2004 (2) TMI 369 - HC - Companies Law

High Court grants Official Liquidator powers to wind up Basera Cement Limited

The High Court of Rajasthan granted an application under section 457(1) of the Companies Act, 1956, allowing the Official Liquidator powers to wind up ... Winding up - Power of Liquidator Issues: Application under section 457(1) of the Companies Act, 1956 for obtaining court order, failure of Ex-Directors to file statement of affairs, powers of Official Liquidator under section 457 of the Act.In this judgment by the High Court of Rajasthan, an application was made under section 457(1) of the Companies Act, 1956 for obtaining a court order. The company, Basera Cement Limited, was ordered to be wound up, and the Official Liquidator attached to the Court was appointed as its Liquidator. The Ex-Directors of the company failed to file the required statement of affairs as per section 454(1) of the Act. Despite the absence of a reply from the other side, the court, after hearing the counsel, was satisfied that the application should be accepted. The court granted the Official Liquidator powers, with the court's sanction, to settle the list of creditors/contributories, fix dates for settlement, and allow filing of proofs by creditors under section 530 of the Companies Act, 1956. The Official Liquidator was authorized under section 457 to initiate legal proceedings, sell company assets, raise money on asset security, and perform necessary actions for winding up the company's affairs and distributing its assets. The judgment disposed of the application accordingly.