Supreme Court Committee Appointed to Manage Company Assets and Creditor Claims The Supreme Court appointed a Committee led by Justice K.T. Thomas, with officers from RBI and SEBI, to manage the Company's assets and creditor claims. ...
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Supreme Court Committee Appointed to Manage Company Assets and Creditor Claims
The Supreme Court appointed a Committee led by Justice K.T. Thomas, with officers from RBI and SEBI, to manage the Company's assets and creditor claims. The Provisional Liquidator and Receiver were discharged, transferring assets to the Committee. Fixed Deposits were to be handed over, with the Provisional Liquidator receiving remuneration until month-end. The Committee Chair received a monthly salary, expenses, and staff appointment authority. The Committee could seek Court guidance and consult the Provisional Liquidator. The first meeting was set in Chandigarh, with SEBI and RBI representatives to coordinate, and Transfer Petitions listed in a month.
Issues: Appointment of Committee for asset management and creditor claims, Discharge of Provisional Liquidator and Receiver, Transfer of Fixed Deposits, Remuneration and expenses for Committee members.
The Supreme Court appointed a Committee headed by Justice K.T. Thomas, with officers nominated by the Reserve Bank of India (RBI) and the Securities & Exchange Board of India (SEBI), to take custody of all assets of the Company and manage creditor claims. The Committee was granted the authority to appoint a reputable Chartered Accountant for assistance and was directed to issue advertisements for creditors to submit their claims. The Committee was required to submit a Report to the Court after realizing assets and scrutinizing claims, ideally within six months.
The Court ordered the discharge of the Provisional Liquidator appointed by the Punjab & Haryana High Court and the Receiver appointed by the Bombay High Court. They were instructed to hand over all books, papers, and assets of the Company to the Committee promptly. The Committee was granted the right to use the Company's offices for its work and to visit various locations as necessary.
Regarding the Fixed Deposits standing in the name of the Provisional Liquidator, the Court directed the Deposit Receipts to be handed over to the Committee, with cooperation from the Provisional Liquidator upon maturity. The Provisional Liquidator was allowed to draw remuneration until the end of the month. The Chairman of the Committee was entitled to a monthly remuneration equal to his last drawn salary, along with travel and other expenses. The Committee could appoint staff and safeguard assets as needed.
The Committee was given liberty to approach the Court and was advised to consult with the Provisional Liquidator before his discharge. The first meeting of the Committee was scheduled to be held at the Company's office in Chandigarh, with the Provisional Liquidator requested to ensure the office's readiness before the meeting. The representative of SEBI and RBI were instructed to contact the Chairman promptly, and all Transfer Petitions were to be listed after one month.
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