TaxTMI 
TaxTMI 
2008 (1) TMI 613
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....overall control and superintendence of Official Liquidator. Various other directions are also sought. 2. The application was initially listed before the Company Judge on 28-9-2007. Learned Company Judge passed orders on 28-9-2007 directing Official Liquidator to file an affidavit stating authority under which present application is filed. The Official Liquidator filed preliminary statement and compliance statement with reference to order of this Court. This Court also directed 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 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 Official Liquidator to file affidavit as to how he did not take possession within specified period. 3. The matter was listed on 4-10-2007. The affidavit as directed was not filed by Official Liquidator. This Court therefore passed orders on 4-10-2007 directing Official Liquidator to be present in the Court and explain the circumstances under which t....
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....ommissioners 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. Official Liquidator was directed to transfer the records, amounts and four members of company paid staff to Advocate Commissioners. Subsequently by order dated 28-9-2006 made in C.P. Nos. 140 and 144 of 2001, this Court clarified that the Advocate Commissioners are appointed in the place of Official Liquidator to represent three companies and that they shall discharge all functions of Official Liquidator with reference to the companies. 5. The Official Liquidator mainly contends that section 414 of Companies Act, 1913, which provides for appointment of private persons as liquidators has been omitted in Companies Act, 1956, and therefore a private person and an Advocate cannot be appointed as liquidator. Strong reliance was placed on sections 448, 449 to 453 of Companies Act, 1956, in support of contention that in all cases Official Liquidator attached to this Court shall alone act as liquidator as well as provisional liquidator and any committee of Advocates or private persons can only assist the liquidator (in dischargi....
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....nstead of Official Liquidator attached to this Court the company Court is well recognised. Such appointment of Advocate Commissioners is also approved by Supreme Court. He has placed reliance on unreported decisions in National Investors Forum v. Golden Forests (India) Ltd. [2004] 51 SCL 669 (Punj. & Har.) and a decision of Supreme Court in Securities & Exchange Board of India v. Golden Forests (India) Ltd. IA Nos. 28, 36, 41 to 50 of 2004 in Transfer (Civil) Case No. 2 of 2004, dated 5-9-2006. He has also placed reliance on Full Bench judgment of this Court, to which I was a Member, in Remu Pipes Ltd. v. Industrial Finance Corpn. of India [2002] 108 Comp. Cas. 3851 (AP)(FB). 7. Learned counsel nextly submits that after taking over the assets of three companies in June 2006, Advocate Commissioners realised a sum of Rs. 25.49 crores by selling Acs. 523.25 guntas of land of SUL, Rs. 2.20 crores by selling 8027.74 Sq.yards of land of SWL, and Rs. 15.63 crores by selling various plots belonging to SCL to large number of plot allottees and that 1200 individual notices were issued to depositors inviting claims. He also submits that substantial work in winding up has been attended to by ....
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....h powers of liquidator would show that Official Liquidator while acting as liquidator or otherwise has no such power to file application on his own without leave of Company Court. In Official Liquidator v. Golcha Properties (P.) Ltd. 1981 Tax LR 2561, 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, the Official Liquidator being an officer of the Court is an adjunct to the Court and cannot file any appeal against the order of the Court. The Official Liquidator was not in any way prejudiced by the orders of the Court dated 19-10-1979, it were the creditors. The creditors were paid before the order dated 19-10-1979 was passed. The creditors could file a special appeal if it was permissible under the law if they thought proper. It is strange that the Official Liquidator who is an adjunct of the Court should take up the matter on behalf of the creditors and file an appeal. The creditors did not themselves intend to file any appeal against the orders of th....