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In The Matter Of M/s. Usha Network System Limite

    CO.PET. No. 380 of 2002 & C.A No. 2817 of 2014

    Decided On, 04 December 2014

    At, High Court of Delhi


    For the Appearing Parties: Kanwal Chaudhary, Advocate.

Judgment Text

C.A No. 2817/2014 (application under section 481 of Companies Act, 1956)

1. This application has been filed by the Official Liquidator under section 481 of the Companies Act, 1956 ('Act') read with Rule 9 of the Company court Rules, 1965 praying that M/s Usha Network System Limited (In Liquidation) be finally dissolved and the Official Liquidator be discharged as its liquidation.

2. It is stated that M/s Usha Network System Limited was ordered to be provisionally wound up by order dated 03.04.2003 and finally on 11.08.2004, the Official Liquidator attached to this Court was appointed as the Official Liquidator of the Company.

3. On 02.02.2004, 30.01.2004 and 30.01.2004 citations were published in 'Statesman' (English), 'Veer Arjun' (Hindi) and Delhi Gazette. The Official Liquidator took over the possession of the property of the Company situated at Chambaghat, Solan (HP). The assets of the company were sold for Rs.50,00,000/-.

4. As per orders dated 24.11.2009, the Official Liquidator paid first dividend to secured creditors namely State Bank of Patiala for Rs. 47,00,000/- 07.04.2010 and Rs.6,00,000/- on 31.01.2014.

5. The Official Liquidator has filed the present application under section 481 of the Companies Act, 1956 for dissolution of the company and has sought permission to close the books of the Company after transferring the balance amount of Rs.15,504/- to the Common Pool.

6. It is stated by the learned counsel for the official Liquidator that the Official Liquidator has no further asset either moveable or immoveable from which any money may be realized for the company. It is further submitted that there is no possibility of realising any further funds and no claims have been received, therefore, no useful purpose would be served by keeping this matter pending. Rather, the same would be counterproductive.

7. In the case of MEGHAL HOMES (P) LTD. VS. SHREE NIWAS GIRNI K.K.SAMITI & ORS., (2007) 7SCC 753, the Supreme Court, inter alia in paragraph 31 thereof, has held as under:-

'………………when the affairs of the Company had been completely wound up or the court finds that the Official Liquidator cannot proceed with the winding up of the Company for want of funds or for any other reason, the court can make an order dissolving the Company from the date of that order. This puts an end to the winding up process'.

8. In view of the above decision of the Supreme Court and the facts and circumstances of this case, the liquidation proceeding deserve to be brought to an end. Consequently, M/s Usha Network System Limited is dissolved.

9. Book of the company M/s Usha Network System Limited are permitted to be closed by the Official Liquidator is discharged as its Liquidator.

10. The Official Liquidator is entitled to deduct not only its expenses but also Government Commission, etc out of the funds available in the account of the company. The Official Liquidator is permitted to transfer Rs.15,504/- to the common pool fund of the Official Liquidator towards the liquidation expenses, audit

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fee, Income Tax, Government commission, if any. 11. A copy of the order be communicated to the Registrar of Companies within 30 days by the Official Liquidator. 12. The Application is, accordingly, allowed and disposed of. 13. No further orders are called for in the present petition, which also stands disposed of.