TaxTMI 
TaxTMI 
2005 (8) TMI 407
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....ninety days from the date of order of the Hon'ble High Court, permit the official liquidator to adjust the sale proceeds of the property against the decretal amount and further interest; and (c)to order for payment of costs. 2. In the report of the official liquidator filed in support of the application, it is stated that on a perusal of the records of the company in liquidation and statement of affairs filed on 4-10-1999, by the president of the company in liquidation, it came to light that the respondents are debtors of the company under the registered mortgage and equitable mortgage in respect of two loan accounts, viz., (i) account No. HO-264, dated 12-12-1994, under which, a sum of Rs. 50,000 was borrowed and (ii) account No. HO-265, dated 17-12-1994, under which a sum of Rs. 2,50,000 was borrowed. It is further stated that in respect of the abovesaid two loans, a mortgage deed has been registered in favour of the company in liquidation for a sum of Rs. 50,000 and a promissory note has been executed by depositing title deeds of the schedule mentioned property in respect of the sum of Rs. 2,50,000. 3. As per the statement of affairs and debtors list dated 7-9-1999, fil....
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....e documents themselves disclose that the payments were made by cash. Those payments related to the property in S. No. 145/2. In respect of the property in S. No. 145/1, a sale consideration of Rs. 3,52,000 was paid by cash as disclosed in the document. Accordingly, an order came to be passed on 30-10-2003, wherein, this Court brought down the liability from Rs. 20,72,989 (which was calculated as payable up to 31-8-2003) to Rs. 5,02,620. In the said order, the respondents were directed to pay the said amount by 11-11-2003, by cash and failing which, it was stated that coercive action would be taken to recover the money. Thereafter, since the respondents failed to pay the said liability as directed above, non-bailable warrants were issued against the respondents which were also executed. 8. Ultimately, this Court passed an order dated 25-5-2005, which reads as under : "The claim of the administrator is yet to be adjudicated on merits. It is no doubt true that this application was earlier before a number of judges of this Court. I find from those orders that the parties to that application were only negotiating on the claim and in that context, the respective learned judges were....
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....s issued by the company in liquidation dated 11-9-1997, 15-9-1997 and 28-9-1997, respectively in proof of the payment of Rs. 10,000 each and exhibit A11 list of debtors, submitted that as against the above voluminous documents filed, there was no satisfactory explanation forthcoming from the respondents. It is also submitted that exhibits R1 and R2 certified copies of the sale deeds dated 11-9-1995 and 16-9-1995, did not in anyway answer the liabilities of the first respondent as debtor of the company in liquidation. It was also pointed out that in the said exhibits, the sale consideration was shown as Rs. 2,60,000 and Rs. 3,52,000 respectively and that in exhibit R1 itself, it is specifically mentioned that a sum of Rs. 1,50,000 was received on 21-8-1995, and another sum of Rs. 1,10,000 on the date of the execution of the sale deeds and thereby the entire sale consideration of Rs. 2,60,000 had been paid in full. Similarly, in exhibit R2, it is recited that a sum of Rs. 3,52,000 was received on various dates, namely, a sum of Rs. 5,000 on 21-8-1995, a sum of Rs. 1,73,500 and Rs. 28,500 on the date of execution of the sale deed. Exhibit R3 is stated to be an unregistered will of the....
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....stipulated that where a winding up order has been made or a provisional liquidator has been appointed, the liquidator or the provisional liquidator as the case may be should take into custody or under his control of the properties, effects and actionable claims to which the company is or appears to be entitled. Under section 457(1)(e), it is prescribed that the liquidator of a winding up company shall have a power to do all such other things as may be necessary for winding up the affairs of the company and distributing its assets. 13. Thus, a conjoint reading of the above referred to provisions, makes it amply clear that the object of a winding up proceedings is to ensure the derivation and accumulation of all the wealth of the company in liquidation by ensuring the collection of all the amounts outstanding from the parties, in order to have proportionate distribution of such collection amongst the creditors according to their rankings. If such object of a winding up proceeding is to be achieved, it is imperative that any attempt from any quarter from putting spokes into the smooth running of the wheel is stoutly removed. 14. With the above objective of a winding up proceedin....