2022 (4) TMI 1166 - HC - Companies Law

Dissolution granted for M/s. Bharat Bobbins Limited under Companies Act. Liquidator to preserve records and cover expenses.

The court granted the dissolution of M/s. Bharat Bobbins Limited under Section 497(6) of the Companies Act, 1956. The Voluntary Liquidator was directed to ... Dissolution of Company - Section 497(6) of the Companies Act, 1956 - HELD THAT:- All necessary compliances have been carried out - The Company in liquidation is ordered to be dissolved in terms of Section 497(6) of the Companies Act, 1956, from the date of submission of this report this Court and the Voluntary Liquidator is directed to preserve the Books of Accounts of the Company (In members’ Vol. Liqn.) for the period of 5 years from the date of dissolution of the Company in terms of resolution passed at the meeting held on 31.07.2020. The Voluntary Liquidator of M/s. Machinery & Equipment Manufacturers Private Limited to pay ₹ 7,500/- towards cost for submitting this report to the office of Official Liquidator. Report is disposed off. Issues:1. Dissolution of the company under Section 497(6) of the Companies Act, 1956.2. Preservation of Books of Accounts by the Voluntary Liquidator.3. Payment of office expenses by the Voluntary Liquidator.4. Any other appropriate orders in the interest of justice.Analysis:Issue 1: Dissolution of the company under Section 497(6) of the Companies Act, 1956The case involved M/s. Bharat Bobbins Limited, a company in liquidation, which had submitted documents for voluntary liquidation. The Official Liquidator found that the final meeting required by Section 497 of the Companies Act, 1956, had not been held by the voluntary liquidator. After the final meeting was conducted and necessary documents were submitted, the Official Liquidator prepared a report based on the information derived. The company's financial details, including assets, liabilities, surplus, and distribution of funds, were presented. The Official Liquidator requested the court to order the dissolution of the company, which was granted, and the Voluntary Liquidator was directed to preserve the Books of Accounts for five years post-dissolution.Issue 2: Preservation of Books of Accounts by the Voluntary LiquidatorThe Voluntary Liquidator was required to preserve the Books of Accounts of the company in liquidation for five years from the date of dissolution, as per the resolution passed at the meeting held on 31.07.2020. This preservation was crucial for maintaining financial records and ensuring compliance with legal requirements even after the company's dissolution.Issue 3: Payment of office expenses by the Voluntary LiquidatorThe Official Liquidator requested the Voluntary Liquidator to pay approximately &8377; 7,500/- towards the office expenses incurred for submitting the report. The court directed the Voluntary Liquidator of M/s. Machinery & Equipment Manufacturers Private Limited to make this payment, emphasizing the responsibility of the liquidator to cover such costs associated with the liquidation process.Issue 4: Any other appropriate orders in the interest of justiceThe Official Liquidator sought any other appropriate orders deemed fit by the court in the interest of justice. However, the judgment did not mention any specific additional orders, indicating that the dissolution of the company and the preservation of financial records were the primary concerns addressed in this case.In conclusion, the judgment granted the dissolution of M/s. Bharat Bobbins Limited under Section 497(6) of the Companies Act, 1956, directed the preservation of Books of Accounts by the Voluntary Liquidator, and mandated the payment of office expenses. The detailed financial accounts and compliance with legal procedures were crucial aspects considered in reaching the decision for dissolution.