Mumbai, Nov 19: The Bombay High Court has withdrawn its 2022 order sentencing builders Rajen and Hiren Dhruv of Orbit Ventures to six months’ civil imprisonment for contempt of court, after Axis Finance Ltd confirmed that the developers had cleared their outstanding dues and issued a No Objection Certificate (NOC) in their favour.
Bench Recalls Earlier Ruling From March 2022
A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad passed the order on November 17, recalling its earlier ruling of March 23, 2022, in a contempt petition.
The contempt plea had alleged “wilful and intentional breach” of consent terms dated February 15, 2022, which were filed in proceedings arising from a financial dispute between Orbit Ventures and Axis Finance.
Dispute Originated From ₹163.99 Crore Recovery Suit
The dispute stemmed from a commercial suit filed by Axis Finance to recover Rs 163.99 crore with 16.25% annual interest from January 1, 2021. Following an appeal, the parties filed consent terms, but the Dhruv brothers were later found guilty of violating the undertakings. On March 23, 2022, the HC sentenced them to 180 days of civil imprisonment for wilful disobedience.
Builders Later Paid Dues Under Revised Undertakings
The court noted that the respondents subsequently offered revised undertakings for repayment, which were accepted. A May 6, 2025 order recorded a payment schedule of Rs 1.80 crore, and by June 17, 2025, the court acknowledged that 99% of the dues had been paid, prompting the release of their passports.
Axis Finance’s NOC Paves Way for Order Withdrawal
During the hearing on Monday, senior counsel Nitin Thakkar placed on record the NOC issued by Axis Finance. Advocate Niyati Merchant, appearing for Axis Finance, affirmed the settlement and stated that the company had “no objection” to recalling the 2022 sentencing order.
Court Withdraws Receiver, De-Freezes Bank Accounts and Cancels LOCs
Taking note of the “bona fides” of the builders, the bench recalled the March 23, 2022 order. It also discharged the Court Receiver appointed earlier, withdrew the Receiver’s symbolic possession over the disputed land, and directed the petitioner to remove the Receiver’s possession boards.
The bank accounts of both builders—six belonging to Rajen and eight to Hiren—were ordered to be de-freezed. Look Out Circulars issued on July 22, 2022, were also withdrawn.
The court then disposed of the contempt petition and several pending interim applications.
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Builders Were Earlier Ordered to Be Traced by Police
In July 2022, the HC had ordered police to trace the builders after they failed to surrender to serve their sentence. At the time, the bench observed, “There is no sign of money and we are satisfied, looking at the past conduct of these respondents, that they have been only abusing the indulgence granted by the court.”
With the repayment now complete and the lender raising no objection, the matter stands formally closed.
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