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        Companies Law

        2005 (6) TMI 288 - HC - Companies Law

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        Contempt for Breaking Official Liquidator Seal: Guilty Parties Sentenced to Imprisonment and Fines The Court found Rajeev Dixit guilty of contempt for breaking the seal of the Official Liquidator and disposing of machinery, sentencing him to two months' ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Contempt for Breaking Official Liquidator Seal: Guilty Parties Sentenced to Imprisonment and Fines

                                The Court found Rajeev Dixit guilty of contempt for breaking the seal of the Official Liquidator and disposing of machinery, sentencing him to two months' simple imprisonment and a Rs. 2,000 fine. His son was fined Rs. 5,000. Reliable Disposable Glass Containers (P.) Ltd. was fined Rs. 2,000 and ordered to pay Rs. 3,000 for interfering with the Liquidator's possession. Dilip Kumar Das's show-cause notice was deferred. The purchaser was granted a stay on the order upon depositing the fine within one week.




                                Issues Involved:
                                1. Breaking open the lock and seal of the Official Liquidator.
                                2. Claim of ownership and possession of machinery under hire purchase agreements.
                                3. Sale of premises and machinery by the company and the State Bank of India.
                                4. Contempt of court for interfering with the possession of the Liquidator.

                                Issue-wise Detailed Analysis:

                                1. Breaking open the lock and seal of the Official Liquidator:
                                The Official Liquidator sealed the premises of a company under liquidation on 10-6-1998 to safeguard the machinery. However, it was found that the premises were later sold to Reliable Disposable Glass Containers (P.) Ltd. after breaking the seal. The Court directed the issuance of a show-cause notice to the directors and the purchaser for breaking the lock and seal of the Liquidator.

                                2. Claim of ownership and possession of machinery under hire purchase agreements:
                                Applicants claimed ownership of certain machineries under two hire purchase agreements dated 5-11-1993 with Rohan Stampings India (P.) Ltd. Due to defaults in repayment, the applicants sought possession of these machineries. The Court directed the Liquidator to release the machinery to the applicants, but the machinery was found missing from the premises.

                                3. Sale of premises and machinery by the company and the State Bank of India:
                                The premises and machinery were sold to Reliable Disposable Glass Containers (P.) Ltd. by the directors of Rohan Stampings India (P.) Ltd., allegedly with the intervention of the State Bank of India. The purchaser claimed to be unaware of the Liquidator's appointment and the seals on the premises. However, it was found that the purchaser was aware of the proceedings in the Debt Recovery Tribunal involving the Liquidator.

                                4. Contempt of court for interfering with the possession of the Liquidator:
                                The Court found Rajeev Dixit, a director of Rohan Stampings India (P.) Ltd., guilty of contempt for breaking the seal and disposing of the machinery. The purchaser, Reliable Disposable Glass Containers (P.) Ltd., was also found guilty of contempt for interfering with the Liquidator's possession. The Court imposed simple imprisonment and fines on Rajeev Dixit and fines on the purchaser.

                                Judgment Summary:
                                The Court held Rajeev Dixit guilty of contempt of court for breaking the lock and seal of the Official Liquidator and disposing of the machinery. He was sentenced to two months of simple imprisonment and fined Rs. 2,000. His son, Rohan Dixit, was also fined Rs. 5,000 for avoiding service of the show-cause notice. The purchaser, Reliable Disposable Glass Containers (P.) Ltd., was fined Rs. 2,000 and ordered to pay Rs. 3,000 in costs for interfering with the Liquidator's possession. The show-cause notice against Dilip Kumar Das was deferred until the execution of a non-bailable warrant. The Court granted a stay on the order for the purchaser upon depositing the fine within one week.
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                                ActsIncome Tax
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