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of <h1>Court's Ruling on Company Asset Dissipation & Disclosure Obligations</h1> The court addressed the dissipation of the company's lands during liquidation, emphasizing the company's continued interest in its assets. Transfers of ... Official liquidator’s right to summon any person Issues:1. Dissipation of company's lands in liquidation in violation of Companies Act.2. Inadequate disclosure of information regarding land acquisition proceedings and transfer of lands.3. Official liquidator's powers to summon individuals for information.4. Request for Collector to appear before the court for disclosure of company's assets.Analysis:1. The judgment addresses the dissipation of the company's lands in liquidation, stating that the interest of the company over its assets continued during winding up. The transfer of land in violation of sections 531 and 531-A of the Companies Act, 1956, is deemed to be avoided by the official liquidator. Detailed orders have been passed by the court on various dates regarding this matter, emphasizing the need to account for all assets of the company during winding up.2. The court expressed dissatisfaction with the disclosure of information related to land acquisition proceedings and transfer of lands. Affidavits filed by the Special Land Acquisition Officer, Collector, and Sub-Divisional Magistrate were deemed incomplete, lacking necessary details. The court highlighted the importance of complete disclosure to facilitate the winding up proceedings effectively and avoid piecemeal information disclosure.3. The judgment elaborates on the official liquidator's powers to summon individuals for information regarding the affairs of the company in liquidation. It emphasizes that the official liquidator can summon any person, irrespective of their rank or status, to provide relevant information. Failure to comply with the official liquidator's summons may result in being under the warrant of the High Court, underscoring the importance of cooperation in the winding up process.4. The court considered a request for the Collector to appear before the court to disclose the immovable property and assets of the company. While acknowledging the official liquidator's authority to make inquiries under rule 160 of the Companies (Court) Rules, it permitted the Collector to appear before the court in chambers on a specified date for proceedings. This decision was made under the residuary powers of the High Court, ensuring comprehensive disclosure of company assets for the effective conclusion of the winding up proceedings.
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