2002 (11) TMI 350

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....Ltd. He has sought direction that the secured creditors, i.e., Bank of Baroda and IDBI should deposit the security charges with him. Ms. Buch, learned counsel appearing for the RMMS, the representative union in the textile industry, has handed over the minutes of a meeting held on October 29, 2002, of the High Power Committee. It appears that the committee has decided that 45 security guards would be sufficient to protect the property. The Committee has assessed that 98 security guards were not required. Leaned counsel for the Bank of Baroda submits that his clients will not bear any security expenses. It is reflected that in the meeting held before the official liquidator at the time of taking possession of the property the representati....

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....property was not even Rs. 30 lakhs while the security bill was Rs. 35 lakhs. There was another very serious complaint that on surprise checking it was found that the security guards were not present on the spot to guard the property and that thefts have taken place. It is a case of "who would watch the watchmen ?" From the reports placed today before me by the learned official liquidator it appears that he is seeking ratification from this court of his appointing private security guards agencies to protect the properties of the companies under liquidation. According to me, he ought to have first taken permission/orders from this court before taking the decision to appoint the security guards. At that time the say of the secured creditors....