SWATANTRA VIR SINGH JUNEJA vs JAGDISH KUMAR GOEL

THREE family members of Sri Rajiv Goyal have bought once upon a time some Debentures issued by company then known as Ahmedabad Manufacturing and Calico Printing Company Limited. It is said that the Debentures became unencashable and the financial returns were refused, hence three Debenture holders namely Sri Jagdish Goyal, Smt. Dharmvati w/o. of Sri Rajiv Goyal and Sri Rajiv Goyal s/o Sri Jagdish Goyal went to the District Forum, Ghaziabad with complaints. It transpires that the District Forum has passed some orders relating to the claim whereafter execution proceedings may have also commenced.

MR. Swatantra Vir Singh Juneja, appellant in the three cases is a Senior I.A.S. Officer having retired now. The case pleaded today in these appeals is that since the matter of Ahmedabad Manufacturing and Calico Printing Company Limited had gone to B.I.F.R., the appellant Sri S.V.S. Juneja was appointed Special Director in exercise of the powers conferred by Section 16 of Sick Industrial Companies (Special Provisions) Act, 1985 hereinafter referred to as Sick Companies Act. It is argued by MR. Ajai Bhalla that Sri S.V.S. Juneja got apprehensive of some orders against him as the local police was noticed lurking around his house. It has been averred in paragraph 6 at page 10 of the paper book that in the above referred execution proceedings some warrants have been obtained in the name of the appellant Sri S.V.S. Juneja. It is on the strength of those warrants that, in compliance of the District Forum, Ghaziabad''s order, the police was pursuing the matter. There is challenge to the aforesaid action of the police on the ground that Sections 16 and 17 of the Sick Companies Act made special provisions for appointment of a Special Director under the orders of B.I.F.R. and also made protective provisions for action taken as Special Director so that such a Special Director is not put to any harassment subsequently. When these appeals were filed, notices were issued to the respondents. Notices were also sent to Ahmedabad Manufacturing and Calico Printing Company Limited who was arrayed as opposite party/respondent No. 2 because the said Company stood arrayed as an opposite party in the complaint. By an order passed on the last date, the service on the complainants Sri Jagdish Kumar Goyel, Smt. Dharmvati and Sri Rajiv Goyal has been held sufficient. They have not put in appearance and the matter has gone against them ex parte. So far as company is concerned, notices have come back with an endorsement that the company is closed.

When the case was taken-up on merits, Mr. Ajai Bhalla argued that the warrants could not be made available to him nor to Sri Juneja in spite of efforts which apparently have been passed in execution proceedings arising out of Complaint Case Nos. 454/1997, 455/1997 and 456/1997 of the Court of District Forum, Ghaziabad. He has, therefore, suggested that should there be any difficulty in dealing these matters as appeals, the Commission may exercise its revisional powers and grant the relief sought.

THERE is no doubt that no financial liability or even connection existed between appellant on the one hand and the company on the other. He was more or less a representative of B.I.F.R. and worked only for two years as Special Director without any financial interest in the company. It was reported that the company cannot be rehabilitated, hence the B.I.F.R. recommended winding-up of that company. Under these circumstances, any action against Sri S.V.S. Juneja will be illegal and contrary to the provisions contained in the Sick Companies Act. Exercising the revisional jurisdictions vested in the Commission by the provisions of COPRA, the warrants issued against Sri Swatantra Vir Singh Juneja in the execution proceedings relating to Complaint Case Nos. 454/1997, 455/1997 and 456/1997 are hereby quashed. No executing officer, police or otherwise shall interfere with the life and liberty of Sri Swatantra Vir Singh Juneja on the strength of any warrant said to have been issued by the District Forum, Ghaziabad in execution of the decree which may have been passed in Complaint Case Nos. 454/1997, 455/1997 and 456/1997.

NOTWITHSTANDING this order, the execution proceedings in the original complaint as against the company or any other person impleaded as opposite party in those complaints may go on in accordance with law wholly uninfluenced by the interference regarding warrants only as against Sri S.V.S. Juneja, appellant. All the three revision applications are allowed and disposed of in the aforesaid manner. Let copy of this order be made available to the parties as per rules. Revision Applications allowed.