M/S. DECIBELS INDIA PVT. LTD. Vs. HARYANA STATE INDUSTRIAL & INFRASTRUCTURE DEVELOPMENT CORPORATION LTD. AND OTHERS

JUDGEMENT

(1.) The bone of contention in this writ petition is Industrial Property No. 58, Type-D, Phase V, Udyog Vihar, Gurgaon measuring 316.10 square meters.

(2.) An entity known as M/s Myron Electrical (P) Ltd. had secured funding amounting to Rs. 1.25 crores from respondent No. 3 - Andhra Bank. To secure this loan M/s Suri Associates through its proprietor Sh. R.K. Suri stood as guarantor and mortgaged Industrial Property No. 58 mentioned hereinabove. The property i.e. Industrial Plot No. 58 had been allotted to M/s Suri Associates by respondent No. 1 vide letter dated 20.07.1994. Possession was delivered on 01.08.1994. Registered sale deed dated 14.06.1994 was also executed in favour of M/s Suri Associates. Mortgage in favour of respondent No. 3 was created on 12.02.2002. M/s Myron Electrical (P) Ltd. failed to repay the loan amount and its account was declared as NPA. Possession of the property was taken after issuing notice dated 02.12.2004 and the same was put to sale through public notice inviting tenders dated 02.09.2005. The petitioner gave the highest bid in auction held on 03.10.2005 and vide letter dated 13.10.2005 respondent No. 3 informed the petitioner that the sale in its favour was confirmed subject to certain conditions. The petitioner fulfilled the conditions laid down and sale certificate dated 02.01.2006 was issued in its favour. It may be mentioned that the petitioner had paid a sum of Rs. 73.10 lacs for purchasing the property in dispute. Pursuant to the sale certificate issued in favour of the petitioner, the petitioner had applied to respondent No. 1 for transfer of the property in its name. During the proceedings for this transfer, it was realized that the property in dispute had already been 'resumed' by respondent No. 1 vide resumption order dated 12.09.2003 on account of-

(3.) It further came to light that the said resumption order had been challenged by Sh. R.K. Suri by filing a Civil Suit No. 365 of 2003. In this suit an order dated 04.10.2007 was passed by the learned Civil Court relegating the parties to an Arbitrator for resolution of their dispute. The Arbitrator passed an award dated 03.10.2011 in favour of the petitioner and held that the property in dispute be transferred in favour of the petitioner and that the petitioner would make payment of all outstanding dues of respondent No. 1. This award was challenged by way of petition under Section 34 of the Arbitration and Conciliation Act, 1996 by respondent No. 1 and the learned Additional District Judge, Gurgaon set aside the same declaring it null and void vide order dated 24.03.2015. Thereafter, the petitioner submitted a representation dated 15.05.2015 to respondent No. 1 for transfer of the property in dispute but no action was taken thereupon, hence, the present writ petition has been filed.