Nirmal Lifestyle Limited v. Asset Reconstruction Company (India) Ltd

Nirmal Lifestyle Limited

…Appellant

…Respondent

Case No: Appeal No. 128/2016

Date of Judgement: 17/03/2023

Judges:

Mr Justice Ashok Menon, Chairperson

For Appellant: Mr Rajesh Nagory, along with Mr Rishab Jain, i/b M/s/ MDP Partners, Advocate.

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Facts:

Arguments by the Appellant:

Arguments by the Respondents:

The 1st Respondent contended that the Appellant company entered into the alleged development agreement with the 2nd Respondent with full knowledge of the debt incurred by the 2nd Respondent from the consortium of banks. The agreement itself provided for obtaining an NOC from the banks and financial institutions, which was never obtained. The Appellant proceeded to enter into the agreement with the 2nd Respondent at its own risk, knowing that the entire property was mortgaged and a secured asset. The 1st Respondent alleged that the Appellant is in collusion with the 2nd Respondent in thwarting the SARFAESI measures initiated by the 1st Respondent.

Order:

The appeal was dismissed without costs.

Cases Cited:

Bar Council of Maharashtra vs. M.V. Dabholkar and Ors. (1975) 2 SCC 702

Cited by the Appellant to argue that an unregistered agreement in writing may be used as evidence of the agreement in a suit for damages for its breach.

Relied upon by the Appellant to argue that an unregistered deed of partition is admissible in evidence to prove the division of status.

Sections and Laws Referred:

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)