Mr. Neehal Mahamulal Pathan vs Registration & Stamps Department Udaipur Rajasthan

H.V. Subba Rao, Member (Judicial)

One Mr. Neehal Mahamulal Pathan, erstwhile Resolution Professional and Member of Monitoring Agency M/s. Udaipur Entertainment World Private Limited filed the above application praying the following reliefs: -

(a) To direct the Respondent No. 1 to comply with order dated 24.02.2022 and to register agreements of the subject flats and commercial units of the Applicant Company in accordance with law.

The brief reasons behind filing the above application by the Applicant are as follows:-

(i) A Company Petition bearing CP No. 1396 of 2020 is filed at the behest of Home Buyers against the Corporate Debtor M/s. Udaipur Entertainment World Private Limited and accordingly, the said CP was admitted by this Tribunal vide its order dated 16th April, 2021 by ordering initiation of CIRP process against the Corporate Debtor M/s. Udaipur Entertainment World Private Limited.

(ii) A Company by name M/s. JVD Life Space submitted a Resolution Plan for taking over the Corporate Debtor Company and accordingly, M/s. JVD Life Space was declared as successful Resolution Applicant and his Plan was duly approved by both the COC as well as by this Tribunal vide its order dated 24th February, 2022 in IA 1850 of 2022 and thus, M/s. JVD Life Space acquired the business, assets along with all legal rights of the Corporate Debtor/M/s. Udaipur Entertainment World Private Limited by stepping into their shoes.

As there was an attachment order passed by the Enforcement Directorate against the assets of the Corporate Debtor, this Tribunal vide its order dated 24th February, 2022 vacated the attachment after applying its judicial mind and after carefully examining the relevant provisions of the Code. The relevant para, Para- 43 of the said order is extracted below for ready reference.

Para 43- “With regard to the attachment order passed by Enforcement Directorate on 02.04.2019 and the same was confirmed by PMLA adjudicating authority in an appeal and that the properties attached vide the order of Enforcement Directorate and PMLA are part of the properties under the Resolution Plan. This Bench is of the opinion that it is empowered to deal with the properties under Section 238 of the IB Code, which contemplates that the provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. However, there was no application made by the RP seeking vacation of the order of attachment passed by PMLA. Further, this Bench in exercise of powers u/s. 238 of the Code r/w Rule 11 of NCLT Rules, vacates the order of attachment passed by PMLA, while approving the Resolution Plan u/s. 31 of the Code”.

Since the attachment order issued by the Enforcement Directorate was specifically vacated by this Tribunal, the Flat Buyers Association M/s Royal Rajvilas Luxury Homes vide their letter 6th May, 2022, requested the DIG Stamps Udaipur to kindly permit registration of the flats and commercial spaces of the Corporate Debtor M/s. Udaipur Entertainment World Private Limited and issue suitable directions to that effect to the concerned Sub-Registrar. Unfortunately, the DIG Stamps Udaipur Rajasthan instead of issuing suitable directions to the concerned Sub-Registrar got sent reply dated 7th June, 2022 through Mr. Sachin Kumar Chayal, Deputy Inspector General of Registration and Stamps Department, Udaipur denying the request on the following grounds:

(a) That they have not received any letter regarding the release of judgment from Enforcement Directorate nor any direction to that effect from NCLT Mumbai.

Aggrieved against the said communication sent by the DIG of Registration and Stamps Department, the Petitioner filed the above IA praying the reliefs mentioned above. It is very unfortunate to receive such reply from a public servant that too from highest rank officer in a Government Department.

It is a fact borne out from record that the DIG of Registration received the copy of above representation from the Flat Buyers along with the copy of the order dated 24th April, 2022 passed by this Tribunal. Therefore, the proper procedure that ought to have been adopted by the DIG in the above referred facts and circumstances is he should carefully read the order passed by this Tribunal and should understand the implications in not following the said order. In case, if he is not able to understand the legal implications, he shall obtain a legal opinion from any of the law officers of the State so as to take a view whether he is bound to implement the said order or not? Instead of doing so, he got sent an irresponsible reply through DIG Registration to make the aggrieved public who are Home Buyers to run from pillar to post for redressal of their grievance as a result of which this Tribunal is burdened with the above application. Hence, this Tribunal under the above referred peculiar facts and circumstances is forced to issue direction to the Sub-Registrar Udaipur to entertain registration of the documents relating to the property which was previously attached by the Enforcement Directorate belonging to the Corporate Debtor/Udaipur Entertainment World Private Limited to avoid further hardship and inconvenience to all the stakeholders.

Accordingly, the above IA is allowed. The Registry is directed to communicate the above order forthwith to the concerned Sub-Registrar within whose jurisdiction the properties are situated by ascertaining the correct address from the RP. Ordered accordingly.