New Delhi, Aug 11 The Supreme Court on Tuesday reserved its verdict on a batch of pleas related to the execution of a money decree of Rs 500 crore passed by a UAE court in favour of Ras Al Khaimah Investment Authority (RAKIA) and against Hyderabad-based industrialist Nimmagadda Prasad and his firms.
A bench comprising Chief Justice Surya Kant and justices Joymalya Bagchi and V Mohana heard senior advocate Abhishek Singhvi, representing RAKIA, and senior lawyer D S Naidu on behalf of judgement debtor Prasad before reserving the judgement.
RAKIA has filed as many as four petitions in the top court seeking execution of the money decree against Prasad and others.
It has also made Matrix Pharmacorp Private Ltd, Tianish Laboratories Private Ltd and Moschip Technologies Ltd as parties.
During the hearing, Singhvi said, "Nimmagadda Prasad is making fun of the Indian judicial system."
The bench said that it would not sit on judgement over the money decree passed in the matter.
Earlier, the bench had taken note of the development that a mediation process undertaken by former Chief Justice of India U U Lalit to resolve the case had failed.
It had agreed to hear the pleas related to the execution of the money decree passed by a UAE court in favour of RAKIA.
On March 16, the CJI-led bench had appointed Lalit as the sole mediator to amicably resolve the dispute over the execution of a money decree of Rs 500 crore passed by the UAE court in favour of RAKIA and against Prasad.
The bench had said that it was not going to hear interim applications and will accord the final hearing on the main case.
RAKIA is seeking to enforce a UAE civil judgment for 267,941,374 dirham (approximately Rs 543 crore principal and Rs 643 crore with interest).
The case stems from the 'Vanpic Project', a failed 2008 joint venture to develop ports and an airport in Andhra Pradesh.
RAKIA has alleged that Prasad, in collusion with former RAKIA CEO Khater Massaad, misappropriated USD 120 million intended for the project.
The counsel for Prasad had earlier informed the bench that the industrialist deposited Rs 125 crore as cash security as directed through a previous order.
He had also said that the original title deeds of a 37-acre land parcel in Telangana have also been submitted in the court. He added that the land parcel is free from encumbrances.
He had also said that his client was willing to undergo mediation for an amicable settlement of the case.
Singhvi had said that they were agreeable to the time-bound mediation to resolve the dispute with a condition that the status quo about the assets of Prasad be maintained and no third party be created till the conclusion of mediation.
Earlier, the top court had directed Prasad to deposit Rs 125 crore in cash security and submit the original title deeds of the 37-acre land parcel in Telangana in the case stemming from the failed 2008 joint venture to develop ports and an airport in Andhra Pradesh.
It had granted time to the industrialist to propose an alternative arrangement for the remaining security.
The bench had also asked Prasad to furnish a security of Rs 600 crore for hearing his plea against the UAE decree.
The court took note of the affidavit filed by Prasad in compliance with its February 12 order and analysed the proposal to deposit the security worth Rs 600 crore.
"In a purported attempt to honour the observations, which this court proposed to issue on the previous date re: furnishing a security comprising Rs 600 crore with the Registry of this Court, the deponent – respondent no. 5 has offered the following three assets," the bench noted in the order.
The businessman offered shares and assets allegedly valued at Rs 212 crore, presently attached by commercial courts under orders passed on September 5 and October 6, 2023.
Besides additional cash security of Rs 125 crore, Prasad also offered a 37-acre land parcel at Devarayamjal village in Medchal-Malkajgiri district, claimed to be worth Rs 408 crore.
On the issue of the 37-acre property, known as Medchal Land, the bench said the original title deeds should be deposited with the registrar of the top court with an affidavit of undertaking that the land is free from all encumbrances except that it was earlier attached by the Enforcement Directorate and was released subject to the furnishing of an indemnity bond.
On the issue of additional cash security of Rs 125 crore, the bench took note of the statement of Subramanium that the amount shall be deposited within one week.
"On doing so, the registry is directed to keep that amount in the UCO Bank of the Supreme Court in a high-interest-bearing FDR initially for a period of six months with an auto-renewal facility," the bench had said.
It said the interim arrangement regarding the security shall be without prejudice to the rights of the parties.
