The Court emphasized the importance of securing the entitlement of rightful claimants and the ends of justice, allowing the Official Liquidator to consider claims without a succession certificate if the claim is Rs.500 or less.

ORDER

1. Matter comes up on the report No.11017 dated 10.02.2021 filed by the Official Liquidator and the objections to the said report, submitted by the legal representatives of the shareholder/contributory late Shri F.C.Pahwa.

2. The Official Liquidator in his report dated 10.02.2021 has narrated the fact of winding up of M/s.Shield Shoe Company Pvt. Ltd. (Company in Liquidation) vide order dated 12.05.1989 passed in S.B.Company Petition No.12/1987. It has been pointed out that this Court on 07.07.2020 directed the Official Liquidator to issue advertisement in Form No.91 of the Companies (Court) Rules, 1959 and to conduct a meeting of the shareholders. Pursuant thereto, the Official Liquidator conducted the shareholders’ meeting on 02.09.2020 and counsel appeared on behalf of the shareholders-Pahwa family.

3. The Official Liquidator has prayed that this Court may direct the Pahwa family and legal representatives of late Shri F.C.Pahwa to furnish separate power of attorney duly executed on non-stamp paper of the requisite amount, as per the Rajasthan Stamp Act and to furnish original share certificates as well as succession certificate, as the same are mandatorily required by the Official Liquidator and only after obtaining permission from the Court, the Official Liquidator would be in a position to take further action, as per the provisions of the Companies Act, 1956 and the Rules, framed thereunder.

4. The matter was taken up on 31.03.2022 and counsel appearing for the Official Liquidator pointed out that family members of the shareholder/contributory had submitted indemnity bond, power of attorney and an affidavit to the effect of loss of original share certificate, however, as per Rule 280 of the Companies (Court) Rules, 1959, if the dividend is required to be paid to the deceased contributory of more than Rs.500/-, then succession certificate is required. On that day, Mr.Anant Kasliwal, Senior Counsel appearing for the contributory submitted that he has filed reply and objections to the report and requested that this Court has inherent power, for securing ends of justice or to prevent abuse of process of Court, to dispense with filing of succession certificate. Counsel also submitted that the present case is a rare case where surplus fund is available and as such the legal representatives of the promoter, are entitled to get their money.

5. This Court, after hearing counsel for the parties, granted time to address the issue of invoking power under Rule 9 of the Companies (Court) Rules, 1959 and to consider as whether in absence of succession certificate, the Court can exercise its inherent power.

6. The Legal representatives of the original shareholder/ contributory have filed objections to the report, filed by the Official Liquidator and submitted that in the meeting dated 02.09.2020, Advocate of the legal representatives of the shareholders had submitted the death certificate of Shri F.C.Pahwa along with authorization letter, executed in favour of Arvind Pahwa, in respect of all the proceedings for liquidation.

7. The legal representatives submitted in the objections that general power of attorney, issued by Arvind Pahwa, in the capacity as legal representative and authorized representative of other legal representatives of late Shri F.C.Pahwa and Smt.Sushma Pahwa, details of bank accounts of all the legal representatives, death certificate of Anil Pahwa and affidavit regarding acceptance by powers of attorney holders, were placed before the Official Liquidator.

8. The legal representatives submitted in the objections that Rule 280 of the Companies (Court) Rules, 1959 confers power on Official Liquidator to dispense with the submission of share certificates or like authority, in case of the deceased shareholder/contributory with the sanction of the Court and the

same does not cast any obligation on the legal representatives of the shareholder/contributory to obtain a succession certificate.

9. The legal representatives further t