AI Drafter 
TaxTMI 
TaxTMI 
2013 (5) TMI 1075
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.... 2004. The OL was appointed as its Liquidator. KSSPL filed Company Application No. 1334 of 2008 for payment of its bills for providing security services at the factory premises of ICL situated at 25 KM, Rohtak, Jind Road, Haryana for a period of five years, i.e., from August 2003 to August 2008. In the said application, the Court passed the following order on 27th August 2009: "Co. Appl. No. 1334 of 2008 in C.P. No. 222 of 1999 This is an application moved by M/s. Keshav Security Services Pvt. Ltd. for payment in respect of security services provided at the factory premises for the company in liquidation situated at 25 KM, Rohtak, Jind Road, Haryana. Arguments heard. Since this is a claim pertaining to a period of more than five years, i.e., from August, 2003 to August, 2008, the Official Liquidator is directed to ascertain the full particulars of the services stated to have been provided by the Applicant, after determining the number of staff deployed from time to time and their proper identification. The Official Liquidator may also verify the requisite details of the ESI provident fund etc. in this regard. At the same time, Mr. I.C. Singhal, e....
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.... missing. Since all the doors and windows in the premises were found broken, the factory premises could not be locked and sealed. The security guards of KSSPL neither produced any identity cards nor any attendance register for verification. Despite a letter addressed to KSSPL by the OL on 27th November 2009 no information regarding security staff deployed at the factory premises of ICL was furnished. The team deputed by the OL found the following items at the factory site which were verified by Mr. I.C. Singhal, a former Director: "1. Glaze Preparation Department (i) Blungers (Concrete on steel pillar) (ii) Glaze tank 2. Glabe Fixing and Storage Department (i) Kiln & Consumable Ceramic Roller (Incomplete) (ii) Roller Kiln Glaze FAB 3. Utility Services (i) Oil storage and one tank and supply system underground (CC Steels) (ii) Vertical dryer and accessories." 5. The OL's team confirmed that the following items were missing from the factory site: "A. Weighing Department (i) Weighing scale B. Ship Preparation Department (i) Drum mill including accessories (steel) ....
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....upta & Associates expressed his disinclination to undertake the further task, the OL by a letter dated 1st February 2010 called upon M/s. Chadha & Associates to undertake the valuation by visiting the factory premises of ICL. A further letter was issued on 3rd February 2010 to KSSPL, Mr. B.L. Chadha, valuer, the SHO, Police Station Julana, District Jind (Haryana), Mr. I.C. Singhal, ex-director and secured creditors, i.e., IFCI, ICICI, IDBI, Central Bank of India ('CBI'), State Bank of India ('SBI') to be present during the site visit. The aforementioned persons along with the officials of the OL visited the factory site on 6th February 2010. Inter alia the minutes of the site visit recorded that the two Liquidation Assistants (LAs) attached to the OL visited the factory site and met 16 persons including the guards, two former directors, Mr. I.C. Singhal and Mr. S.K. Goyal, Mr. Ramphal, Inspector, Police Station, Julana. The minutes further recorded as under: "After that we found that factory was open condition no seal was lying there in the main gate of the premises. We start the proceeding at about 12.00 am. Sh. B.L. Chadha has carried out the inspection of the missing it....
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..... Chadha submitted a further report on 23rd February 2010. It was now stated as under: "The photographs as furnished by Keshav Security at our office were compared with the once submitted along with our report and thoroughly scrutinized. It was conveyed to Major Sharma that the machinery shown in photographs and produced by him have already been taken care of in our valuation report except one photograph of Churners with the machine whereas our photographs shows only the machine." 11. Since the report dated 23rd February 2010 was not very clear Mr. Chadha was asked to furnish list of missing items along with the values. By a letter dated 19th March 2010 Mr. Chadha submitted a list of missing items along with their values. The list of such items read as under: "1. Drum mill including ACC (Steel) 3 Nos. 12,78,000.00 2. Slurry sieves 2 Nos. 56,800.00 3. Dryer unit 1 Nos. 13,00,000.00 4. Take off conveyour on steel Steel frames 1 Nos. 85,200.00 5. Hydraulic press & vertical dryer and ACC 2 Nos. 21,00,000.00 6. Rail tracks scrap not visible 45,440.00 7. LPG storage steel tank called....
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....ated 8th December 1994 of the learned Senior Sub Judge, Jind. Pursuant to the investigation carried out on the complaint filed by the OL, it was found that "Mr. Surant Singh Malik and the security guards of M/s. Keshav Securities Private Limited were involved in the theft." The concerned persons were arrested and released on bail. The ex-Director submitted that KSSPL was responsible for the theft of the plant and machinery. 15. At the hearing, i.e., on 5th September 2011 learned counsel for the OL informed the Court of the further theft of plant and machinery. He informed the Court that the security guards of KSSPL had been forcibly evicted by Mr. Surat Singh Malik from the Jind premises of the company and the OL had no longer in the possession of the said premises. The Court then required SP, Jind, Haryana and Mr. Surat Singh Malik to remain present in Court on the next date of hearing. On the next date, i.e., 29th September 2011 while the Court noted that Mr. Ashok Kumar, SP, Jind, Haryana, Mr. Surat Singh Malik as well as Mr. D.K. Sharma, Managing Director of KSSPL were personally present in Court, SP Jind was directed to ensure that adequate police would deploy and possessio....
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....Road, Village Pauli, District Jind, Haryana has been estimated at Rs. 9,25,00,000. The learned counsel for the secured creditors, i.e., IDBI states that this valuation is on the lower side; he seeks permission of this Court to place an independent valuation on record. Let the needful be done within a period of three weeks from today with an advance copy to the counsel for the Official Liquidator and to the ex-management as well. Learned counsel for the IDBI and IFCI has pointed out that in terms of the meeting which had been held in the office of the Official Liquidator on 22nd March 2012, the secured creditors had agreed to pay to the contractor Subhash Chander, the amount to be spent by him on fencing of the aforenoted immovable property of the company (in liquidation); further submission being that 80% of the amount has been paid to the Contractor and he will commence the fencing work within one week. Let the status report to the said effect be filed and a copy thereof shall be furnished to the counsel for the Official Liquidator." 19. As regards Company Application No. 220 of 2012, the Court noted that none was present on behalf of KSSPL and accordingly, ad....
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....contended that the machinery was scrap and was lying in five feet deep water for more than a year and the valuation was made on the replacement cost. It is reiterated on physical verification at site even at the time of takeover in 2003, signs of removal of machinery were detected. It is maintained that as far as KSSPL was concerned there has been no theft as such no report of theft was reported by the security agency. It is alleged that the payment about theft is an afterthought of ex-management to stop payments to the security agency. 23. The above submissions have been countered by Mr. Mayank Goel, learned counsel for the OL. It is pointed out that at the time of deployment of the security guards the representative of the KSSPL had inspected the entire premises along with secured creditors of the company. It is further pointed out that valuation done by M/s. S.K. Ahuja & Associates was only tiles and boxes but not of the land and machinery, land and building. A reference is made to the report of M/s. R.P. Gupta & Associates on 27th April 2009 in which the value of the assets of the company was placed at Rs. 1,22,54,640. It is submitted that KSSPL was aware of the fact of thef....