CIT vs. PANACEA BIOTECH LTD

Co. App. No.16/2012 & Ors.

Page 1 of 12

$~8 to 29 * IN THE HIGH COURT OF DELHI AT NEW DELHI + Co. App. No.16/2012 & CM Nos.3396/2012, 13449/2012

UPPALAPATI SATYANARAYANA VARA PRASAD

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.15/2012 & CM Nos.3355/2012, 13445/2012

LATHA JAMES

..... Appellant Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.17/2012 & CM Nos.3402/2012, 13450/2012

P. RAVINDER

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand,

Co. App. No.16/2012 & Ors.

Page 2 of 12

Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.18/2012 & CM Nos.3405/2012, 13451/2012

MRS. SARITA AGGARWAL

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.19/2012 & CM Nos.3412/2012, 14465-14469/2012

MADINEEDI SITISHA

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax

Co. App. No.16/2012 & Ors.

Page 3 of 12

Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.21/2012 & CM Nos.3440/2012, 13452/2012

MRS. A SHYLAJA REDDY

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.22/2012 & CM Nos.3445/2012, 13453/2012

RAJESH AGGARWAL

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.36/2012 & CM No.6995/2012

N. SHANTA RAM

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

Co. App. No.16/2012 & Ors.

Page 4 of 12

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.37/2012 & CM No.7149/2012

J. YEDUKONDALU

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.38/2012 & CM No.7170/2012

P. PRITHVINATH REDDY

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax

Co. App. No.16/2012 & Ors.

Page 5 of 12

Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.39/2012 & CM No.7182/2012

SARITHA AGGARWAL

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.40/2012 & CM No.7188/2012

SARITA AGGARWAL

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.41/2012 & CM No.7253/2012

B. SANGEETHA

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey,

Co. App. No.16/2012 & Ors.

Page 6 of 12

Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.46/2012 & CM No.8400/2012

MRS. N. VAKULADEVI AND V. RAJINI ..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.47/2012 & CM No.8407/2012

MS. SRIKANTH

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance

Co. App. No.16/2012 & Ors.

Page 7 of 12

Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.48/2012 & CM No.8412/2012

RUDRA RAJU VENKATA RAVI KRISHNA ..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.49/2012 & CM No.8416/2012

RUDRA RAJU VENKATA RAVI KRISHNA ..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.50/2012 & CM No.8442/2012

Co. App. No.16/2012 & Ors.

Page 8 of 12

MS. SRIKANTH

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.53/2012 & CM No.8680/2012

GOLLOPUDI SRI HARI

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.54/2012 & CM No.8723/2012

KV RAMANA RAO

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr.

Co. App. No.16/2012 & Ors.

Page 9 of 12

Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.55/2012 & CM No.9136/2012

RUDRA RAJU VENKATA RAVI KRISHNA ..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

+ Co. App. No.56/2012 & CM No.9455/2012

MRS. V. RAJINI

..... Appellant

Through: Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Love K. Sharma and Mr. V. Anand, Advocates.

versus

JVG FINANCE AND ORS.

..... Respondents Through: Mr. Shailendra Singh along with Mr. Yashpal Singh, Advocates for JVG Finance Group.

Mr. Puneet Gupta along with Ms. Gayatri Verma, Advocates for the Income Tax Department.

Mr. Rajiv Bahl, Advocate for Official Liquidator.

CORAM:

Co. App. No.16/2012 & Ors.

Page 10 of 12

HON'BLE THE ACTING CHIEF JUSTICE

HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW

[Common Orders]

O R D E R % 06.09.2012

Co. App. No.16/2012 & Ors.

Page 11 of 12

deeds. It was on the ground that all these appellants were bona fide purchasers; they did not know about the passing of the Order dated 18.10.1997 by the RBI or the Order of this Court dated 05.6.1998 appointing the Provisional Liquidator; they had paid the entire consideration for the plots in question as per the Agreements to Sell and therefore, it was a fit case for passing the Order under Section 536(2) of the Companies Act. 4. It cannot be disputed that sale consideration paid by the appellants to Col. Ganapathy and received by him on behalf of the company was without any authority of law. Likewise, the sale deed executed in favour of the appellants will also be of no avail being of a date after the passing of the Orders by the RBI and of appointment of Provisional Liquidator. However, at the same time, the learned Company Judge could go into the question as to whether the appellants are bona fide purchasers of the property in question or not. 5. As pointed out above, even the one man Committee has accepted the validity of the Agreements to Sell which were executed much prior to the filing of the winding up petition. In these circumstances, the learned Company Judge could go into the question as to whether the appellants are bona fide purchasers and even if the consideration paid by them to Col. Ganapathy was not valid, whether the sale deed can be validated after receiving the balance consideration. All these questions are not determined by the learned Single Judge while dismissing the application of the appellants under Section 536(2) of the Companies Act. 6. During the pendency of these appeals, some new facts have also come to the notice of this Bench. It is pointed out by the learned counsel for the Official Liquidator that the Income Tax Department had passed attachment order dated 04.9.1998, i.e., after the appointment of the Provisional Liquidator but before the execution of the Sale deeds. Mr. Bahl also points out that the

Co. App. No.16/2012 & Ors.

Page 12 of 12

learned Company Judge has referred the matter to Serious Fraud Investigation Office, report whereof is awaited. The said report shall also have bearing on the outcome of these applications. 7. For all these reasons, we set aside the impugned orders of the learned Company Judge and remit the case back to the Company Judge for decision on merits in the light of the observations made by us in this Order and also taking into consideration the attachment by the Income Tax Department as well as findings given by the SFIO. 8. Applications filed by the appellants shall be listed before the learned Company Judge for directions on 14th September, 2012, the date already fixed by the Company Judge. 9. All these appeals are disposed of in the aforesaid terms.

ACTING CHIEF JUSTICE

RAJIV SAHAI ENDLAW, J SEPTEMBER 06, 2012 pmc