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Motor Industries Co. Ltd. v/s Karigar Auto Agencies P. Ltd.

    CO. PET. 330 of 2003 & Co. Appl. No. 1344 of 2012

    Decided On, 25 July 2012

    At, High Court of Delhi

    By, THE HONOURABLE MS. JUSTICE INDERMEET KAUR

    For the Petitioner: None. For the Respondent: Ashish Makhija for Official Liquidator, Advocate.



Judgment Text

Oral:

Indermeet Kaur, J.

This application has been moved by the Official Liquidator attached to this Court under Section 481 of the Companies Act, 1956 (for short ‘the Act') inter alia praying that the Company-M/s. Karigar Auto Agencies Pvt. Ltd. (in liqn.) may be dissolved and the Official Liquidator may be discharged from further proceedings. It has also been prayed that the Official Liquidator may be permitted to transfer the balance fund available in the company’s account to the Reserve Bank of India after making payment/creating provision or making payment towards the Government fee, audit fee and liquidation expenses and the Official Liquidator may be permitted to close the books of account of the company.

2. The Official Liquidator States in the application that this Court vide order dated 20.4.2003 had appointed the Official Liquidator as its provisional liquidator. The final winding up order was passed on 20.10.2005.

3. In compliance of the order dated 24.4.2003 the Official Liquidator took the possession of Registered Office of the Company (in liqn.) situated at B-1/174, Ashok Vihar, Phase-II, New Delhi, thereafter, vide order dated 10.8.2006, the inventory of movable assets was also prepared by the office of Official Liquidator. It is further Stated that during the preparation of inventory, there was no record of the company (in liqn.) found in the aforesaid premises.

4. It is further Stated that this Court vide its order dated 30.5.2012 disposed of the Criminal Complaint bearing Crl. (O) No. 28/2005 by imposing cost of Rs. 1 lacs each upon two ex-Directors and the cost stands deposited.

5. It is stated that in terms of order dated 4.12.2009, the Official Liquidator invited the claims from the secured & unsecured creditors and workmen of the Company (in liqn.). However, no claims were received by the Official Liquidator in response to the claim notice published on 29.1.2010.

6. It is further stated that during the proceedings, the Ex-Director of the Company has informed this Court that he has settled the Petitioning creditor of the Company (in liqn.) and there is no other creditor of the company (in liqn.).

7. It is stated that this Court vide order dated 18.4.2012 appointed M/s. G.C. Sharma and Sons, a valuer on the panel of the Official Liquidator, to evaluate the moveable assets of the Company (in liqn.) lying at the premises bearing No. B-1/74 Ashok Vihar Phase-II New Delhi and directed the Official Liquidator to sell the movable assets by circulating handbills as well as by publication of notice on its official website. The moveable assets since have been sold to the highest bidder namely Sh. Amit K. Singh for Rs. 1,40,000/-.

8. It is further stated that this Court vide order dated 30.5.2012 has confirmed the sale in favour of auction purchaser and further directed the Official Liquidator to hand over the said movable assets to the auction purchaser thereafter the vacant possession of the premises may also be handed over to the landlord. Accordingly, the possession of movable assets has been handed over to auction purchaser and vacant possession of the premises was also handed over to the landlord on 13.6.2012.

9. It is stated that there are no other assets available for realization. It is further stated that as per the books of account maintained in the office of Official Liquidator the fund position of Company is Rs.3,73,900/- as on 20.7.2012. It has been prayed that since all claims of the company (in liqn.) have been settled and no other assets were available for further realization and no useful purpose will be served in continuing with the winding-up process, the Official Liquidator may be discharged and the company be dissolved under Section 481 of the Companies Act, 1956.

10. In the case of Meghal Homes (P) Limited v. Shree Niwas Girni K.K. Samiti & Ors., VIII (2007) SLT 235=IV (2007) BC 491 (SC)=(2007) 7 SCC 753, the Supreme Court, inter alia, in paragraph 31 thereof, 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.'

11. In view of the above decision of the Supreme Court and the facts and circumstances of this case, the liquidation proceedings deserve to be brought to an end. Consequently, M/s. Karigar Auto Agencies Pvt. Ltd. is dissolved. The Official Liquidator is also permitted to make payments of Rs. 7,865/- to M/s. G.C. Sharma & Sons, valuer out of the funds of the Company (liqn). The Official Liquidator is also permitted to transfer the balance fund available in the

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Company’s account to the Reserve Bank of India after creating provision or making payment towards the Government fee, audit fee and liquidation expenses. The Official Liquidator is permitted to close the books of account of the company. A copy of this order shall be communicated to the Registrar of Companies within 30 days by the Official Liquidator. The present application and the Company Petition No. 330/2003 are disposed of and the Official Liquidator is discharged. The files and records of the Company be consigned to the Record Room.
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