RAKESH JAIN AND ANOTHERversusSTATE OF U.P. AND 14 OTHERS

         HIGH COURT OF JUDICATURE AT ALLAHABAD
                       WRIT - C No. - 34496 of 2019

Rakesh Jain And Another
                                                          .....Petitioner(s)
                                  Versus

State Of U.P. And 14 Others
                                                        .....Respondent(s)

Counsel for Petitioner(s)      : Abhinav Gaur, Anoop Trivedi (Senior
                                 Adv.), Nikhil Agrawal, Prabhav
                                 Srivastava, Shalini Mishra, Shikhar
                                 Kaushal
Counsel for Respondent(s)      : Mahesh Narain Singh, C.S.C., Sanjay
                                 Kumar Mishra, Vrindavan Mishra

Court No. - 1
                 HON'BLE AJIT KUMAR, J.
                 HON'BLE INDRAJEET SHUKLA, J.

1. Heard Sri Nikhil Agarwal, learned Senior Advocate assisted by Sri
Shikhar Kaushal, learned counsel for the petitioners, Sri M.N.Singh,
learned counsel appearing for respondent nos. 2 and 9, Sri Sanjay Kumar
Mishra along with Ms.Josheca Mukerji, learned counsel for respondent
no. 15 and Ms. Shruti Malviya, learned State Law Officer appearing for
the State respondents.

2. The petitioners being the creditors of respondent no. 15 who had taken
land on lease from the Ghaziabad Development Authority, are aggrieved
by the action of the State revenue authorities including the Tehsildar
namely the respondent no. 5 for taking coercive measures against the
petitioners as illegal detention of the petitioner no. 1 took place at the
instance of the Ghaziabad Development Authority while pursuing the
recovery of dues and he was also coerced to sign undated cheques as
security towards the outstanding dues of respondent no. 15, the Ghaziabad
Development Authority.

3. It is contended by learned Senior Advocate that during the pendency of
this petition the insolvency proceedings have come to be drawn under the
Insolvency and Bankruptcy Code, 2016 with the appointment of are Amit
Agarwal as a resolution professional and accordingly notices got issued to
all the creditors and claimant in which the Ghaziabad Development
                                                       WRIC No. 34496 of 2019
                               2


Authority's claim have come to be acknowledged and they are now part of
the Committee of the creditors who had the ultimate responsibility to
approve the plan.

4. It is submitted by Sri Agarwal that in view of the fact that the
proceedings have come to be drawn under the Insolvency and Bankruptcy
Code, 2016, the moratorium as contemplated under Section 14, has come
into force and, therefore, no secured creditor whosoever having the dues
against respondent no. 15, can set up any claim outside the insolvency
proceedings and hence the proceedings now drawn by the revenue
authorities at the instance of the Ghaziabad Development Authority are
liable to be rendered unsustainable.

5. It is contended that in this regard, therefore as on date no individual
claims can be set up except to resolution professional and all such claims
are to abide by the resolution plan which would ultimately after approval
of the company of the creditors would have to be approved by the
National Company Law Tribunal.

6. It is further contended that while the petitioners had to surrender their
passport in terms of the interim order of this Court on 05.11.2019, the
same should now be released and if it has expired the petitioner may get
renewed as per the provisions contained under the Passport Act and Rules
framed thereunder as well as the notification issued by the Ministry of
Home and External Affairs in furtherance of those provisions.

7. Learned counsel appearing for the respondent nos. 2 and 9 have also
not disputed the proceedings drawn under the Insolvency and Bankruptcy
Code, 2016 so also the learned Advocate appearing for respondent no. 15
submits that now all claims against respondent no. 15 depend upon the
resolution plan to be prepared by the resolution professional subject to the
approval of the Company of Creditors and final approval by the National
Company Law Tribunal.

8. Learned State Law Officer representing the State would also agree to
this that once insolvency proceedings have come to be drawn to clear the
debts of the creditors as per resolution plan prepared by the resolution
professional, inasmuch as the commencement of moratorium under
                                                                                         WRIC No. 34496 of 2019
                                                                  3


                                    Section 14 of the Code, 2016. Thus he agrees that no recovery as such
                                    now can be pursued by the revenue authorities separately under the
                                    revenue code. Learned State Law Officer does not dispute also that the
                                    passport which was directed to be deposited by this Court deserves to be
                                    released and the petitioners' right to travel would all depend upon the
                                    provisions of the Passport Act, 1967 and the rules framed thereunder.

                                    9. In view of the above, we quash the recovery certificate dated
                                    28.10.2017 and consequential citation dated 28.11.2017 and hold that all
                                    the creditors of respondent no. 15 would abide by the resolution plan
                                    which may be approved by the National Company Law Tribunal. The
                                    passport that was directed to be deposited by the petitioner under the
                                    order of this Court dated 05.11.2019 shall immediately be released and
                                    handed over to the petitioner. The amount already deposited by the
                                    petitioner which has been invested in the fixed deposit scheme of a
                                    Nationalized Bank shall abide by the final outcome of the resolution plan.



                                                                      (Indrajeet Shukla,J.) (Ajit Kumar,J.)
                                    May 12, 2026
                                    Pratima




Digitally signed by :-
PRATIMA AGRAHARI
High Court of Judicature at Allahabad