Bombay High Court
BAGLA INDUSTRIES PRIVATE LIMITED, THR ITS DIRECTOR, AURANGABADversusCITY AND INDUSTRIAL DEVELOPMENT CORPORATION (CIDCO) AURANGABAD AND ANR
- Disposal
- Admitted/Allowed/Granted/Rule Absolute
Holding
The Court held that the de‑merger provisions vest the original owner's rights in the successor company, allowing amendment of the appeal title, and that the delay can be condoned per Supreme Court precedent, but no interest or statutory benefits accrue for the delayed period.
Summary
The petitioners, Bagla Industries Private Limited, sought to amend the title of a First Appeal and condone a 972‑day delay in filing it, arguing that the rights of the original owner, Aurangabad Electricals Private Limited, transferred to them under a de‑merger scheme. The de‑merger clause, invoking Sections 391‑394 and 100‑103 of the Companies Act, 2013, purportedly vested all real‑estate rights in Bagla Industries. The Court allowed the amendment, permitting the appeal to be filed in the name of the successor company, and, relying on the Supreme Court’s decision in Suresh Kumar v. State of Haryana (2025), condoned the delay while clarifying that no interest or statutory benefits would accrue for the period of delay. The applications were disposed of and the appeal was registered. The order emphasized that the amendment does not prejudice the respondents and that the statutory right to enhanced compensation remains intact.
Issues considered
- The applicability of the de‑merger provisions of the Companies Act, 2013 to transfer title and rights in a land acquisition proceeding.
- Whether the First Appeal can be amended to substitute the successor company as the appellant.
- Whether a delay of 972 days in filing the appeal can be condoned under Supreme Court precedent.
- Whether the appellant is entitled to interest or statutory benefits for the period of delay.
Legislation cited
- Companies Act, 2013 — s. 100, 101, 102, 103, 391, 392, 393, 394
Subjects
- demerger
- Companies Act
- title amendment
- land acquisition
- compensation
- condonation of delay
- statutory benefits
- interest
- first appeal
Judgment
2026:BHC-AUG:45809
1
921-ca-11591-2022
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
CIVIL APPLICATION NO. 11591 OF 2022
IN FAST/6477/2022
Bagla Industries Private Limited, Thr Its Director, Aurangabad
VERSUS
City And Industrial Development Corporation (cidco)
Aurangabad And Anr
...
Mr. D. R. Jethliya, Advocate for Applicant
Mr. R. K. Ingole, AGP for Respondent-State
Mr. S. V. Deshmukh, Advocate for Respondent no.1
...
WITH
CIVIL APPLICATION NO. 11590 OF 2022 IN FAST/6477/2022
WITH
CIVIL APPLICATION NO. 7079 OF 2020 IN FAST/10157/2020
WITH
CIVIL APPLICATION NO. 7078 OF 2020 IN FAST/10157/2020
WITH
CIVIL APPLICATION NO. 3541 OF 2021 IN FAST/10157/2020
…..
CORAM : AJIT B. KADETHANKAR, J.
DATED : 29TH SEPTEMBER, 2026
P.C. :-
CIVIL APPLICATION NO. 3541 OF 2021
. Mr. D. R. Jethliya, learned Advocate for the applicant
would submit that the controversy over adequacy of the
compensation is pending before this Court between
respondent no.1/CIDCO and the erstwhile owner
M/s. Aurangabad Electrical Private Limited. The proceedings
in the First Appeal have arisen out of the judgment and award
2
921-ca-11591-2022
passed by the Reference Court in Land Acquisition Reference
No.331 of 2006 which was in respect of the property situated
at gut no.40 of Golwadi, Paithan Road, Aurangabad.
2. It is further submitted that in the meantime, the
Company Scheme Petition No.359 of 2016 connected with
Company Summons For Direction No.220 of 2016 and other
connected matters came to be filed before this Court on its
original side at the Principal seat at Bombay. In nutshell, it
was a de-merger of petitioner/company i.e. Aurangabad
Electricals Limited into (1) Bagla Electrical and Electronics
Private Limited (resulting company no.1) and (2) Bagla
Industries Private Limited (resulting company no.2).
