Court mandates directors to surrender passports and restricts international travel without permission
In a significant ruling, the Delhi High Court has ordered the attachment of a bank account belonging to FIITJEE Limited's sister concern to recover unpaid rent arrears amounting to Rs. 66,31,915. The court's decision came in response to petitions filed under Section 9 of the Arbitration and Conciliation Act, 1996, by petitioners Cdr. Inder Jit Singh and Mr. Vijay Singh Vasisht against FIITJEE Limited.
The case revolved around unpaid rent for premises previously occupied by FIITJEE Limited as a tenant. Despite the petitioners having regained possession of the premises, the arrears remained unsettled. The High Court, presided over by Justice Sachin Datta, emphasized the necessity of protecting the landlord's claims by attaching the bank account of FIITJEE's sister concern, FIIJEE ESchool Private Limited, held at ICICI Bank's Nehru Place branch in New Delhi.
During the proceedings, the petitioners highlighted a previous court order in a similar case, where payments were made from the sister concern's bank account to settle liabilities. The respondent's counsel cited an inability to pay due to a police attachment of their bank account related to criminal proceedings but failed to provide detailed information.
The court directed the attachment of the aforementioned bank account to the extent of the outstanding arrears and stipulated that this attachment would remain subject to further court orders. Additionally, the court ordered FIITJEE Limited's directors to appear in court and deposit their original passports, restricting them from traveling abroad without explicit court permission.
The case has been adjourned for further proceedings on January 27, 2027, when the court will continue to address the unresolved financial obligations.
Bottom Line :
Arbitration and Conciliation Act, 1996 - Urgent measures of protection under Section 9 - Tenant in arrears of rent - Attachment of bank account of tenant's sister concern to recover arrears - Directors restrained from travelling abroad and directed to deposit passports.
Statutory provision(s):
Arbitration and Conciliation Act, 1996, Section 9
Cdr. Inder Jit Singh v. FIITJEE Limited, (Delhi) : Law Finder Doc id # 2965130
