Jaipur: The Rajasthan high court has set aside a Jaipur commercial court order directing the seizure, attachment and auction of properties of 848 textile units in Sanganer for non-payment of 33 crore in a dispute linked to a common effluent treatment plant (CETP).The high court directed the commercial court to reconsider the matter, giving all parties an opportunity to be heard, and to pass a fresh order limited to the scope of execution.The dispute arose from a project for the setting up of a 12.3-million-litres-per-day CETP in Sanganer, the contract for which was awarded in 2015 to Advent Envirocare Technology Pvt Ltd. The company completed the plant but later alleged non-payment of 33 crore in outstanding dues. In the order dated March 17, Justice Sameer Jain held that the commercial court, which is an execution court, cannot go beyond the original decree or arbitral award to create new liabilities.Quashing all consequent enforcement actions, the high court sent the case back to the commercial court for fresh adjudication after hearing all parties, and directed it to remain strictly within the scope of execution proceedings.Allowing petitions filed by the state govt and factory operators, Justice Jain said the commercial court must hear all parties afresh and confine itself to execution proceedings.In Feb, a commercial court in Jaipur had issued stringent directions, holding not only the directors and board members of the textile units but also the state govt financially responsible in the matter. It ordered that if the awarded amount of Rs 33 crore was not paid to Advent Envirocare Technology Pvt Ltd within three months, properties of all 848 units be attached, sealed and auctioned in the presence of an authorised officer. The court further directed the state to first pay the award amount and recover it later from factory operators.In its March 17 order, the high court concluded that the lower court had exceeded its jurisdiction and reiterated that execution proceedings are limited to enforcing the award, not determining new rights or liabilities.
