High Court admits winding up petition, appoints Official Liquidator, restrains asset dealings, schedules further proceedings.

The High Court admitted the winding up petition and issued advertisements after the company failed to pay the admitted sum, leading to the appearance of supporting creditors. The Court found uncertainties in the company's financial position and discrepancies in its asset lists, directing the company to provide further details. Due to concerns about asset transfer and creditor protection, the Court restrained the company from dealing with its assets and appointed the Official Liquidator as the Provisional Liquidator to prepare an inventory of assets. Further proceedings were scheduled for 28th September, 2018.

---

---

Issues:
1. Admittance of winding up petition
2. Consideration of company's financial position
3. Discrepancies in company's asset lists
4. Requirement of supplementary affidavit
5. Preservation of company's assets
6. Appointment of Provisional Liquidator

Admittance of Winding Up Petition:
The High Court admitted the winding up petition (C.P. No. 1 of 2016) by an order dated 1st December, 2017. Subsequently, advertisements were issued due to the failure to pay the admitted sum, leading to the appearance of four supporting creditors post-advertisement. Two supporting creditors, Reliance Commercial Finance Limited and Reliance Home Finance Limited, filed an application under Section 450 of the Companies Act, 1956. The main consideration post-advertisement was whether the company should be wound up or not.

Consideration of Company's Financial Position:
The Court, after hearing the parties and reviewing the company's affidavits, found it unclear regarding the company's present financial position and whether it should be wound up or kept in existence. An order dated 10th August, 2018, directed the company to provide details of its properties and interests in other projects. Discrepancies were noted between the company's asset lists before 21st June, 2017, and as of 22nd August, 2018, necessitating further explanations from the company.

Discrepancies in Company's Asset Lists and Requirement of Supplementary Affidavit:
The company was directed to file a supplementary affidavit explaining the dates of flat sales in mentioned projects, amounts received from sales, and details of conveyance/agreements with Cliff Trexin Pvt. Ltd. The company was also instructed to provide details of the decrease in tangible assets between 31st March, 2016, and 31st March, 2017, as per its balance-sheet. The supplementary affidavit deadline was set for 25th September, 2018.

Preservation of Company's Assets:
Considering the company's inability to liquidate debts, decrease in tangible assets, and prima facie evidence of asset transfer post-application, the Court restrained the company from dealing with or disposing of its assets until further orders. An injunction was imposed to protect the assets for the benefit of creditors.

Appointment of Provisional Liquidator:
Reliance Commercial Finance Limited and Reliance Home Finance Limited requested the appointment of a Provisional Liquidator over the company's assets. To safeguard creditor interests, the Official Liquidator was appointed as the Provisional Liquidator. The Provisional Liquidator was tasked with preparing an inventory of the company's assets and submitting the list on the next hearing date.

In conclusion, the Court's detailed analysis and orders aimed to address the complexities surrounding the company's financial position, discrepancies in asset lists, and the need to protect creditor interests through the appointment of a Provisional Liquidator. The case was scheduled for further proceedings on 28th September, 2018.

---