Delhi HC slaps a fine of Rs 5 Lakh against company MD

New Delhi [India], July 21 (ANI): The Delhi High Court has slapped a fine of Rs 5 lakhs against the petitioners ABAN Exim Private Limited and others for not abiding by the court order dated July 9, 2021, besides, wasting judicial time and allowed BMW India Financial Services Private Limited to forthwith take possession of the vehicle Bentley Continental Flying SV8, financed by it.
As the petitioners have not abided with its undertaking regarding pending instalments along with interest, the court also said why proceedings are not initiated against the petitioners ABAN Exim Private Limited and others for willful violation of the court orders.
The counsel appearing for the petitioners had informed the court on the hearing date (July 9) that all pending instalments along with interest would be paid within a week from that day. Taking the account of the statement, the court had directed the petitioners to abide by the said statement during the proceedings.
Later, the bench was informed about the non-payment of dues by the petitioners, the court slapped a fine of Rs 5 lakhs against the petitioners directing to be deposited with Delhi High Court Legal Aid Services Committee.
"The petitioners have not honoured the statement made to the court and have defaulted in paying the pending instalments along with interest," Justice Vibhu Bakhru said.
"This court does not consider it apposite to absolve the petitioners from the statement made on 09.07.2021. This court is also of the view that the considerable judicial time has been wasted and therefore petitioners must be visited with cost".
The court directed that the respondent is at liberty to forthwith take possession of the vehicle financed by it with the assistance of the local police for executing so. The petitioners had availed a financial loan of Rs 2,83,41,158 from the respondent. The said loan was agreed to be serviced in 76 Equated Monthly Instalments of Rs5,10,229.
The court also noted that the vehicle was not purchased for any commercial use but is, inter alia, being used by the Managing Director of the company. Therefore, the MD of the company has been asked to appear on the next date of hearing, September 29, 2021.
The petitioners ABAN Exim Private Limited have filed the petition under Section 9 of the Arbitration and Conciliation Act, 1996, praying to stay the operation of the letter dated 14.09.2020 and restrain the respondent BMW India Financial Services Private Limited from taking possession of the vehicle being 'Bentley Continental Flying S V8'. (ANI)