2008 (12) TMI 403

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....me of the Company but also the properties standing in the names of other Companies on the premise that such assets have been created with the funds collected by the Company. (II) Material on which plea for winding up was made 2. On complaints of large scale commission of frauds by the Directors of the Company involving siphoning off the Company funds for private ends and for purchasing all properties in the names of other front companies, thus stashing away large assets from the reach of the creditors, an application had been moved for winding up of the company. It had been brought on record at the time of application was moved that the Income-tax Authorities had raided the Company and seized its current assets in the year 1995 and on the....

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....concerns had nothing to do with the affairs of the company under liquidation. (III) Subsequent important events 3. It is Pointed out by the respondents even at the outset that after passing of the order, the Official Liquidator has been assiduously gathering all the details relating to the Company, identified the properties belonging to the Companies and at the time of the hearing of the appeal, the proceedings have already become ripe for bringing up several properties for sale. It was also the contention that property that had been identified as belonging to the Company were really handed-over to the liquidator on the affidavit given on behalf of the Company by the erstwhile Directors and therefore the appellant is not entitled to resil....

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....erty or books or papers of the Company or known or suspected to be inducted to the Company. This power which the Company Court has under section 477 is wide enough to pass even an ex parte order to secure the interest of the persons moving the application for winding up. In this behalf reference may be made to the decision rendered by the Apex Court in Satish Churn Law v. H.K. Ganguly [1962] 32 Comp. Cas. 97. Having regard to such wide power of the Companies Court, it is untenable to contend that the Company Court could not have directed the properties which on a prima facie finding, were also the assets of the Company. The order of the Company Court is unexceptional if we notice that the Company Court had also given liberty to show that th....