Bombay High Court
THE CUSTODIANversusEXTENSION OF AGREEMENT WITH M/S ISS SECURITY SOLUTION, AT E162 GREATER KAILASH-II BELONG TO FFSL
- Decided
- Disposal
- DISPOSED OFF
- Bench
- N JAMADAR
Holding
The Court allowed the Custodian to extend the contract, make payments from the FFSL account, and break the fixed deposit as requested.
Summary
The Custodian filed a report before the Special Court seeking three specific reliefs: an extension of its security‑guard contract with M/s ISS Security Solutions for another six months, authority to make monthly payments to the security firm from the account of Fairgrowth Financial Services Limited (FFSL), and permission to break a fixed deposit if the account balance proved insufficient. The Director of FFSL, the notified party, appeared in person and stated that FFSL had no objection to any of the requested reliefs. The Court considered whether the Custodian could lawfully extend the contract, draw funds from the FFSL account, and encroach upon the fixed deposit under the custodial framework. Relying on the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, the Judge found no legal impediment to granting the reliefs. Consequently, the report was made absolute in terms of the prayer clauses and the Custodian Report was disposed. The decision effectively authorises the Custodian to continue security services, make the stipulated payments, and utilise the fixed deposit as a fallback source of funds.
Issues considered
- Whether the Custodian may extend the security‑guard contract with M/s ISS Security Solutions for six months on the same terms.
- Whether the Custodian may draw monthly payments from the FFSL account to pay the security firm.
- Whether the Custodian may break a fixed deposit to meet payment obligations if the account balance is insufficient.
Legislation cited
Subjects
- Custodian report
- Contract extension
- Security services
- Fixed deposit
- Payment authority
- Special Court
- Fairgrowth Financial Services Limited
Judgment
1-SPCR4-2026.DOC
Santosh
IN THE SPECIAL COURT AT BOMBAY
Constituted under the Special Court [Trial of Offences Relating
to Transactions in Securities] Act, 1992
CUSTODIAN REPORT NO. 4 OF 2026
The Custodian ...Applicant
Versus
Extension Of Agreement With M/S ISS
Security Solutions, At E-162 Greater
Kailash-II, New Delhi, belonging To FFSL …Respondent
Mr. Hormaz Daruwalla, Senior Advocate, a/w J. Chandran,
SANTOSH
SUBHASH Shilpa Bhate, through VC, and Payal Mehta, for the
KULKARNI Custodian.
Digitally signed by
SANTOSH SUBHASH
KULKARNI
Mr. Yogesh Patel, Director of FFSL.
Date: 2026.07.14
15:11:05 +0530
CORAM: N. J. JAMADAR, J.
Judge, Special Court
DATED : 10th JULY, 2026
1. The Custodian has taken out this report seeking following
reliefs:
(a) Permit Custodian ofice to extend the contract with
M/s. ISS Security Solutions having its Corporate ofice at
775/1, Sai Nagar, Mithapur Extension, Badarpur, New Delhi
– 110044 for deplying total three guards in three shifts of 8
hours duration for round the clock security of attached
property at E-162 Greater Kailash – 11, New Delhi belonging
to M/s. Fairgrowth Financial Servies Limited (FFSL), being
notiied party, for further period of six months w.e.f. 1 st July,
2026 on the same terms and conditions.
(b) Permit Custodian ofice to make the payment to M/s.
ISS Security Solutions every month from the attached
account of M/s. Fairgrowth Financial Services Limited
(FFSL), being notifed party on submission of their claim as
agreed upon. Total expenditure involved for six months
would approximately be Rs.5.44 Lakhs as per prevailing rates
of wages, which is subject to revision from time to time by
Government of NCT Delhi.
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1-SPCR4-2026.DOC
(c) Permit the Custodian to break the Fixed Deposit in the
event the amount standing to the credit of the attached
account is not suficient to make the payment of monthly
bills.”
2. Mr. Yogesh Patel, the Director of FFSL, the Notiied Party,
who appears-in-person, submits that, the Notiied Paty has no
objection to grant the aforesaid reliefs.
3. In view of the aforesaid statement and to preserve
attached assets, the Report is made absolute in terms of prayer
clauses (a) to (c) above.
4. Custodian Report stands disposed.
[N. J. JAMADAR, J.]
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