TaxTMI 
TaxTMI 
2008 (1) TMI 611
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....r also seeks modification of the said order to the effect that the advocate commissioners appointed by this court as liquidators be directed to function under overall control and superintendence of the official liquidator. Various other directions are also sought. The application was initially listed before the company judge on September 28, 2007. Learned company judge passed orders on September 28, 2007, directing the official liquidator to file an affidavit stating the authority under which the present application is filed. The official liquidator filed preliminary statement and compliance statement with reference to the order of this court. This court also directed the official liquidator to furnish specific information with regard to M/s. ITC Agrotech Ltd. (in liquidation) and M/s. Allwyn Watch Ltd. Having regard to the submission made by the official liquidator that he has no sufficient staff to take possession of the assets of M/s. Allwyn Watch Ltd., and that he took eight months time to take possession, this court also directed the official liquidator to file affidavit as to how he did not take possession within the specified period. The matter was listed on October 4,....
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....land after survey and valuation. While these applications are pending consideration, this court passed orders dated June 30, 2006 in C.A. No. 570 of 2006 appointing a committee of two advocate commissioners, M/s. M. Jagannadha Sarma and M. Anil Kumar, for taking up sale of assets as ordered by this court. This court also directed the advocate commissioners to invite claims from the depositors, adjudicate their claims and submit report before this court. A similar order was also passed in respect of SCL. The official liquidator was directed to transfer the records, amounts and four members of the company paid staff to the advocate commissioners. Subsequently by the order dated September 28, 2006, made in C. P. Nos. 140 and 144 of 2001, this court clarified that the advocate commissioners are appointed in the place of the official liquidator to represent three companies and that they shall discharge all functions of the official liquidator with reference to the companies. The official liquidator mainly contends that section 414 of the Indian Companies Act, 1913, which provides for appointment of private persons as liquidators has been omitted in the Companies Act, 1956, and, there....
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....or did not show any progress nor he filed proper applications and status reports before this court even after lapse of four years after the winding up orders in respect of SUL and SWL, this court appointed advocate commissioners for expeditious disposal of part of the lands and for inviting claims of the depositors with a view to settle them. Such a method is permissible under law. Appointment of advocates/chartered accountants and other persons as liquidators of the company in winding up instead of the official liquidator attached to this court the company court is well recognised. Such appointment of advocate commissioners is also approved by the Supreme Court. He has placed reliance on a decision in National Investors Forum v. Golden Forests (India) Ltd. [2004] 118 Comp. Cas. 587 (Punj. & Har.) and an unreported decision of the Supreme Court in Securities and Exchange Board of India v. Golden Forests (I) Ltd. (I. A. Nos. 28, 36, 41 to 50 of 2004, in Transfer (Civil) Case No. 2 of 2004, dated September 5, 2006). He has also placed reliance on a Full Bench judgment of this court, to which I was a member, in Remu Pipes Ltd. v. Industrial Finance Corporation of India [2001] 5 ALT 26....
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....dator attached to this court. Whatever be the situation, the liquidator cannot act independently. He is always accountable to the company court and subject to such directions as may be issued, the official liquidator is bound to obey the orders of the company court. A reference to sections 455, 457 and 458 of the Act would suffice to sustain the point. The question therefore is whether the official liquidator can file an appeal/revision/review or application to recall an order passed by the company court earlier without obtaining prior approval or permission of the company court. A perusal of section 457 of the Act which deals with the powers of the liquidator would show that the official liquidator while acting as liquidator or otherwise has no such power to file application on his own without leave of the company court. In Official Liquidator v. Golcha Properties P. Ltd. [1981] Tax LR 2561, the Rajasthan High Court considered a similar question. It was laid down therein as below: "The official liquidator under the provisions of the Companies Act, 1956, can institute or defend suits only with the sanction of the court. He has no independent functioning. As a matter of fact, ....