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of <h1>Assets of C.V. Steel Limited to be Returned to RIICO After Winding-Up Order Reversal; Directors Held Liable for Expenses.</h1> <h3>Rajasthan State Industrial Development & Investment Corporation Ltd. Versus Official Liquidator</h3> The HC directed the Official Liquidator to return the assets of M/s. C.V. Steel Limited to RIICO, following the recall of a winding-up order. RIICO's ... Direction to the Official Liquidator to hand over the possession of the assets of the company back to the applicant RIICO - Rules 6 and 9 of the Companies (Court) Rules, 1959 - HELD THAT:- In recognition of the powers of the RIICO under Sections 29 of the 1985 Act over the assets mortgaged to it; taking into consideration that the winding up order of the M/s. CV Steel Limited passed on 19-7-2002 has been recalled by this court on 5-8-2010 and that the official liquidator has not been appointed as provisional official liquidator of the M/s. CV Steel Limited by the company court, the official liquidator is directed to hand back the assets of the M/s. CV Steel Limited to the RIICO as earlier obtained on 19-1-2007. There are presently no occasion to issue any direction for recovery of expenses expanded on protection of assets of the M/s. CV Steel Limited while in possession of the official liquidator from the sale of the assets in question by RIICO in view of the fact that this court while passing the order dated 5-8-2010 recalling the winding up order dated 19-7-2002 on the application of the directors of the M/s. CV Steel Limited, had directed that the liability of the expenses expanded by the official liquidator for protection of assets of the company shall be of the directors of the company on whose behalf the winding up order was recalled. Application disposed off. Issues:Application under Rules 6 and 9 of the Companies (Court) Rules, 1959 for direction to hand over possession of assets of a company back to the applicant RIICO.Analysis:The judgment pertains to an application by RIICO under Rules 6 and 9 of the Companies (Court) Rules, 1959 seeking direction to the Official Liquidator to return the possession of assets of M/s. C.V. Steel Limited. The background involves RIICO taking possession of mortgaged assets of the company due to default on repayment terms, followed by a winding-up order that was later recalled. The company was found not to be a sick industrial company under the Sick Industrial Companies (Special Provisions) Act, 1985. RIICO argued that since the company was not under winding up or had a provisional liquidator appointed, they should regain possession to realize outstanding amounts. The Official Liquidator had no objection but requested safeguarding of expenses incurred during possession. The company, although not a party to the application, emphasized the need for inventorying assets during handover.The court considered RIICO's rights under the 1985 Act, the recall of the winding-up order, and the absence of a provisional official liquidator appointment. Consequently, the Official Liquidator was directed to return the assets to RIICO. The court declined to order expense recovery from asset sale, citing a previous directive holding the company's directors liable for such expenses. Both the Official Liquidator and RIICO agreed to the presence of the company's representatives during handover for inventorying and notarization. The possession transfer was scheduled for a specific date, with the company instructed to ensure the presence of its officials. The application was disposed of accordingly.
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