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Calcutta High Court
M/S. R. Piyarelall Iron & Steel Private … vs Ram Prasad Agarwala & Ors on 15 May, 2025
Author: Arindam Mukherjee
Bench: Arindam Mukherjee
OD-6
ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
COMMERCIAL DIVISION
ORIGINAL SIDE
IA No. GA-COM 7 OF 2025
In
EC No. 176 of 2021
M/S. R. PIYARELALL IRON & STEEL PRIVATE LIMITED
VERSUS
RAM PRASAD AGARWALA & ORS.
BEFORE:
The Hon'ble JUSTICE ARINDAM MUKHERJEE
Date: 15th May, 2025.
Appearance:
Mr. Rupak Ghosh, Adv.
Mr. Ankan Rai, Adv.
Mr. Ratnesh Kumar Rai, Adv.
Ms. Vipra Garg, Adv.
Ms. Devanshi Deora, Adv.
Ms. Sakshi Kejriwal, Adv.
For Decree-holder/Award-holder.
Mr. Jayanta Mitra, Sr. Adv.
Mr. Mainak Bose, Sr. Adv.
Mr. Debdut Mukherjee, Adv.
Mr. Zeeshan Haque, Adv.
Mr. Altamash Alim, Adv.
Mr. Kaushik Banerjee, Adv.
Ms. Sudipta Paul, Adv.
Mr.Selim Malik, Adv.
Ms. Sarbani Ghosal, Adv.
For the Judgment Debtors/Award Debtors.
The Court: Supplementary affidavit filed on behalf of the applicant in
Court today is taken on record.
2
The matter has a long and chequered history. M/s. R. Piyarelall Iron &
Steel Private Limited obtained an arbitral award dated 16 th December, 2019
against Fair Deal Supplies Limited (in short, Fairdeal). Fairdeal challenged the
said award by filing an application under Section 34 of the Arbitration &
Conciliation Act, 1996. Fairdeal, however, did not provide any security to
secure the awarded sum. M/s. R. Piyarelall, therefor, had put the award in
execution by filing Execution Case No. 176 of 2021. While the hearing of the
Section 34 application was going on, Fairdeal suffered an order in an
application under Section 7 of the Insolvency & Bankruptcy Code, 2016 (in
short, IBC).
The application under Section 7 of IBC was made by Pegasus Assets
Reconstruction Company Private Limited, which in some places referred to as
Pegasus Assets Reconstruction Private Limited (in short, Pegasus), by way of
assignment of debt acquired the debt owed by Fairdeal to Allhabad Bank. In
the meantime, State Bank of India (in short, SBI), a secured creditor of
R.Piyarelall, proceeded against the said company before the National Company
Law Tribunal (in short, NCLT) under Section 7 of IBC. The application under
Section 7 against R. Piyarelall was admitted and a Resolution Professional (in
short, RP) was appointed on 19th January, 2024. Fairdeal challenged the order
of admission of the application under Section 7 of IBC against it by filing an
appeal before the National Company Law Appellate Tribunal (in short, NCLAT).
In the said appeal, an order was passed on 1 st May, 2025. An appeal was also
preferred by challenging the order of admission of application under Section 7
3
of IBC filed against R. Piyarelall. In the said appeal NCLAT passed an order on
11th November, 2024.
By the said order dated 11th November, 2024, it has been held that
whatever assets are realised in execution in favour of the corporate debtor (R.
Piyarelall) are to be deposited in the account of corporate debtor and it is for
the RP to proceed in accordance with law.
The RP on the strength of such order has filed this application in the
execution proceedings initiated by R. Piyarelall against Fairdeal and its
directions and has, inter alia, sought for modification of the order dated 23 rd
August, 2022 to include the property at Coimbatore mentioned in the said
application at Schedule-X and Schedule-Y and to injunct such properties being
sold or dealt with till disposal of the execution application.
On behalf of RP, it is submitted by referring to the order dated 1 st May,
2025, that an immovable property situated at Coimbatore was contended by
Fairdeal to have not been assigned to Allahabad Bank which has come to
Pegasus. RP says that the assignment has taken place in favour of Pegasus
will be apparent from the affidavit of assets and other documents filed by the
Fairdeal in the execution proceedings wherein the said immovable property has
been shown to have been mortgaged to Allahabad Bank from whom debts were
assigned to Pegasus. R.P. therefore, seeks an order of injunction restraining
Fairdeal or its Director from dealing with Coimbatore property in any manner
whatsoever.
4
On behalf of Frontline Corporation Limited (in short, Frontline), the
respondent no.6, in the execution proceedings, it is submitted that by virtue of
the order of admission of an application under Section 7 of IBC made by
Pegasus which has been upheld by NCLAT vide its order dated 1 st May, 2025,
the moratorium which was passed against Fairdeal under Section 14 of the IBC
still continues. In that view of the matter, no decree can be executed against
Fairdeal. Moreover, the order of moratorium has embeded within it in fold the
provisions of Section 14(1) (b) by which embargo on Fairdeal from alienating,
encumbering, transferring or disposing of any of its assets or any legal right or
beneficial interest therein continues to operate.
Assuming without admitting that the immovable property at Coimbatore
had not been assigned to Pegasus through Allahabad Bank, then also the said
property continues to remain that of Fairdeal, the corporate debtor, and as
such the Fairdeal cannot alienate, transfer or deal with the same in view of the
Section 14(1)(b) of IBC.
Considering the facts and the legal provisions as aforesaid, I am not
inclined to pass any further order of injunction at this stage. This application is
required to be heard on affidavits.
Affidavit in opposition be filed by 16 th June, 2025. Affidavit in reply
thereto, if any, be filed by 30th June, 2025.
5
Let this matter appear in the monthly list of July, 2025 under an
appropriate heading.
(ARINDAM MUKHERJEE, J.)
snn.
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