TaxTMI 
TaxTMI 
2000 (6) TMI 737
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.... the disposal of all issues arising in winding up matters more particularly of Textile Mills on top priority basis as the ex-workers of these Mills are suffering on account of non-payment of their dues. 2. From the record it appears that there are in all 239 Companies under liquidation and the present Liquidator is required to deal with all these 239 Companies. Out of the 239 Companies under liquidation, 50 Companies are Textile Mills. Management of huge assets are involved in the liquidation of these Companies. For example, it is indicated that assets worth Rs. 100 crores are involved insofar as Calico Mills is concerned. Assets of about Rs. 70 to 80 crores of Ambica Mills. Rs. 50 crores of Motorolla Company and Rs. 150-175 crores of 16....
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.... to be wound up in 1970. Thus even orders passed prior to 13-12-1970 still remain in cold storage in certain cases. The petitioner has given the break-up of workers and the date of winding up orders, etc., insofar as Textile Mills of Ahmedabad are concerned. 2.2 In further affidavit, the petitioner has pointed out that the office of the Official Liquidator situated at 6 Navyug Society is not at all sufficient to bear the huge workload in view of shortage of staff and space. No doubt, it is not for the petitioner to point out as to how much area would be required looking to the present situation, but he is quite justified in pointing out that the office permises, looking to the quantum of work, is quite small and even the staff provided t....
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....ed in various Courts. He has to take inspection of books of account. He is required to file criminal complaints in case of necessity against the defaulting Directors. He has to submit preliminary report under section 455, of the Companies Act, 1956. ('the Act') He is required to recover debts, loans and advances, etc., after verifying the State of affairs. He has to examine various categories of creditors i.e., secured creditors or unsecured creditors. He is required to verify, investigate and file the claims of all creditors. He has to take the assistance of Chartered Accountants for verifying the statements of claims. He has to submit in the Court reports regarding proof of debts and the loan of creditors. He has to submit a list of co....
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....y 3 Peon 2 5.2 In the affidavit dated 23-12-1999 filed by Assistant Official Liquidator in paragraph 8 it is pointed out that the Honourable Supreme Court has directed the respondent No. 1 to frame a scheme for absorbing Company paid staff against Group "C" post in the subordinate offices of the respondent No. 1. He has further pointed out in paragraph 9 of the affidavit that in order to expedite the winding up proceedings and distribution of the assets. The Government has constituted an expert committee under the Chairmanship of Shri Justice V. Balakrishna Eradi, a retired Judge of the Supreme Court, to examine the existing law relating to proceedings for winding up of companies in line with the latest developments an....
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....ting lost either by efflux of time, or by theft or by getting impaired on accounting of rust. 7. Companies (Court) Rules, 1959 are framed in exercise of powers conferred by sub-sections (1) and (2) of section 643 of the Act. When there is a winding up by the Court, a provisional liquidator is appointed. Rule 308 for employment of staff reads as under : "308. Where the Official Liquidator is of opinion that the employment of any special or additional staff is necessary in any liquidation, he shall apply to the Court for sanction, and the Court may sanction such staff as it thinks fit on such salaries and allowances as to the Court may seem appropriate". 8. Thus, till the arrangements are made by the Government for employment of addi....
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.... that the property of the company which is wound up or which is in winding up for which Official Liquidator is appointed can be managed properly and the creditors may not suffer. Such arrangement for proper administration and management would be in the interest of creditors, including labourers. If the property is not looked after for better value, that will have adverse effect on the persons interested in recovering their dues. The Official Liquidator thus is, in view of the provisions, in a position to request the Court for appointment of a Receiver for a particular company till the complete dissolution of the company. It will be for the Court to consider the facts and circumstances of the case, location of the unit, number of workmen or ....