Case name: Phoenix Arc Private Limited vs. Samarpana Charitable Trust & Ors.
Court/Authority: Supreme Court of India, Civil Appeal No.5182/2025 (Petition for Special Leave to Appeal (C) No.14061/2024).
Order date: 9 April 2025 (signed corrected order).
Underlying orders: High Court order dated 18‑Mar‑2024 (CMP No.6040/2024, OSA SR No.8560/2024) rejecting leave to appeal against Single Judge order dated 5‑Sep‑2022 (OP No.260/2022).
Period of dispute: Relates to property‑sale order dated 5‑Sep‑2022.
Senior counsel for appellant: Mr. Ranjit Kumar (Sr. Adv.).
Senior counsel for Respondent No.1: Mr. Sanjay Nuli (Sr. Adv.).
Senior counsel for Respondent No.2: Mr. Mukul Rohatgi (Sr. Adv.).
Judges: Hon'ble Mr. Justice J.B. Pardiwala, Hon'ble Mr. Justice R. Mahadevan.
Issues / Allegations / Violations
Appellant contended it was not a party before the learned Single Judge, rendering the Single Judge’s order in OP No.260/2022 untenable.
High Court had declined to grant leave to appeal against the Single Judge’s order dated 5‑Sep‑2022.
The Single Judge’s order (para 11) granted permission to sell certain property; para 12 directed that remaining property (Schedule A items 2 & 3) remain in custody of the Trust.
Settlement Deed dated 29‑Jan‑2021 identified mortgagors P.J.K. Sairam and P.K.S. Prashath for a loan secured from Andhra Bank; Phoenix Arc is the assignee under the SARFAESI Act, 2002.
Seven suits are pending between the parties; the Trust should not claim ownership of the property pending resolution.
Findings & Observations
The Supreme Court observed that the Division Bench of the High Court ought to have granted leave to the petitioner, as the petitioner was not a party before the Single Judge.
The Court noted that the interim order dated 19‑Jul‑2024, which stays the Trust’s claim over the property, should continue but must not impede the Chennai Metro Rail Project’s interests.
No substantive comment was made on the merits of the High Court’s order.
Penalties / Settlements / Directions
The Supreme Court set aside the High Court order that rejected leave to appeal.
Leave to appeal was granted to Phoenix Arc Private Limited against the Single Judge’s order dated 5‑Sep‑2022.
The appeal is to be registered and heard by a Division Bench of the Supreme Court within two months from the date of this order.
The interim order dated 19‑Jul‑2024 remains in force, with the clarification that it shall not affect the Chennai Metro Rail Project.
Corrective Actions & Future Obligations
The High Court is directed to adhere to the two‑month time limit for the Division Bench hearing, considering the large public project involved.
All pending applications, if any, are to be disposed of alongside the appeal.
Final Ruling & Enforcement
Leave to appeal granted; the appeal stands disposed of per the signed corrected order.
Pending applications, if any, stand disposed of.
The interim order continues until the Division Bench decides the appeal, without hindering the Chennai Metro Rail Project’s activities.
