Telangana High Court
COMPA/1948/2009 of M Sudhakar Gupta Vs M/s Electrothermics (Pvt) Limited (In Liq) on 31 December 2009
SRI JUSTICE V.V.S.RAO COMPANY APPLICATION No.1948 of 2009 IN COMPANY PETITION No.112 of 2001 ORDER: This application is filed seeking necessary clarification as to whether the Official Liquidator is required to handover possession of the Company (in liquidation) and books of accounts to
THE HON’BLE SRI JUSTICE V.V.S.RAO
COMPANY APPLICATION No.1948 of 2009INCOMPANY PETITION No.112 of 2001
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ORDER:
This application is filed seeking necessary clarification as towhether the Official Liquidator is required to handover possession ofthe Company (in liquidation) and books of accounts to the applicantherein. There is no dispute that by order dated 05.10.2009 made inCompany Petition No.112 of 2001 this Court on remand from theSupreme Court sanctioned the scheme of arrangement/compromisewith the creditors and shareholders as the group with 30%shareholding did not object to the scheme. It is the grievance of theapplicant that after complying with necessary sanction procedureswhen he approached the Official Liquidator attached to this Court fortaking over possession of the Company, Official Liquidator declined todo so as there was no specific direction in the order passed by thisCourt. Therefore, he filed the instant application for necessary orders.
The Official Liquidator has filed report, being OLR No.437 of2009, dated 31.12.2009, stating as under.
It is further submitted that the Official Liquidator had incurred asum of Rs.8,58,740/- towards liquidation expenses from thedate of taking possession to till date. The said expenditurewas incurred out of the Estate & Establishment Fund Accountwith the permission of this Hon’ble Court as the company hadno funds and the secured creditors refused to meet theliquidation expenditure. The break up of the above saidexpenditure is as follows:-i) Watch & Ward Expenses Rs.7,94,200/-(from 25-11-2003 to 30-11-2009)ii) Liquidation expenses such aspostal charges, audit fees,advocate fees, TA, DA, stationaryetc. Rs. 42,940/-
iii) Valuation fees Rs. 21,600/-
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Rs.8,58,740/-
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In view of the above, it is prayed that, if this Hon’ble Courtgrants the relief of the applicant, he may be directed to remitthe expenses incurred by the Official Liquidator amounting toRs.8,58,740/- immediately to recoup the same to the Estate &Establishment Account maintained by this office.
This Court heard learned Counsel for the applicant Sri P.Vikramand the learned Counsel for the Official Liquidator Sri M.Anil Kumar. Itis brought to the notice of this Court that no books of accounts or anybooks of the Company are available with the Official Liquidator. Therefore, the Official Liquidator is directed to handover the Companywith all its assets to the applicant as and when the applicant approaches the Official Liquidator on condition of paying a sum ofRs.8,58,740/- (Rupees eight lakhs fifty eight thousand seven hundredand forty only) towards watch and ward charges and other amountwhich may be demanded by the Official Liquidator incurred towardsliquidation expenses. Both the parties are given liberty to seek anyclarification from this Court.
The Company Application is disposed of accordingly.
31.12.2009
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(V.V.S.RAO, J)
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