2015 Supreme(Guj) 479
IN THE HIGH COURT OF GUJARAT
Harsha Devani, J.
Official Liquidator of Commercial Ahmedabad Mills Ltd. - Appellant
Vs.
Manager, State Bank of India and Ors. - Respondents
Company Application No. 575 of 2006 in Official Liquidator Report No. 12 of 2006 in Company Petition No. 117 of 1989
Decided On: 03.03.2015
Advocate Appeared:
For the Appellant: R.M. Desai
For the Respondents: Pranav G. Desai
Headnote:
Companies Act, 1956 - Sections 446 and 529A - Urban Land (Ceiling And Regulation) Act, 1976 - Sections 8, 9 and 10 - Official Liquidator praying for a declaration that the alleged possession of the land of the Company in liquidation taken by the Government of Gujarat without obtaining leave and permission of the Company Court under section 446 of the Companies Act, 1956 is illegal and void. The Official Liquidator further seeks a declaration that the alleged continuation of proceedings under the Urban Land (Ceiling and Regulation) Act, 1976 without obtaining leave and permission of the Company Court under section 446 of the Companies Act, 1956 is illegal and void and that the alleged declaration of land as surplus is illegal and void-Held, In view of section 4 of the Repeal Act, all such pending proceedings shall abate. Reverting to the facts of the present case, all proceedings taken by the ULC authorities subsequent to issuance of final statement under section 9 of the ULC Act are void as having been undertaken without obtaining the permission of this court - Action of respondent authorities of taking over possession of land is hereby held to be illegal and invalid - All steps taken by authorities under ULC Act post issuance of final statement under section 9 of ULC Act, are held to be null and void and of no consequence - Application Allowed.
Harsha Devani, J.
1. The official liquidator has taken out this judges' summons praying for a declaration that the alleged possession of the land of the company in liquidation situated at Survey No. 39 and 41, T.P. Scheme No. 14, F.P. No. 24 of Dariyapur, Kazipur, Ahmedabad, admeasuring approximately 27.71 square metres taken by the Government of Gujarat without obtaining leave and permission of the company court under section 446 of the Companies Act, 1956 (hereinafter referred to as "the Act") is illegal and void. The official liquidator further seeks a declaration that the alleged continuation of proceedings under the Urban Land (Ceiling and Regulation) Act, 1976 (hereinafter referred to as "the ULC Act") without obtaining leave and permission of the company court under section 446 of the Companies Act, 1956, is illegal and void and that the alleged declaration of land as surplus is illegal and void. A further declaration has been sought that by the alleged disturbing of custody of this court, the Government of Gujarat has committed contempt of court and may not be heard till it purges the contempt. In the affidavit-in-support of the judges' summons, it has been stated that by an order dated October 11, 1989, passed by this court in Company Petition No. 117 of 1989, M/s. The Commercial Ahmedabad Mills Ltd. (hereinafter referred to as "the company") has been ordered to be wound up by this court and the official liquidator attached to this court has been appointed as its liquidator with all usual powers under the provisions of the Act and accordingly, the official liquidator has taken possession of the available assets of the company situated at Ahmedabad. It has been stated that after the winding up, the official liquidator took charge of the assets and properties of the company on December 4, 1989 and also took physical possession of movable and immovable assets and properties of the company. In terms of the order dated April 2, 1997, passed by this court in Company Application No. 208 of 1997, a sale committee was constituted under the chairmanship of the official liquidator with representatives of the secured creditors as members of the said committee for disposal of the assets and properties of the company (in liquidation). On December 1, 1998, valuation of the movable and immovable assets and properties of the company came to be carried out. Valuation of the land of the company was once again carried out on September 5, 2005. In terms of the order dated February 3, 1999, passed in Official Liquidator Report No. 7 of 1999, the movable assets of the company, viz., plant, machinery and other movables excluding the building structure, records and the land of the company was confirmed in favour of the successful bidder. By an order dated February 5, 2003, made in Official Liquidator Report No. 47 of 2002, the sale of building super structure except land, time-keeper office, record and compound wall was confirmed in favour of the successful bidder. Various sale committee meetings took place for deciding the issue of sale of land, and on June 15, 2005, it was decided to have a fresh valuation of the land. Thereafter, on January 16, 2006, the official liquidator issued an advertisement in the newspaper for and on behalf of the sale committee inviting offers for purchase of the land of the company. The official liquidator held auction of the land on January 30, 2006 and pursuant thereto he filed a report before this court for confirmation or otherwise of sale of the land of the company in favour of the successful bidder. At this stage, the bidder pointed out that proceedings under the ULC Act have been carried out in respect of the land of the company. In view thereof, the official liquidator joined the State Government as a party in the proceedings. In response thereto, the Deputy Collector, Urban Land Ceiling, Ahmedabad filed an affidavit dated June 28, 2006, placing on record a copy of the order dated April 6, 1991, pa