Official Liquidator ordered to pay outstanding security charges to agencies who protected company assets during liquidation proceedings

Gujarat HC directed Official Liquidator to disburse outstanding security charges to applicants who provided security services for company in liquidation. Court noted security agencies deployed guards to protect company assets from 2003-2009 but remained unpaid due to disputes regarding asset theft. After GITCO assessment report, court ordered payment of Rs. 53,84,647 to first applicant and Rs. 7,49,070 to Central Excise authorities for second applicant within three weeks via RTGS. Applications disposed.

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Issues:
1. Outstanding security charges payment to the applicant by the Official Liquidator.

Detailed Analysis:
The judgment involves two applications filed by the concerned applicants seeking direction for the Official Liquidator to disburse outstanding security charges. The applicants were appointed as security agencies for safeguarding the assets of a company in liquidation. The Official Liquidator failed to make payments for security expenses, leading to disputes and litigations. The Court appointed GITCO to assess losses caused to the company's assets due to theft, and the valuer's reports indicated the amount of liability of each applicant for the theft losses.

In the first application, the applicant was appointed as a security agency from 2003 to 2008. The total security charges amounted to Rs. 68,28,362, out of which only Rs. 12,43,960 was paid. The theft loss quantified by GITCO was Rs. 1,99,755. Therefore, the balance amount of Rs. 53,84,647 was directed to be paid to the applicant within three weeks via RTGS.

In the second application, the applicant served as a security agency from May 2008 to March 2009. The security charges totaled Rs. 9,28,470, with no payment made. The theft loss quantified was Rs. 1,79,400. Thus, the balance amount of Rs. 7,49,070 was directed to be paid to the Deputy Commissioner of Central Excise, Customs, and Service Tax within three weeks via RTGS.

The judgment highlighted that the Official Liquidator had funds of approximately Rs. 81 lakhs in the company's account, and it was directed to consider paying the outstanding bills of the security agencies after adjusting the loss of assets as per GITCO's valuation reports. The Court emphasized the need to settle the outstanding amounts owed to the security agencies based on the latest reports and documents presented. The judgment concluded with the directives for payment to the respective applicants and the disposal of the applications.

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