“This Will Be His Last Assignment”: Supreme Court Raps Xalta Foods RP For Defying Court's Possession Order

The Supreme Court of India on Monday directed the Superintendent of Police, Hapur, to break open locks and hand over complete possession of warehouse premises to landlord Prerna Singh, coming down heavily on Naveen Kumar Jain, the Resolution Professional (RP) of Xalta Food and Beverages Pvt Ltd and holding his conduct "contemptuous."

A bench of Justices J.B. Pardiwala and Vijay Bishnoi issued immediate directions after being told that despite earlier orders, only partial possession had been handed over.

“We direct the SP, who is personally present in the Court today to break open all those locks by late evening today, and handover the possession of the main building and machine room(s) to the appellant. We have made the SP understand our order in plain Hindi language so that he may not come forward tomorrow with any lame excuse. The further compliance of our directions shall be reported to us by tomorrow, i.e., 05.05.2026 at 10.30 A.M." the Court ordered.

Senior Advocate Madhavi Diwan, appearing for the landlord, submitted that while access to the outer gate and compound had been given, the plant and machinery remained locked, with the RP refusing full handover and even communicating that possession would not be given.

At this point, Justice Pardiwala sharply questioned the Superintendent of Police: “Aap kya kar rahe hai. Humara order aapko samajh mein nahi aa raha hai? Humne aapko kyun involve kiya hai ismein.”

Diwan further alleged that the RP was acting in collusion to delay compliance and had suppressed relevant communication.

Expressing strong displeasure, the Court said, “We hold him guilty of contempt here and now. Why is this man acting so high handedly, and why are we tolerating him so far. We are putting a question to ourselves.”

Appearing for the Committee of Creditors, Senior Advocate Rajeev Shakdher argued that under the “as is where is” direction, the RP was entitled to first conduct an inventory of the machinery. The Court, however, rejected the justification and proceeded to order immediate enforcement.

The bench also raised suspicion over the delay, remarking, “Is there a deal with some party. RP has a deal with some party?”

Warning of consequences, Justice Pardiwala added, “Tomorrow we will take care of the RP. This will be his last assignment as a Resolution Professional.”

Background

The dispute arises from non-compliance with earlier directions relating to lease rent and possession of two warehouses leased to Xalta Food and Beverages.

On April 28, the Court had pulled up the RP and CoC for failing to comply with its April 16, 2026 order, noting that only ₹33.83 lakh had been paid against the committed Rs. 50.55 lakh monthly rent for April.

Rejecting the CoC's request for time till July 2026, the Court had directed that vacant possession be handed over within one week on an “as is where is” basis, with assistance from the Superintendent of Police, Hapur.

“We direct the RP, CoC and the Superintendent of Police, Hapur to ensure that vacant and peaceful possession of the premises in question is handed over to the appellant before us within a period of one week from today on as is where is basis.”

The Court had also warned that the SP would be held personally responsible for any failure to comply and directed his personal presence.

“On the next date of hearing, we want the Superintendent of Police, Hapur to personally remain present before us. If the possession on as is where is basis is not handed over to the appellant before us as directed above, we shall hold the Superintendent of Police, Hapur, personally responsible for the same.”

The matter is now listed for compliance reporting for Tuesday.