IN THE HIGH COURT OF JUDICATURE AT MADRAS
SENTHILKUMAR RAMAMOORTHY, J.
Smt. Madhamma – Appellant
Versus
The Official Liquidator, High Court of Madras – Respondent
Comp. A. Nos. 301, 302 of 2021, 579 to 584 of 2013, Company Petition No. 57 of 1998
Decided On : 23-01-2023
Order XIV, Rule 8 - Application to set aside/cancel sale of properties - O.S. Rules 1956 r/w Rule 9 and 11(b) of the Company Rules, 1959 - C.A. Nos. 301 and 302 of 2021 - [3.5445 acres in Survey Nos. 157/2B and 0.2594 acres in Survey No. 157/2A] - The court examined the sale deed dated 07.08.2017 executed by the Official Liquidator in favor of the third respondent and the purported death certificate of the father of the applicants. The court found that the death certificate did not comply with the requirements of the Registration of Births and Deaths Act and dismissed the applications.
Fact of the Case:
The applicants sought to set aside/cancel the sale deed dated 07.08.2017 and obtain an interim injunction restraining the third respondent from disturbing their possession of the properties. They claimed title to the lands based on a Release Deed dated 14.06.1978 and contested the validity of the General Power of Attorney (GPA) executed in favor of the third respondent.
Finding of the Court:
The court dismissed the applications, finding that the death certificate relied upon by the applicants did not comply with the requirements of the Registration of Births and Deaths Act. It also noted the delay in filing the applications and held that the sale deed was not liable to be set aside.
Issues: Validity of the sale deed dated 07.08.2017, authenticity of the death certificate, delay in filing the applications.
Ratio Decidendi: The death certificate did not comply with the requirements of the Registration of Births and Deaths Act, and the applications were filed after a significant delay, leading to their dismissal.
Final Decision: Company Application Nos. 301 and 302 of 2021 were dismissed.
ORDER :
Prayer: in C.A. Nos. 301 and 302 of 2021: This Application is filed under Order XIV, Rule 8 of O.S. Rules 1956 r/w Rule 9 and 11(b) of the Company Rules, 1959 praying to set aside/cancel the sale dated 07.08.2017 vide Document No. 3023 of 2017 at SRO, Soolagiri, Krishnagiri District, executed by the first respondent, in his capacity as the provisional liquidator of the M/s. Maxworth Orchards India Limited, the respondent in the company petition, in favour of the third respondent, in so far as the properties measuring an extent of 3.5445 acres in Survey Nos. 157/2B and 0.2594 acres in Survey No. 157/2A, totally 3.80 acres, in Seluvandoddi Village, Hosur Taluk, Krishnagiri District, being the item Nos. 25 and 26 of the schedule thereof based on the order dated 16.12.2013 passed by this Court in C.A. No. 579 to 584 of 2013 in C.P. No. 57 of 1998.
1. These applications are presented by applicants claiming title to lands ad-measuring 3.5445 acres in Survey No. 157/2B and 0.2594 acres in Survey No. 157/2A, at Seluvandoddi Village, Hosur Taluk, Krishnagiri District.
2. In Company Application No. 301 of 2021, the applicant seeks to set aside or cancel the sale deed dated 07.08.2017 bearing Document No. 3023 of 2017 pertaining to the lands measuring an extent of 3.5445 acres in Survey No. 157/2B and 0.2594 acres in Survey No. 157/2A at Seluvandoddi Village, Hosur Taluk, Krishnagiri District. In Company Application No. 302 of 2021, an interim injunction restraining the third Respondent from disturbing the applicant's peaceful possession and enjoyment of the properties is prayed for.
3. Oral submissions on behalf of the applicants were addressed by Mr. R. Selvakumar, learned counsel, and by Mrs.Nagasaila Suresh, learned Administrator and Mr. Pamarthi Sridhar, Official Liquidator.
4. Learned counsel for the applicant submitted that the applicants trace their title from their father, Mr. Varadappa Naidu, son of Munusamy Naidu, who acquired the disputed aggregate extent of 3.80 acres by way of a Release Deed (Document No. 1761 of 1978) dated 14.06.1978. He submitted that Mr. Varadappa Naidu was in possession of the property till his death on 15.08.1994.
5. Learned counsel next contended that the applicants' deceased father did not execute the General Power of Attorney (GPA) dated 17.02.1995, Document No. 85/1995 (the GPA) in favour of V. Varadappa, an employee of the company in liquidation (the Company). According to him, the GPA was executed after his father's death by impersonating him. Learned counsel also relied upon the pattas, kist receipts and village accounts in respect of the lands and asserted that the revenue records stand mutated in the names of the second and third applicants and they have been paying public dues since then. He further submitted that the applicants' father had physical possession of not only the disputed properties, but also the title documents of the properties. He stated that neither the applicants' father nor the applicants sold or alienated or encumbered the disputed property. It is, therefore, asserted that the sale of the disputed property under Document No. 3023 of 2017 executed by the Official Liquidator on 07.08.2017 to the third respondent No. 3 is illegal and void ab-initio.
6. In response thereto, the Official Liquidator (OL) filed a report dated 06.01.2022. In the said report, it was asserted that the Company acquired about 110 acres in Seluvandoddi and Karikallupalli villages (Max-Nerigam Project) under seven registered general powers of attorney in favour of V. Varadappa from the original land owners. As per records, in Survey Nos. 157/2A and 157/2B of Seluvandoddi village, the Company acquired extents of 0.2594 and 3.5445 acres, respectively, through the GPA in favour of its ex-employee, Mr. Varadappa, from the land owners (1) Betappa Naidu, (2) Mallappa Naidu and (3) Varadappa.
7. The OL further submitted in his report that the land owners who executed the release deed in favour of the applican
Compliance with statutory requirements for death certificates and the impact of delay in filing applications on the admissibility of claims.
Sale deeds executed after a company's winding up are void unless validated by the court, while powers of attorney coupled with interest remain valid despite the principal's death.
Sale deeds executed after a company's winding up are void unless validated by the court, while powers of attorney coupled with interest remain valid despite the principal's death.
Dispositions made after winding up under Section 536(2) of the Companies Act, 1956, are void unless validated by the Court, reaffirming the authority of the Official Liquidator over disputed properti....
Transactions involving the sale of company assets after winding up are void unless validated by the court, emphasizing the necessity of registered sale deeds for property transfers.
The court upheld that powers of attorney executed post-winding-up are void, emphasizing the need for registered sale deeds to establish valid ownership, reaffirming precedence in the corporate liquid....
Sale deeds executed post-winding up are void under Section 536(2) of the Companies Act, 1956, and powers of attorney executed for fraudulent purposes do not confer rights over property.
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