TMI Blog2023 (7) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... attempt to institute civil proceedings against Petitioner No.2, except by lodging the present F.I.R. This action appears to be mala fide and unsustainable. The petitioners have made out a case for grant of the interim as relief prayed for - List the case in the week commencing 28 August, 2023. - HON'BLE PRITINKER DIWAKER, CHIEF JUSTICE AND HON'BLE ASHUTOSH SRIVASTAVA, J. For the Petitioner : Sankalp Narain For the Respondent : G.A., Pawan Kumar Srivastava, Suresh Singh ORDER 1. Heard Sri Rakesh Dwivedi, learned Senior Counsel assisted by a team of Advocates namely, Sri Sankalp Narain, Sri Ashish Batra, Sri Ankit Banati, Sri Raghav Dwivedi and Sri Eklavya Dwivedi, for the Writ Petitioners, learned Standing Counsel for State-Respondent Nos.1 2, Sri Aditya Bhushan Singhal, learned Counsel for Respondent No.3 and Sri Sikandar Bharat Kochar, learned counsel appearing for Respondent No.4, Directorate of Enforcement. 2. The writ petition has been filed seeking issuance of an appropriate writ, order or direction, declaring Section 420 of I.P.C. as manifestly arbitrary and ultra vires to the Constitution of India on the vice of Articles 14 21 as als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comprising of Shipra Hotels Ltd., Shipra Estate Ltd. and Shipra Leasing Pvt. Ltd. for the purposes of construction and/or development of housing/residential projects. Against the said sanction, a sum of approximately 1995.37 Crores was disbursed. The financial assistance was secured by executing 22 pledge agreements whereby shares of various companies were pledged in favour of Petitioner No.2. 7. Meanwhile, one M/s Kadam Developers Pvt. Ltd. which had a sub-lease of a parcel of land ad-measuring 73 acres allotted by the YEIDA/Respondent No.3 was granted permission to mortgage the land under its sub-lease with Petitioner No.2, Indiabulls Housing Finance Ltd., vide permission dated 11.07.2019. A pledge agreement was also entered by the Shipra Groups and M/s Kadam Developers Pvt. Ltd. with Petitioner No.2, Indiabulls Housing Finance Ltd., regarding pledging of 100% equity shares (demated) of M/s Kadam Developers to secure the loan. The Shipra Group committed default and Petitioner No.2, in terms of the stipulation contained in the loan agreement, issued notices on 20.10.2020 to Shipra Group requiring them to provide alternate security within 15 days and on the failure of the Shipra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequential proceeding vide E.C.I.R. are unwarranted. iii) the dispute is at most a civil dispute and resort to criminal proceedings is tainted with mala fides. In the absence of any criminality in the action taken by the petitioners, the continuation of criminal proceedings would be a travesty of justice and abuse of the process of law. iv) the first charge of YEIDA is still perversed. The sub-lease holder of the subject property is still Kadam Developers and all obligations and concessions under the sub-lease are very much in force. M/s Kadam Developers duly informed YEIDA on 29.07.2021 regarding sale of shares with no objections forthcoming from YEIDA against the sale. There has been no violation of the mortgage permission. The notice dated 11.4.2023 has been withdrawn by YEIDA and no demand has been raised on any party. v) F.I.R. No. 427 of 2023 dated 9.4.2023 registered at Police Station Indirapuram, which has a reference in the impugned F.I.R. No.197 dated 15.04.2023 registered at Police Station Beta-2, Greater Noida, U.P. and E.C.I.R bearing No. ECIR/HIUI/ 06/2023 in Delhi was the subject matter of Contempt Petition (Civil) No.774 of 2023 arising out of Criminal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l proceedings against Petitioner No.2, except by lodging the present F.I.R. This action appears to be mala fide and unsustainable. 15. The Apex Court in Indian Oil Corporation Ltd. versus NEPC (India) Ltd., reported in 2006 (6) SCC 736 observed as under:- 13. .....Any effort to settle civil disputes and claims, which do not involve any criminal offence, by applying pressure though criminal prosecution should be deprecated and discouraged 16. The Apex Court further noticing a growing trend in business circles to convert purely civil dispute into criminal cases while disposing of the Contempt Petition (Civil) No. 774 of 2023 (supra) observed:- 3. In Priyanka Srivastava Vs. State of U.P. , (2015) 6 SCC 287, this Court had noticed that taking recourse to criminal law by bypassing statutory remedies to bring the financial institutions on their knees, has the inherent potentiality to affect the marrows of economic health of the nation. Further, in Vijay Kumar Ghai Anr. Vs. State of W.B. Ors. (2022) 7 SCC 124, this Court quashed the criminal proceedings being abuse of law in a purely civil financial dispute and being a case of forum shopping. Despite these judgments, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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