Court dismisses application for agricultural land transfer and damages in Company Petition due to lack of jurisdiction.

The Court dismissed the application seeking direction to hand over agricultural land and payment of damages in Company Petition No. 4/95. It was held that the disputed factual questions fell outside the Court's jurisdiction under section 456 of the Companies Act. The Court suggested that the applicant should seek resolution from the District Magistrate, Sikar, under sub-section (1A) of section 456 of the Companies Act. The application was therefore dismissed with these observations.

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Issues:
Seeking direction to hand over agricultural land and payment of damages in Company Petition No. 4/95.

Analysis:
The applicant, appointed as Provisional Liquidator, requested the respondent to hand over the balance agricultural land and make payment of damages. The Official Liquidator claimed that the unit of the company was possessed by the Rajasthan Financial Corporation for dues recovery, subsequently sold to the respondent. The company had two types of land, of which 20,000 Sq. Yards were converted for industrial use, and the remaining agricultural land was towards the north of the unit. The respondent contended that the land, other than the 20,000 Sq. Yards, belonged to different individuals initially and later came into their possession and cultivation. The respondent claimed ownership supported by rent receipts, stating that the auctioned land was the only property of the unit.

Upon hearing the arguments and reviewing the evidence, the Court noted that the disputed factual questions fell outside its jurisdiction under section 456 of the Companies Act. It was suggested that in such cases, the applicant should approach the District Magistrate, Sikar, under sub-section (1A) of section 456 of the Companies Act for resolution. Consequently, the application was dismissed with the aforementioned observations.

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