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2022 Supreme(Guj) 827

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
VAIBHAVI D.NANAVATI, J.
Bheruji Estate – Appellant
Versus
Official Liquidator Of Shree Ambica Mills Ltd. (In liquidation) & 4 Others – Respondents
Company Application No. 68 of 2017
Decided on : 13-09-2022

Advocates appeared:
Monaal J.Davawala, Abhijit P.Joshi, Gaurav K.Mehta, P.P.Majmudar, Advocates

Headnote:

Constitution of India, 1950 - Article 137 - Companies Act, 1956 - Section 446, 446(1) - Limitation Act, 1963 -Review of judgments or orders by the Supreme Court - Suits stayed on winding up order - Principles governing staying of suit in pursuance of winding up proceedings -Whether it will let suit/proceeding to continue in court where it is pending, or it will itself adjudicate suit/proceeding - Thus, under Section 446(1), winding up court only decides about forum where suit has to be tried and disposed of –Held, This Court it was incumbent for respondents to take permission/to take leave of this Court under section 446 of Companies Act, 1956 before proceeding with restoration respondents have accepted fact that no permission has been sought for from this Court, orders passed in aforesaid proceedings can be enforced by respective respondents -Court passing winding up order may at any time, on application either of liquidator or of any creditor or contributory, make an order staying winding up either altogether or for a limited time on such terms and conditions as court deems fit, under section 466 of Act - Application allowed.

JUDGMENT :

1. Heard learned advocate Mr. Davawala for the applicant, learned advocate Mr. Joshi for respondent no.1-official Liquidator and learned advocate Mr. Gaurav Mehta for respondent no.2.

2. The facts of the present case, stated briefly for adjudication of the dispute in the present application are stated thus:

2.1 Shree Ambica Mills Ltd (hereinafter referred to as "the said company"), was ordered to be wound-up by order dated 17.01.1997, passed in Company Petition No. 66 of 1988 and the Official Liquidator attached to this Court was appointed as the liquidator of the company with directions to take charge of the assets and properties of the company including the property situated at Akota Road, Vadodara and deployed its security guards for safe guarding the assets and properties of the company. After following due procedures for sale of assets of the company, the Official Liquidator had put all the assets of the company including the property situated at Akota Road, Vadodara for sale.

2.2 In response to the advertisement published by the Official Liquidator, no offers were received from the intending purchasers for the purchase of land of the company situated at Akota Road, Vadodara. The applicant submitted offer before the Official Liquidator for purchase of the assets of the company for an amount of Rs.5.15 crores, which was in turn placed before this Court for due consideration.

2.3 This Court thereafter directed the Official Liquidator to publish fresh advertisement keeping the upset price at Rs.5.15 crores. Thereafter, fresh advertisement came to be published by the Official Liquidator, in accordance with the order passed by this Court. However, no offers were received then. Accordingly, this Court by order dated 23.12.2003 in Company Application No. 414 of 2003 passed an order confirming the sale of land of the company in favour of the applicant for a total consideration of Rs. 8.60 crores, on the condition that the dues of the GEB and the Municipal Corporation will be borne by the purchaser.

2.4 One Mr. Manubhai Maganbhai Patel, the nominee of the company had preferred Company Application No. 449 of 2004 seeking direction against the Official Liquidator to hand over possession of the freehold land and execute the sale deed in his favour and similarly the leasehold land of the company be executed in favour of the applicant. Accordingly, the Official Liquidator executed the sale deed of freehold land in favour of Mr. Manubhai Maganbhai Patel and leasehold land in favour of the applicant.

2.5 The applicant then preferred Company Application No. 260 of 2008 seeking direction that the Official Liquidator to remove encroachment from the leasehold land of the company. The said application came be rejected on 06.08.2009 by this Court on the ground that Company Application No. 429 of 2008 and similar matters were pending before this Court for consideration.

2.6 Further, the respondents Nos. 2 to 4 herein were directed to file application to implead Official Liquidator as a party to the cases pending before the lower Court. The relevant part of the order dated 06.08.2009 in COMA No. 260 of 2008 reads thus :

    "6. So far as the OL is concerned, he may be required to take action for removal of encroachment, but if there is any prohibitory order of any competent Court, unless it is vacated, OL is bound by it. Further, it also appears that in the concerned suit, OL is not joined as party. Therefore, respondents no.3 to 4, if desirous to protect their possession, may move appropriate application for leave to proved with the suit and may also join OL as party in the suit. It is only thereafter the order of the Civil Court can be enforced by respondents 2 to 4."

It appears that notice came to be issued to the Official Liquidator, from the Small Cause Court at Vadodara in Rent Suit No. 372 of 1998 filed by the respondent no.2 herein. In the aforesaid connection, it is stated that the Official Liquidator had filed reply in the said proceedin

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