2014 (12) TMI 1432

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....he Official Liquidator to hand over the possession of the assets of M/s. C.V. Steel Limited back to the applicant RIICO. The relevant facts for adjudication of the application are that M/s. CV Steel Limited entered into a term loan agreement with the RIICO. Apparently on the borrower company having defaulted on its obligation on the repayment terms of the term loan agreement, RIICO in the exercise of powers under Sections 29 and 30 of the State Financial Corporations Act, 1951 (hereinafter 'the 1951 Act') took possession of the mortgaged assets of the aforesaid company some time in the year 2000. Thereafter in a winding up petition filed against the company this court under its order dated 19-7-2002 directed the respondent company to b....

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....eps as available in law for realising its outstanding amount of Rs. 1,79,38,061/- as on 2-6- 2000, with further interest from the assets mortgaged by M/s. C.V. Steal Limited. The official liquidator has no objection to the assets of the M/s. CV Steel Limited being handed over to RIICO. It has however been submitted by his counsel that the expenses expanded by the official liquidator since taking over possession of the assets of the M/s. CV Steel Limited on 8-1-2007 till handing over assets to RIICO be provided for or safeguarded. It has been pointed out that though this court has vide its order dated 12- 12-2014 directed the directors of M/s. C.V. Steel Limited to reimburse expenses to the Official Liquidator as expanded towards security o....

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....dator is directed to hand back the assets of the M/s. CV Steel Limited to the RIICO as earlier obtained on 19-1-2007. I however do not presently find any occasion to issue any direction for recovery of expenses expanded on protection of assets of the M/s. CV Steel Limited while in possession of the official liquidator from the sale of the assets in question by RIICO in view of the fact that this court while passing the order dated 5-8-2010 recalling the winding up order dated 19-7-2002 on the application of the directors of the M/s. CV Steel Limited, had directed that the liability of the expenses expanded by the official liquidator for protection of assets of the company shall be of the directors of the company on whose behalf the winding....