Vacant possession under Section 446: Official Liquidator to surrender premises on agreed waiver and deposit.

Direction sought for delivery of vacant possession of premises formerly let to a company in liquidation under company law; court recognises that the company in liquidation no longer requires the premises but some records and articles remain. Parties agreed that petitioner will waive arrears claims and deposit a specified sum partly as asset value and partly for transportation; Official Liquidator accepts retained items' value is limited and retaining them imposes security and cost burdens. On these agreed terms the Official Liquidator is directed to hand over vacant possession within one month upon waiver and deposit.

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Issues: Whether the Official Liquidator should be directed to remove the seal/lock and hand over vacant possession of premises rented to the company in liquidation to the petitioner on specified terms under section 446 of the Companies Act.

Analysis: The petition seeks a direction under Section 446 of the Companies Act, 1956 for delivery of vacant possession of premises formerly let to the company in liquidation. The Official Liquidator acknowledges the premises were let to the company and that the company in liquidation no longer requires the premises; some records and articles of the company remain at the premises. The parties have agreed terms: the petitioner will relinquish claims for arrears of rent and deposit Rs. 3,000 (Rs. 1,500 treated as value of assets and Rs. 1,500 for transportation of records to Jaipur). The Official Liquidator represents that the items' value does not exceed Rs. 1,500 and that retaining records at the premises imposes security and cost burdens. On these agreed terms, handing over possession is in the larger interest of the company in liquidation and facilitates preservation and transfer of company records.

Conclusion: Application allowed; Official Liquidator directed to hand over vacant possession of the premises to the petitioner within one month upon petitioner giving written waiver of arrears and depositing Rs. 3,000 as specified.

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