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Chitra Sharma And Others v. Union Of India And Others
Factual and Procedural Background
The present order is a follow-up to the Supreme Court’s earlier directions dated 21 March 2018 ((2018) 18 SCC 627). Respondent 4, Jaiprakash Associates Ltd. (JAL), had been ordered to deposit a total of ₹200 crores with the Court Registry. JAL has now deposited the first instalment of ₹100 crores. The Court fixes 10 May 2018 as the deadline for the second instalment and lists the matter on 11 May 2018 for further directions. Ancillary issues—including the role of the Interim Resolution Professional (IRP) under the Insolvency and Bankruptcy Code and permissions for directors’ overseas travel—are also addressed.
Legal Issues Presented
The opinion addresses a procedural matter and does not frame distinct legal issues.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Order dated 21-03-2018; (2018) 18 SCC 627 | Required JAL to deposit ₹200 crores and authorised the IRP to finalise a resolution plan under paras 3.5 & 3.6. | The present order enforces the second-instalment deadline, reiterates the IRP’s liberty to proceed, and extends related timelines. |
Court's Reasoning and Analysis
- The Court formally recorded compliance with the first instalment of ₹100 crores and set a firm deadline (10-05-2018) for the remaining ₹100 crores.
- It reiterated that the IRP is free to finalise the resolution plan, while allowing JAL to make a representation to the competent authority, clarifying that no opinion is expressed on its merits.
- An extension was granted to the learned Amicus Curiae to prepare a project-wise chart required by the earlier order.
- IA No. 95464/2017 was allowed, permitting the Joint Managing Director of JAL to travel to Bhutan and Nepal over a three-month period.
- IA No. 45331/2018 was allowed, permitting the Managing Director of JAL to travel to the United Kingdom between 30-04-2018 and 23-05-2018.
- The Court warned that failure to deposit the ordered amount would lead to attachment of the personal properties of the directors concerned.
- Any funds already deposited are to be invested in short-term fixed deposits with a nationalised bank to preserve their value.
Holding and Implications
ORDER: JAL must deposit the second instalment of ₹100 crores by 10-05-2018; the IRP may proceed with the resolution plan; time for the Amicus Curiae’s report is extended; international travel permissions for two JAL directors are granted; non-compliance will result in attachment of directors’ personal properties; deposited funds shall be kept in short-term fixed deposits.
Implications: The decision enforces monetary compliance and facilitates ongoing insolvency-resolution efforts. Its effect is confined to ensuring adherence to prior directions and safeguarding the interests of stakeholders; no broader legal precedent is established.
Order
WP (C) No. 744 of 2017, etc.
1. In pursuance of our earlier order dated 21-3-2018 (2018) 18 SCC 627, Respondent 4, Jaiprakash Associates Ltd. (JAL) has deposited the first instalment of Rs 100 crores before the Registry of this Court. As per the said order, it is required to deposit the second instalment of Rs 100 crores by Thursday, 10-5-2018. Let the amount be deposited on or before that day. Matter be listed on Friday, 11-5-2018 for passing further directions with regard to deposit. That apart, as indicated in the said order, the IRP will be at liberty to finalise the resolution plan in terms of paras 3.5 and 3.6 of the earlier order (2018) 18 SCC 627. M/s JAL is at liberty to submit a representation to the competent authority. The representation shall be considered in accordance with law. We specifically make it clear that we have not expressed any opinion on that score.
2. The time granted to Mr Pawanshree Agrawal, learned Amicus Curiae to prepare a projectwise chart, as indicated in the previous order dated 21-3-2018 (2018) 18 SCC 627, is extended till the next date of hearing.
IA No. 95464 of 2017 in WP (C) No. 744 of 2017
3. This IA has been filed for grant of permission to Mr Pankaj Gaur, Joint Managing Director of JAL, to travel to Bhutan and Nepal on multiple occasions between a period of three months. The prayer stands allowed in terms of additional affidavit being IA No. 95464 of 2017.
IA No. 45331 of 2018 in SLP (C) No. 24001 of 2017
4. This IA has been filed seeking permission on behalf of Mr Sunny Gaur, Managing Director, JAL, the applicant, to travel to the United Kingdom between 14-4-2018 and 30-4-2018. An additional affidavit has been filed in the said IA wherein the applicant has sought to reschedule the dates of his travel to UK. He now intends to travel to UK between 30-4-2018 and 23-5-2018. Prayer, in terms of the additional affidavit, stands allowed. Needless to say, if the amount, as directed, is not deposited within the time granted, steps shall be taken to attach the personal properties of those Directors. The amount, if any, already deposited and lying with the Registry may be invested in a short-term fixed deposit with a nationalised bank.
Court Masters
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