2002 (8) TMI 782

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the Court, a classic instance of the grossest abuse of public interest litigation jurisdiction of the Court, prays for the following reliefs :- "(a)The Hon'ble Court may direct respondent No. 3 to file statement of accounts in prescribed Form No. 48 with regards to all companies in liquidation with register of companies by 31-12-2001. (b)The Hon'ble Court may direct respondent No.3 to invite investigate and settle list of creditors and file the same in this Hon'ble Court and file the list of debts and claims along with the proofs of debts by 31-12-2001. (c)The Hon'ble Court may directs the respondent No. 3 to file original copies of statement of affairs as required under rule 127 in the original side of the Hon'ble Court by 31-12-200....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....irection that the respondent No. 3 should investigate and settle the list of creditors and file the same before this Hon'ble Court as well as the list of the debts and claims along with the proof of the debts. Insofar as the said prayer is concerned, I submit that the petitioner appears to be harbouring a mistaken impression that the said procedure is not being followed with by the Respondents. It is most respectfully submitted that as a matter of fact, the respondent is complying with the requirements of provisions of the Companies Act, 1956 and Companies (Court) Rules, 1959. On realization of the assets and properties, the claims are submitted by the secured creditors and workers union to the Official Liquidator and the same are got inves....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the affidavit, which is as below : "7. So far as the prayer (c) is concerned, I submit that the petitioner has sought a direction that the respondent No. 3 should file the copies of the statement of affairs in accordance with Rule 127 of the Companies (Court) Rules, 1959, I submit that the said Statements of Affairs which have been filed by the concerned Ex-Directors of the Companies (in Liquidation) with the office of the Respondent No. 3, are being filed before the Hon'ble High Court. I also state that in case where the statement of affairs has not been filed by the Directors/Ex-Directors, Criminal complaint have been filed by the office of the Respondent No. 3 against the said Ex-Directors. I submit that in all 48 complaints have been ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....3 to invite, investigate and settle list of creditors. The relevant statutory provisions, in this regard, are to be found in section 474 of the Act, and Rule 174 of the Rules. A conjoint and meaningful reading of the provisions of section 474 of the Act and Rule 174 of the Rules makes it absolutely clear that the function of investigation and settlement of the list of the creditors is assigned to the Court, and the Official Liquidator, respondent No. 3, does not come in picture. He has only to act in accordance with the directions given by the Court. Thus, relief (b) is utterly misconceived. 7. By relief (c ), the petitioner urges the Court to direct the respondent No. 3 to file original statement of affairs, as required under Rule 127 of ....