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2009 Supreme(Guj) 731

IN THE HIGH COURT OF GUJARAT
Jayant Patel, J.
Uttra Achyut Chinubhai - Applicants
Versus
O.L. of Nanikram Shobhraj Mills - Respondents
Company Application No. 370 of 2006 in Company Petition No. 65 of 1998 with Company Application No. 318 of 2006 in Company Application No. 2 of 1998 with Official Liquidator Report No. 84 of 2006 in Company Application No. 318 of 2006.
Decided On : 17-09-2009

Advocates Appeared:
For the Applicants :Maya S. Desai, Advocate
For the Respondent:Official Liquidator and J.S. Yadav, Advocate, Anshin H. Desai, Advocate, Bharat T. Rao, Advocate

Headnote:

Constitution of India, Art. 226 - Company Application is preferred by Ed-India Public Trust to direct the Official Liquidator and the sale committee to take immediate action for holding auction of the immovable assets of the company in liquidation applicant is one of the offerers for the property in question who is desirous to purchase the property from the company in liquidation and has submitted the offer. Therefore, it is desirous to see that the properties of the company are sold by the sale committee or the Official Liquidator, as the case may be, at the earliest - Held, Not only the building is in dilapidated condition, but huge expenses were, at one point of time, incurred for maintenance and preservation of the property and the security expenses are mounting. It is true that as observed earlier, the OL is entitled to retain the possession of the property in capacity as the statutory tenant - However, after the price of the super-structure in view of the aforesaid declaration made on behalf of the applicant is realised, there will not be any useful purpose for retention of the property in the process of winding up, more particularly in view of the aforesaid findings that the OL is not in a position to sell the property as the company in liquidation is not having any saleable interest in the property. If there is no saleable interest in the property and huge expenses are being incurred for preservation and maintenance of the property for indefinite period, the same is going to adversely affect the corpus of the company and ultimately the availability of the fund for distribution amongst various classes of the creditors - No direction deserves to be issued to the OL to sell the land. Hence, no orders further - Application is disposed of

JUDGMENT :

Jayant Patel, J.

As all matters are interconnected, they are being considered by this common order.

2. Company Application No. 318 of 2006 is preferred by Ed-India Public Trust to direct the Official Liquidator and the sale committee to take immediate action for holding auction of the immovable assets of the company in liquidation situated near Meter Guage Railway Station at Saraspur, Ahmedabad, known as Saraspur unit. In the affidavit in support of the Judge's Summons, it has been stated by the applicant that the applicant has preferred Company Application No. 286 of 2005 before this Court for the appropriate relief to accept the offer of the applicant for Rs. 500/- per Sq. Mtr. of the land including the movables and immovable. To say in other words, the applicant is one of the offerers for the property in question who is desirous to purchase the property from the company in liquidation and has submitted the offer. Therefore, it is desirous to see that the properties of the company are sold by the sale committee or the Official Liquidator, as the case may be, at the earliest.

3. Company Application No. 370 of 2006 has been preferred by three persons viz. Mrs. Uttra Achyut Chinubhai, Aneesh Achyut Chinubhai and Mrs. Meera Kirtidev Chinubhai through their constituted power of attorney Achyut Chinubhai in capacity as the successor owner of the property seeking direction of this Court to Official Liquidator to handover the clear and vacant possession of the mill premises, which as per the applicant, is not required for efficiently carrying on winding up proceedings and it is also prayed that the Official Liquidator be directed to take appropriate steps to see that no unauthorized occupant may enter the premises and there may not be any pilferage over the property or to pay the arrears of rent, municipal tax, education cess, etc.

4. It appears that pending both the applications, Official Liquidator was directed to submit the report, for showing the status of the property and other aspects incidental thereto, Official Liquidator has filed the report which is registered as OLR No. 84 of 2006. The said report inter alia, for the subject matter of the present applications, states as under:

"It is to be mentioned that Mrs. Uttra Achyut Chinubhai, Aneesh Achyut Chinubhai have moved Company Application No. 370 of 2006 seeking possession of the land and building on the ground of their so-called ownership of the property. That the application has been moved after rejection of their Company Application No. 249 of 2006 vide order dated 05.05.2006 of this Hon'ble Court. That it is seen from the statement of affairs filed by Ex-director of Company that the land and building of Saraspur unit of the company is not of the ownership of N.S Mills. That, in view of these circumstances and developments, no further action for sale of the land and building of Saraspur unit of the company can be taken unless the claim of Mrs. Uttra Achyut Chinubhai, Aneesh Achyut Chinubhai regarding ownership of the land and building of Saraspur unit of the company is adjudicated by this Court in Company Application No. 370 of 2006."

5. The other aspect is pertaining to the security agency which may not be much relevant in order to decide the question as to whether the Official Liquidator should be directed to handover the possession of the property to the applicant of Company Application No. 370 of 2006 who are claiming the ownership, or not. Therefore no much discussion would be required on said aspect.

6. Since the preliminary contention has been raised on behalf of the Official Liquidator regarding filing of the earlier Company Application No. 249 of 2006 which has been disposed of vide order dated 05.05.2006, the same would be required to be considered. The copy of the order is produced by the applicant of Company Application No. 370 of 2006. It appears from the perusal of the order that the reliefs prayed in the said application were virtually the same as praye

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