2012 Supreme(Cal) 776
High Court of Judicature at Calcutta
ASHIM KUMAR BANERJEE & SHUKLA KABIR SINHA, JJ.
Hindusthan Pilkington Glass Works Ltd. (In Liquidation) & Well worth Vanijya Pvt. Ltd. & Another
Versus
The Official Liquidator, High Court, Calcutta & Others
A.P.O. No. 288 of 2012 & C.P. No. 435 of 1985
Decided on : 22-08-2012
For the Appearing Parties:Jayanta Kumar Mitra, Senior Advocate, Dhruba Ghosh, Rahitendra Deb, Ms. Debashree Adhikari, Ms. Mithua Sen, Paritosh Sinha, Debojyoti Datta, Advocates., Debangshu Basak, Senior State Government Advocate.
The Company Court does not have jurisdiction to adjudicate upon disputes relating to land revenue after the sale of the property by the Official Liquidator.
Headnote:
LAND REVENUE - SALE OF ASSET BY OFFICIAL LIQUIDATOR - JURISDICTION OF COMPANY COURT TO DIRECT LAND REVENUE AUTHORITY TO RECORD NAME OF PURCHASER - ACT OF COURT - LITIGANT SHOULD NOT SUFFER
Fact of the Case:
The appellant purchased an industrial property from the Official Liquidator of a company under liquidation. The sale was confirmed by the High Court and the appellant took possession of the property. The State issued a notice to the appellant asking it to show cause why the State would not cancel the permission granted to the company to retain additional land and would not re-possess the same as the surplus land was not being used by the company. The appellant replied to the notice and explained the reason for the delay. The appellant approached the High Court seeking a direction upon the State to record their names in the Record of Rights as per the Deed of Conveyance and in the alternative, to hand over the Record of Rights after giving effect to the sale.
Finding of the Court:
The High Court dismissed the appellant's application on the ground that after the sale being closed the Company Court would not have any jurisdiction to direct the Land Revenue Authority to record the name of the purchaser.
Issues: 1. Whether the Company Court has jurisdiction to direct the Land Revenue Authority to record the name of the purchaser after the sale of the property by the Official Liquidator? 2. Whether the appellant is entitled to a direction upon the State to record their names in the Record of Rights as per the Deed of Conveyance?
Ratio Decidendi: 1. The Company Court does not have jurisdiction to direct the Land Revenue Authority to record the name of the purchaser after the sale of the property by the Official Liquidator. 2. The appellant is not entitled to a direction upon the State to record their names in the Record of Rights as per the Deed of Conveyance.
Final Decision: The appeal is dismissed without any order as to costs.
Ashim Kumar Banerjee. J.
Hindusthan Pilkington Glass Works Ltd. was a company having its factory on a land comprising of 56.486 cottahs on both sides of the G.T. Road at Asansol. From the report submitted by the State through Additional District Magistrate appearing at pages 315-319 of the paper book, following facts would reveal :
i) Hindustan Pilkington was constituted in the year 1951. The said company acquired land through State Government in the Mouza-Asansol and Kalipahari. Total land would be 54.45 acres, however as per the record of the Official Liqudiator it was 56.456 acres.
ii) The factory was functional up to May 25, 1980 when the company declared lock out, since then the company was closed.
iii) On an application for winding up being C.P. 435 of 1985 this Court passed an order of winding up on February 28, 1986, coupled with a direction on the Official Liquidator to take possession of the assets and ultimately put up the assets for sale. There had been protracted litigation. Ultimately, sale was confirmed in favour of theappellant along with three other companies vide order dated February 19, 2003 appearing at pages 32-34 of the paper book. The appellant took possession of the assets on February 24, 2003.
iv) On May 20, 1980 the Assistant Settlement Officer, Asansol issued a notice, asking the company to submit the requirement of land as the company was allowed to retain 45.87 acres, in terms of Section 6(3) of West Bengal Estate Acquisition Act, 1953 (hereinafter referred to as ‘the said Act of 1953’).
v) A survey was conducted by the Revenue Officer on October 26, 2005 when the machineries were not found, though the staff occupied the quarters meant for them.
2. We thus find that as far back on May 20, 1980 the State initiated proceedings under Section 6(3) of the said Act of 1953. The follow up action was taken in 2005 through spot inspection. From the pleadings it also appears that vide order dated June 30, 2003 the purchaser got the municipal dispute settled by paying corporation dues and got their name mutated in the Municipal record. Similarly, Court passed order on the electricity authority on restoration of electricity.
3. The present issue would relate to the land revenue. On May 19, 2004, the purchaser paid the arrear land revenue without prejudice and prayed for mutation of their name in the Record of Rights. They also demanded ‘Parcha’ to be issued to them, recording their name therein. The State did nothing on the issue. On October 26, 2005 State issued a notice appearing at page-47 of the paper book, asking the company to show-cause why the State would not cancel the permission granted to them to retain additional land measuring 45.87 acres and would not re-possess the same as the surplus land was not being used by the company. The purchaser replied to the said notice by showing cause as appearing at pages 60-68 of the paper book. They explained the reason for delay. They pointed out that trial run of the jute unit was done in March-April, 2005. Subsequently, on their request made to the Managing Director, West Bengal Industrial Development Corporation, the Corporation permitted them to shift the said project from Asansol to Belur. Since then, no industrial activity was being carried on the said land in question. The machineries had already been removed. On these facts, the purchasers approached the learned Single Judge after about four years. Pertaining to note, Official Liquidator executed conveyance on May 13, 2005 and thus did not have any further responsibility whatsoever on the asset in question. The sale notice handed over by Mr. Debojyoti Datta, leaned counsel appearing for the Official Liquidator would reveal, the property was sold “as is where is and whatever there is basis”.
4. After about four years the purchaser approached the learned Single Judge by filing an application on May 19, 2009 for a direction upon the State to record their names in the Record of Rights as per the Dee