Authority: Supreme Court of India

Order Date: 13-08-2026

Case Overview

  • Parties: Petitioner – M/s JDA Projects & Anr.; Respondent – M/s Jamnadas Morajee Finance Pvt. Ltd.
  • Nature: Special Leave Petition (Criminal) No.2018/2024 concerning a debt owed by the petitioner to the respondent, arising from a dishonoured cheque.
  • Background: The Court previously ordered on 26.03.2025 that the subject property be placed under the receivership of the Principal District Judge, Mysuru (the Receiver). The petitioner was to negotiate sale of the property (in whole or parcels) within nine months, with proceeds of Rs 10,25,00,000 plus simple interest at 11% per annum from 11‑01‑2023 to be paid to the respondent. Proceeds were to be deposited with the Receiver for disbursement.
  • Subsequent issues: The petitioner sought discharge of the Receiver, citing RBI guidelines that banks issue Demand Drafts (DD) only at execution and registration, causing financing delays. The respondent argued the petitioner had not complied, the debt remained outstanding, and the petition to relieve the Receiver was a tactic to delay repayment.
  • Prior orders referenced: Order dated 24.03.2026 and the earlier order dated 26.03.2025.

Final Outcome

1. The petitioner may continue to negotiate and facilitate sale of the property or its parcels, presenting the sale agreement and consideration to the Receiver, with a copy to the respondent.

2. If the consideration is not less than market value, a draft sale deed must be presented showing the same consideration and a bank loan sanction letter; the Receiver will endorse the deed, specifying that the DD be issued in the name of the Receiver/Principal District Judge.

3. Upon endorsement, the financing bank shall issue the DD as stipulated, after which the sale deed will be executed and registered.

4. The DD shall be handed to the Receiver, who will negotiate the sale as directed.

5. The petitioner is obligated to facilitate the sale on the agreed consideration; failure will be treated as a violation of the agreement.

6. If the consideration is below market value, the Receiver may allow the respondent a right of first refusal to purchase the property at the shown price, which will be set‑off against the amount due to the respondent, and the Receiver will endorse the deed in favour of the respondent.

7. All the above steps must be completed within five months; failure will trigger further orders in Miscellaneous Application No.74 of 2026 filed by the respondent.

8. The Court stays any further sales as of 14‑07‑2026 pending clarification of the objections raised by the petitioner regarding parcels being sold below market value.

9. The Receiver is directed to furnish a comprehensive chart detailing:

  • Division of the total property,
  • Parcels already sold,
  • Market price versus actual sale price for each parcel,
  • Details of remaining parcels and their market values.

10. For parcels where DDs are already with the Receiver, the Receiver must proceed with the sale and include those details in the chart.

11. Further sale requests are to remain in abeyance until the chart and accompanying report are submitted.

12. The Receiver must also provide a Statement of Account showing amounts already disbursed to the respondent and amounts remaining with the Receiver.

13. The petitioner must compute amounts due, credits received, and interest as per the 26.03.2025 order, presenting a balance due as on 30‑09‑2026 and 31‑10‑2026.

14. The Registry shall communicate a copy of this order to the Receiver, and both parties must produce a copy before the Receiver.

15. The matter is listed for further hearing on 15‑09‑2026.

Topics: Court Order, Debt Recovery, Property Sale