3. Mr. Jethliya, learned Advocate takes me to page no.38
of the Civil Application which is titled as ‘Part C DEMERGER
OF THE REAL ESTATE UNDERTAKING INTO BIPL’ . Clause
no.12.1 of the part ‘c’ reads thus:
12.1. Upon the coming into effect of this
Scheme and with effect from the Appointed
Date, the whole of the undertaking and
properties of the Real Estate Undertaking shall
pursuant to the provisions contained in Sections
391 to 394 read with Sections 100 to 103 and
all other applicable provisions, if any, of the Act
and without any further act, deed, matter or
thing, stand transferred to and vested in and /
or be deemed to be transferred to and vested in
3
921-ca-11591-2022
BIPL so as to vest in BIPL all rights, title and
interest pertaining to the Real Estate
Undertaing.
4. He also points out clause no.18 about legal proceedings.
Referring to Clause no.18, Mr. Jethliya submits that it is for
the present applicant to take over all the legal proceedings
pending on behalf of / against M/s. Aurangabad Electricals
Limited which include present proceeding pertaining to
property gut no.40, situated at Golwadi, Paithan Road,
Aurangabad. Mr. Jethliya further submits that the interest of
the original respondent/Ms. Aurangabad Electricals Limited is
now resulted in present applicant by virtue of demerger
proceedings. With this, it is prayed that the appellant be
directed to modify the title clause of Appeal and the
Applications therein by replacing the name of
M/s. Aurangabad Electricals Private Limited by applicant
Bagla Industries Private Limited. Mr. Jethliya submits that no
prejudice shall cause to the appellant or the State Government
not it shall change the nature of controversy.
5. Mr. S. V. Deshmukh, learned Advocate representing the
CIDCO and learned Mr. R. K. Ingole, learned AGP would
submit that the change would be at the risk of the applicant.
4
921-ca-11591-2022
6. After hearing the parties, I deem it appropriate to allow
the application at the risk of applicant. Hence, the following
order:
ORDER
a. Civil Application stands allowed.
b. The appellant shall amend the title clause
of First Appeal and the Applications therein by
entering the name of present applicant in place
of M/s. Aurangabad Electricals Private Limited.
c. Amendment be carried out within a period
of two weeks herefrom.
d. Civil Application stands disposed of.
CIVIL APPLICATION NO. 11590 OF 2022
. Heard.
2. For the reasons stated in the application, the same
stands allowed. The applicants are permitted to file the First
Appeal in the name of Bagla Industries Private Limited instead
of M/s. Aurangabad Electricals Private Limited against the
judgment and award passed by learned Civil Judge Senior
Division, Aurangabad in Land acquisition Reference No.331 of
2006.
3. Civil Application stands disposed of.
5
921-ca-11591-2022
CIVIL APPLICATION NO. 11591 OF 2022
1. Present Civil Application is filed seeking condonation of
delay of 972 days caused in filing the First Appeal against the
judgment and award dated 05.04.2019 delivered by learned
Civil Judge Senior Division, Aurangabad in Land Acquisition
Reference No.331 of 2006. Suffice to note, the Acquiring
Body/CIDCO has already filed the First Appeal challenging the
same judgment and award. The First Appeal filed by CIDCO is
pending before this Court. The applicant is resulting Company
which has come into existence subsequent to demerger of
original owner M/s. Aurangabad Electricals Private Limited.
Obviously as per the scheme, the right of original
claimant/owner is devolved upon the present applicant.
Seeking enhancement in the compensation is a statutory right.
2. The reasons for causing the delay are widely expressed
at paragraph nos.2 to 7 of the application.
3. Mr. S. V. Deshmukh, learned Advocate for the CIDCO
although formally opposed the application, submits that
appropriate order be passed clarifying that the applicant shall
not be entitled for the statutory benefit and interest on the
delayed period.
6
921-ca-11591-2022
4. In view of this, I find that the a case is made out for
condonation of delay in terms of the law laid down by the
Hon’ble Supreme Court in the case of Suresh Kumar Vs. State
of Haryana and ors., (Civil Appeal arising out of (C)
No.670/2020) and connected matters decided on 23.04.2025 .
Hence, the following order:
ORDER
a. Civil Application stands allowed.
b. Delay of 972 days caused in filing the First
Appeal stands condoned.
c. It is clarified that in the event this Court
allows the Appeal, the applicant/appellant shall
not be entitled for any interest and statutory
benefits for the period of delay.
d. Civil Application stands disposed of.
e. Appeal be registered.
FIRST APPEAL ST. NO.6477 OF 2022
. Issue notice to the respondents, returnable on
27.10.2026. Mr. S. V. Deshmukh, learned Advocate waives
service of notice for respondent no.1. Learned AGP waives
service of notice for respondent no.2.
( AJIT B. KADETHANKAR, J. )
Rushikesh/2026
Checking your session…