IndiaversusFairgrowth Investments Ltd. and Anr

                                                                           14-SPMA-7-2026.DOC

                                                                                           Santosh

                                     IN THE SPECIAL COURT AT BOMBAY
                       Constituted under the Special Court [Trial of Offences Relating
                                  to Transactions in Securities] Act, 1992

                                     MISC. APPLICATION NO. 7 OF 2026

                      Tourism Finance Corporation of India                     ...Applicant
                                        Versus
                      Fairgrowth Investments Ltd. and Anr                  …Respondents



                      Mr. Faisal Ali Sayyed, a/w Mr. Padmesh Joshi, i/b Manilal
                           Kher Ambalal, for the Applicant.
                      Mr. Hormaz Daruwalla, Senior Advocate, a/w Mr. J.
                           Chandran, through VC, Ms. Shilp Bhate, through VC
SANTOSH                    and Ms. Payal Mehta, for the Custodian.
SUBHASH               Mr. Saikumar Ramamurthy, for Respondent No.1.
KULKARNI
Digitally signed by
SANTOSH SUBHASH
KULKARNI
Date: 2026.07.27
14:46:11 +0530
                                                     CORAM:       N. J. JAMADAR, J.
                                                                  Judge, Special Court
                                                     DATED :      24th JULY, 2026
                      Oral Order:-

                      1.   Heard the learned Counsel for the parties.

                      2.   This application is preferred by the applicant – decree

                      holder seeking the following prayers:

                           (a)   Direct Respondent No.2-Custodian to forthwith pay to
                           the Applicant the balance decretal amount along with interest
                           accrued thereon until actual payment, from and out of the
                           assets available and lying to the credit of Respondent No.1 –
                           the Notiied Party.
                           (b)   Direct Respondent No.2-Custodian to ile an Afidavit of
                           Disclosure, setting out full particulars and details of the
                           assets and/or amounts presently lying to the credit of
                           Respondent No.1-the Notiied Party.




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3.   This application is essentially a sequel to the order passed

by this Court in the Custodian Report No.18/2023 dated 6 th

October, 2023, whereby the Custodian was directed to release

the sum of Rs.2,82,13,127/- from the attached accounts of

Respondent No.1 – Notiied Party to the Income Tax Department

to discharge its liability under Section 11(2)(a) the Trial of

Offences Relating to Transactions in Securities Act, 1992, (“the

TORT Act, 1992”) and also release the sum of Rs.3,30,00,000/-

to the applicant in partial satisfaction of the decree passed

against the Respondent No.1 in Misc. Application No.484/2004

and Misc. Application No.509/2005 under Section 11(2)(b) of

the TORT Act. While passing the said order this Court has inter

alia recorded as under:

      “7. So far as the payment of principal amount under the
      decree passed in favour of Tourism Finance Corporation of
      India in Misc. Application No. 484 of 2004 and 809 of 2005
      against the Notiied Party, by an order dated 24 th February,
      2023 this Court directed that the decreetal debt be primarily
      satisied from the assets standing to the credit of the account
      of Notiied Party. Indisputably, the aforesaid decrees have
      attained inality.
      8. After discharge of the tax liability of Rs.2,82,13,127/-
      towards the priority period under section 11(2)(a) of the Act,
      1992, the balance amount would be suficient to meet the
      payment     of   the    principal     decreetal amount      of
      Rs.3,30,00,000/- under the aforesaid decrees which is
      covered by section 11(2)(b) of the Act, 1992.”


4.   The Custodian has iled reply to the application.                  It is

contended that a sum of Rs.62,00,000/- is lying in the Bank


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deposits and shares worth Rs.12,00,000/- as of 31 st March,

2026 are held in the Demat account of Respondent No.1 and

those are the only assets of Respondent No.1.           It is further

contended that the certain amount is required to be maintained

in the attached account of the Notiied Party for meeting

expenses for several purposes namely subscription to rights

issues, payment of Income Tax upon Assessment etc.

5.     A sum of Rs.70,00,000/- is due and payable towards the

principal decreetal amount to the applicant. To take care of the

contingencies, this Court considers it appropriate to direct the

Custodian to retain a sum of Rs.12,00,000/- and pay a sum of

Rs.50,00,000/- to the applicant towards partial satisfaction of

the principal decreetal amount of the applicant.

6.     Hence, the following order:


                            :ORDER:


(i)    The application stands partly allowed.


(ii)   The   Custodian   is   directed   to   release   a   sum    of

Rs.50,00,000/- in favour of the applicant towards partial

satisfaction of the principal decreetal amount under Section

11(2)(b) of the TORT Act.




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(iii)   The applicant would be at liberty to revive the prayer for

release of the further amount, if the assets position of the

Notiied Party affords such relief.


        The application stands disposed.

                                           [N. J. JAMADAR, J.]




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