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Condoned 1600-Day Delay, Restored Super Bazar Petition Over Former Liquidator's Unauthorised Withdrawal
In a significant ruling that underscores the boundaries of an , the on restored a filed by after condoning a staggering 1,600-day delay. Justice Amit Mahajan held that the former Official Liquidator, Dr. A.K. Mishra, had no to instruct the withdrawal of the petition after his tenure had expired, and that allowing the dismissal to stand would jeopardize substantial .
A Liquidator Without Authority
The case traces back to , when Super Bazar's —challenging an award on Dearness Allowances—was on the instructions of Dr. Mishra, who was then the Official Liquidator. However, the current Official Liquidator later discovered a critical flaw: Dr. Mishra’s tenure had ended on , three days before the withdrawal, and had not been extended.
The court noted that Dr. Mishra's tenure was not renewed amid serious allegations of financial impropriety and embezzlement, which had prompted a investigation and subsequent sanction for his prosecution by the in . The , in an order dated , had also taken note of Dr. Mishra's conduct after his tenure expired, including issuing instructions to counsel and releasing a cheque for Rs. 35 crores.
The 1,600-Day Delay
The respondent union, Super Bazar Karamchari Dalit Sangh, opposed the , arguing that Dr. Mishra had authority to withdraw the petition and that the application seeking disposal was dated —when he was still in office. Justice Mahajan rejected this, pointing out that the application was actually filed on , after the tenure had ended, and that it only sought disposal in light of pending proceedings, not withdrawal.
“Dr. A.K. Mishra, therefore, had no authority to instruct withdrawal of the petition after he had ceased to hold the office of OL,” the court observed.
On the delay, the court acknowledged it was substantial but found to condone it. “Such substantial amount of cannot be wasted because of the conduct of one officer issuing directions without any authority and the laxity shown by some officers in filing the application seeking recall,” the judgment stated.
at Stake
Super Bazar, a public cooperative organisation under liquidation, faces liabilities of approximately Rs. 500 crores against assets of around Rs. 150 crores. The Dearness Allowance claim arising from the could directly impact the and the interests of creditors, workmen, and other stakeholders.
The court emphasised that proceedings affecting the cannot remain withdrawn merely on the instructions of a person who had ceased to hold office. “In such circumstances, a proceeding affecting the ought not to remain withdrawn merely on the basis of instructions issued by a person who had ceased to hold the office of OL,” Justice Mahajan wrote.
Decision and Road Ahead
The court allowed the applications for and , restoring the to its original number for consideration on merits. It clarified that it had only examined the competency of Dr. Mishra to withdraw the petition and not the merits of the underlying dispute. Other contentions raised by the respondent union will be addressed during the merits hearing.
The matter is now listed for further arguments on . The case serves as a cautionary tale on the limits of an and the high cost of when is involved.
