2004 (2) TMI 381 - HC - Companies Law

Supreme Court allows company in liquidation to hire executives for managing affairs

The Supreme Court granted permission for a company in liquidation to employ two executives as additional staff to manage the company's affairs during the ... Filing and audit of Official Liquidator’s accounts Issues: Granting permission to employ additional staff for a company in liquidation.Analysis:The judgment pertains to a company in the process of being wound up, with directions from the Supreme Court for expeditious disposal. The Official Liquidator has requested permission to employ additional staff to handle various matters related to the company's liquidation. The court notes substantial progress in disposing of properties, recovering dues, and investigating numerous claims from workers and creditors.The Official Liquidator has justified the need for additional staff due to the volume of work and the urgency of the situation. Rule 308 of the Companies (Court) Rules, 1959, empowers the court to grant such permission if deemed necessary. Considering the circumstances and the nature of work required, the court is satisfied that the case for employing additional staff is valid.Consequently, the court grants sanction for the appointment of two executives as additional/special staff to manage the company's affairs during liquidation. A total sum of Rs. 10,000 is approved for their remuneration. The appointments are to be on a contractual basis and will end upon the completion of the winding-up proceedings to ensure the smooth continuation of the company's operations without disruption.