanding dated 20 September 2006 with the Insolvent, showing a consideration of Rs.22.50 Lakhs. The final agreement of sale, however, reflected a consideration of Rs.11.50 Lakhs. The third parties stated before the Court that after the gala had been sealed by the Official Assignee, the Insolvent issued a cheque in favour of an unnamed payee on 31 May 2010 for a sum of Rs.22.51 Lakhs.