Official Liquidator possession and sale committee approved for orderly disposal of company assets in liquidation proceedings.

In liquidation proceedings, the Court ratified the Official Liquidator's taking over of the company's movable assets and approved constitution of a sale committee for disposal of the company's assets and properties. The decision was supported by the winding-up record, search report, inventory and valuation material, and the statement of affairs filed by the ex-directors, which showed that the assets required sale through a proper process. As there was only one secured creditor, the committee was directed to include the Official Liquidator as Chairman, the secured creditor's official representative, and the Assistant Official Liquidator.

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Issues: Whether the Official Liquidator's action in taking over possession of the movable assets of the company in liquidation, and the constitution of a sale committee for disposal of the company's assets and properties, should be approved.

Analysis: The application was supported by the record of winding up, the search report, the inventory and valuation material, and the statement of affairs filed by the ex-directors. The Court found that the assets required disposal through a proper sale process and that, in the facts of the case, a sale committee was warranted. Considering that there was only one secured creditor, the committee was directed to comprise the Official Liquidator as Chairman, the official representative of the secured creditor, and the Assistant Official Liquidator.

Conclusion: The Official Liquidator's action was ratified and the sale committee was constituted as prayed for.

Ratio Decidendi: In liquidation proceedings, where the record supports the Official Liquidator's possession and sale steps, the Court may ratify the action taken and constitute a sale committee to effect disposal of the company's assets.

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