Deposit Rs 46 crore by July 31: Delhi HC to Ansal Properties
The Delhi HC order came after Landmark Property Development and Company Limited moved the court, seeking execution of a Rs165 crore award that it won in arbitration last September.Updated: Jun 04, 2019 11:18 IST
Hindustan Times, New Delhi
The Delhi high court has directed Ansal Properties and Infrastructure Limited to deposit Rs 46 crore to the high court registry after Landmark Property Development and Company Limited moved the court, seeking execution of a Rs165 crore award that it won in arbitration last September.
Justice Rajiv Shakdher said that part of the amount should be deposited to the registry before July 31.
“The respondents will deposit the sum principal of Rs 46.01 crores on or before 31.7.2019,” the court said.
The court’s order came while hearing pleas by both the Landmark Group and the Ansals. The Landmark Group filed an execution petition to claim the Rs 165 crore award it won from a process where retired Supreme Court justice RC Lahoti was the sole arbitrator.
The Ansals had challenged the arbitral award.
In 2004, the Landmark Group and Ansal Group formed a joint venture for the development of real-estate projects at Ghaziabad, Meerut, and Karnal. However, in 2011, the groups decided to part ways due to some differences.
As per the separation agreement, the Ansals Group was supposed to pay Rs 108 crore to Landmark Group with interest. However, despite a definitive legal agreement, after making a part payment, the Ansal Group stopped paying, and a dispute arose, the Landmark Group alleged.
In 2017, the disputes were referred to retired justice Lahoti, who was appointed as a sole arbitrator with mutual consent of both parties.
In November 2018, the arbitration was decided and the tribunal directed the Ansal Group to pay Rs 165 crore with an interest of 18% after the date of the award.
This was challenged by the Ansals in the high court, which, on April 25, directed the Ansals to deposit Rs 46 crore as deposit before hearing of the appeal.
The order came after senior advocate Rajiv Nayar, appearing for the Ansals, said that the group could pay a principal sum of Rs 46.01 crore, sourced from the selling properties under the sway of an order of injunction passed on December 17, 2018.
The single-bench judge said that upon the submission of the amount in the registry, the amount will be invested in an interest-bearing fixed deposit maintained with a nationalised bank. It also imposed a stay on the arbitral award till further orders of the court.
A spokesperson for the Landmark Group alleged that after the order, the Ansals have been trying to fabricate charges against them by filing frivolous criminal cases against all members of Dalmia family, the promoters and directors of the company, as well as its senior officers, with a sole motive of harassment.
Documents seen by HT claim that the Ansals have had a history of “bad faith” dealings with numerous investors, including foreign ones, as well as customers.
The spokesperson said that the company’s senior officials received threats after the court order, following which they made a complaint to the police. However, no FIR has been registered so far.
Pranav Ansal, vice chairman and managing director of the Ansal Properties and Infrastructure Limited, said that his company will comply with the Delhi High Court order and deposit Rs 46 crore, which has already been arranged.
Ansal also contended that the allegations made by the Landmark Group are “false”.
First Published: Jun 04, 2019 11:18 IST