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2008 Supreme(Guj) 544

IN THE HIGH COURT OF GUJARAT
K.A. Puj, J.
Sureshchandra Lalbhai Desai - Applicant
Versus
O.L. Gujarat State Textile Corporation Ltd. (In Liquidation & 1 Anr.) - Respondents
Company Application No. 175 of 2008 in Company Petition No. 205 of 1996 seeking leave to continue H.R.P. Suit No. 1065 of 2006
Decided On : 17-04-2008

Advocates Appeared:
For the Applicant :Girish D. Bhatt, Advocate
For the Respondent:J.S. Yadav, Advocate, Bharat T. Rao, Advocate

Headnote:

Companies Act, 1956 - Section 446 (1), 456 and 457 - Applicant has taken out this Judge's Summons seeking leave of this Court under Section 446 (1) of the Companies Act, 1956 to continue the HRP Suit No.1065 of 2006 filed by him against the opponents for the reliefs prayed for in the said suit comprising of the relief for the actual and physical possession of the suit premises as well as for decree for arrears of rent and mesne profits and for permanent injunction restraining the opponents from transferring, assigning or parting with the possession, in any manner, of the suit premises- Held, premises was given to the Company in liquidation on Leave and License basis and the said Leave and License Agreement has come to an end in 1983. Thereafter, the property was retained by the respondent No.2. He was Vice President of the respondent No.2 Company and knowing fully well about the implications of the Gujarat Closed Textile Undertaking (Nationalization) Act, 1986, he managed all these affairs in such a manner that the said provisions may not be invoked by the applicant or by the State Government or by the Corporation and he can as well retain the possession without any obstruction from any one. However, the stand adopted by the respondent No.2 is contrary to law and settled legal position and hence, from 1985 onwards, the respondent No.2 is under an obligation to pay the occupation charges at the rate of Rs.800/- per month with increase of 10% at every completed year and the entire outstanding amount would be paid by the respondent No.2 to the Official Liquidator within a period of one month from today and on receipt of the said amount by the Official Liquidator from the respondent No.2, the said amount shall be handed over to the present applicant - Appeal disposed of.

JUDGMENT :

K.A. Puj, J.

The applicant has taken out this Judge's Summons seeking leave of this Court under Section 446 (1) of the Companies Act, 1956 to continue the HRP Suit No.1065 of 2006 filed by him against the opponents for the reliefs prayed for in the said suit comprising of the relief for the actual and physical possession of the suit premises as well as for decree for arrears of rent and mesne profits and for permanent injunction restraining the opponents from transferring, assigning or parting with the possession, in any manner, of the suit premises. With the leave of the Court, the applicant has also prayed for alternative relief seeking direction to the opponents to hand over vacant and peaceful possession of the premises in question, namely, ground floor premises of 8, Hindu Colony, Navrangpura, Ahmedabad - 380 009 to the applicant.

2. This Court has issued notice on 10.03.2008 making it returnable on 19.03.2008. Mr. J.S. Yadav, learned advocate appeared for the Official Liquidator and waived service of notice. The Official Liquidator was directed to file his report as to why no action has been taken during all these years for taking possession of the property of the Company in liquidation from the respondent No. 2.

3. On 25.03.2008, Mr. B.T. Rao, learned advocate appeared for respondent No. 2 and placed on record the affidavit-in-reply filed by the respondent No.2. The Court recorded the submission made on behalf of the respondent No.2 that the respondent No.2 is residing with his family in the suit premises and he would not make any change so far as the present status of the property in question is concerned. The Official Liquidator has filed his report dated 12.03.2008.

4. An affidavit in support of the Judge's summons is filed by the applicant. Mr. Girish D. Bhatt, learned advocate appearing for the applicant has submitted that the applicant has filed HRP Suit No. 1065 of 2006 against the respondents in the Court of Small Causes Court, Ahmedabad praying for the reliefs of actual and physical possession of the suit premises as well as for decree for arrears of rent and mesne profits and decree for permanent injunction restraining the respondents from transferring, assigning or parting with the possession in any manner, the suit premises in favour of any one else. He has further submitted that it is the case of the applicant in the said suit that the suit premises were given to the erstwhile New Swadeshi Mills of Ahmedabad Limited, Naroda Road, Ahmedabad on 01.05.1980 on Leave and License basis by an agreement of even date. The premises was given for use and occupation by the said Mills at the rate of Rs.800/- per month by way of compensation or license fees and that all Government and Municipal taxes as well as education cess were to be paid by the said Mills Company. Mr. Bhatt has further submitted that the applicant's wife had also executed a separate agreement of license in respect of furnitures which were allowed to be used by the Company on monthly compensation of Rs. 300/-. Since the winding up proceedings were initiated in Company Petition No. 185 of 1984 against the said Mills Company, the applicant and his wife have filed Company Application No.167 of 1985 praying for the direction to hand over peaceful and vacant possession of the ground floor of the suit premises with furniture which were given on Leave and License basis to the said Mills Company. During the pendency of the said Company Application, the said Mills Company and all its rights and assets had been taken over by the Gujarat State Textile Corporation Limited. The Company Application filed by the applicant and his wife were disposed of by this Court vide order dated 06.08.1993 on the ground that the Company Application had become infructuous as the Company and all its rights and assets had been taken over by the Gujarat State Textile Corporation Limited.

5. Company Petition No. 205 of 1996 had been registered before this Court on the basis of th

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