ASHISH SETH Vs. SUMIT MITTAL
LAWS(SC)-2020-10-11
SUPREME COURT OF INDIA
Decided on October 09,2020

ASHISH SETH Appellant
VERSUS
SUMIT MITTAL Respondents

JUDGEMENT

M.R.SHAH, J. - (1.)The dispute is between the two groups - Seth Group and Mittal Group. Both, the Seth Group and Mittal Group entered into a Memorandum of Settlement (MOS) dated 4.5.2015, which ultimately was made a part of this Court's order dated 5.5.2015, disposing of Writ Petition (Criminal) No. 5 of 2015 and Writ Petition (Criminal) No. 11/2015. Non-compliance of the order passed by this Court in the aforesaid writ petitions is the subject matter of the present contempt petition No. 34/2016 initiated by the Seth Group. After considering the rival submissions and the relevant clauses in the MOS dated 4.5.2015 and after considering the obligations of the Seth Group and the obligations of the Mittal Group under MOS dated 4.5.2015 and after having noted and considered the material on record, this Court in the earlier detailed order dated 24.4.2020 specifically held that the Mittal Group have deliberately and wilfully not fulfilled their obligations which are required to be fulfilled under MOS dated 4.5.2015. This Court also opined that as such Mittal Group have rendered themselves liable for the action under the Contempt of Courts Act. However, before taking any further action, this Court granted further two months' time to the Mittal Group, namely, Shri Sumit Mittal, Shri Madhur Mittal and TFIPL, to fulfil their part of obligations under MOS dated 4.5.2015, more particularly,
(i) To pay the entire EDC liability of TFIPL with interest in relation to license Nos. 34, 35 and 36 other than the share of the EDC liability which the Seth Group has undertaken to pay as per Clause 1.2 of the MOS;

(ii) As per Clause 1.2, EDC liability of the Seth Group is to the extent of Rs.25,27,92,000/-, out of the total EDC liability of TFIPL in relation License Nos. 34, 35 and 36 as on 24.03.2015 together with interest accrued thereon from 24.03.2015. Therefore, the Seth Group shall make the entire payment of Rs.25,27,92,000/- along with the interest accrued thereon from 24.03.2015 towards their EDC liability in respect of License Nos. 34, 35 and 36 of 2007;

(iii) The Mittal Group is hereby further directed to renew the license Nos. 34, 35 and 36 of 2007; to execute GPA by TFIPL (as per Clause 5.3), Board Resolution by TFIPL for availing benefit under EDC Relief Policy (as per Clause 1.2.1), NOC without any conditions (as per Clause 8) to the Seth Group;

(iv) Thereafter, the DTCP to bifurcate the Seth Group's portion of the land in accordance with law and as per the policy and/or the rules and regulations, if any. It is also observed that it will be open to the respective parties to avail the benefit of the applicable EDC Relief Policy, which may be considered by the DTCP in accordance with the applicable EDC Relief Policy, if any.

This Court specifically directed that the entire exercise shall be completed within a period of two months from the date of lifting lockdown in the concerned area, failing which this Court shall proceed to pass appropriate further order/orders under the Contempt of Courts Act for non-fulfilment of the obligations by the respondents - Shri Sumit Mittal, Shri Madhur Mittal and TFIPL.

(2.)It appears that despite the above specific directions, license numbers 34, 35 and 36 of 2007 are not renewed by the Mittal Group and because of the non-renewal of the aforesaid licensees, even the balance amount of EDC liability has not been paid by the Seth Group and even the Mittal Group has also not paid their liability towards the EDC in respect of the aforesaid license numbers 34, 35 and 36 of 2007 and therefore the ultimate sufferer is the home buyers who are waiting for their homes.
(3.)Seth Group has filed Interlocutory Application No. 78952 of 2020 for the following reliefs:
i) allow the present application and direct that in the event the Mittal Group still fails to comply with its obligations under the MOS dated 04.05.2015, as reiterated in the directions of this Court dated 24.4.2020, the bifurcation and renewal of license Nos. 34, 35 and 36 of 2007 be granted in favour of the Seth Group, subject to any further conditions;

ii) direct that consequent to the bifurcation and renewal of licenses in question, the Seth Group shall handover the apartments to the flat buyers within a time bound manner, under the control and direction of Director General Town and Country Planning, Haryana.

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