Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Guj) 1275

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
NIRAL R. MEHTA, J.
Official Liquidator Of Various Companies (In Liquidation) - Appellant
Versus
NA - Respondent
Official Liqudator Report No. 12 of 2026 In Official Liqudator Report No. 63 of 2025 In Official Liqudator Report No. 22 of 2024 In Official Liqudator Report No. 2 of 2024
Decided On : 02-04-2026

Advocates:
Advocate Appeared:
For the Appellant : Shivang A Thacker(7424)

The court exercises administrative oversight in the liquidation process by approving the appointment, remuneration, and contract extensions of professional staff provided they follow independent, merit-based selection and conform to established governmental financial directives.

Headnote:(A) Liquidation proceedings - Professional personnel appointment - Oversight authority - Remuneration standards. The authority tasked with liquidation is vested with the power to appoint professional staff, provided such engagement follows transparent selection criteria and administrative remuneration guidelines. (Para 1)

(B) Appellate oversight - Professional selection committee - Role and mandate. The establishment of a selection committee involving independent subject matter experts ensures transparency and meritocratic outcomes in filling professional roles. (Para 3)

(C) Contractual extension - Criteria for service continuity. Extensions of existing professional engagements are permissible when performance is assessed as satisfactory and service duration warrants continued employment. (Para 10)

Facts of the case:
The liquidation authority sought judicial intervention to finalize the appointment of legal professionals and trainees, fix standard monthly remuneration, provide for committee honorariums, and extend the term of an existing professional based on performance evaluation.

Findings of Court:
The selection process conducted by the committee was deemed robust. The proposed remuneration packages were consistent with directives issued by the responsible government administration. The extension of the existing contract was justified by the satisfactory work performance reported.

Issues: The primary questions were the approval of the selection process for professional staff, the determination of fair remuneration, and the validity of extending current contractual tenures.

Ratio Decidendi: Judicial approval of professional appointments in liquidation matters is granted when the selection is managed through an independent committee and aligns strictly with established financial directives to ensure fairness and institutional efficacy.

Result: Report allowed.

ORDER :

NIRAL R. MEHTA, J.

1. This report is filed for seeking following reliefs :

(a) This Hon’ble Court may be pleased to approve the names of candidates for the engagement of post of Trainee Company Secretaries and Company Secretaries as per recommendation of the selection committee mentioned in Para-8 & 9 of this report for the period of One (1) year which may be reviewed and extended by the Official Liquidator on completion of every year subject to assessment of quality of work performance of the Company Secretary and Trainee Company Secretary.

(b) This Hon’ble Court may be pleased to permit the Official Liquidator to pay monthly consolidated fixed pay of Company Secretary of Rs. 50,000/- plus Rs. 1000/- conveyance fee and Trainee Company Secretary of Rs. 15,000/- from “Common Pool Account” maintained by the office of the Official Liquidator, Ahmedabad as per guidelines issued by the Ministry of Corporate Affairs vide O.M. No. A-45011/15/2018-Ad-I dated 22-10-2018 and O.M. No. A-42/11/2018-Ad-II-MCA Part(2) dated 05-06-2024.

(c) This Hon'ble Court may also be pleased to permit the Official Liquidator to continue the engagement of Ms. Maitry Shah for further period of One (1) Year alongwith the engagement of other fresh candidates and to permit the Official Liquidator to pay her a monthly consolidated fixed remuneration of Rs. 55,000/- plus Rs. 1000/- towards conveyance from “Common Pool Account” maintained by the office of the Official Liquidator, Ahmedabad.

(d) This Hon’ble Court may also be pleased to permit the Official Liquidator to pay an amount of Rs. 20,000/- each to Mr. D. P. Patel, Dy. Registrar, High Court of Gujarat and Ms. Kavita Khatri and Mr. Alay Vasavada, Company Secretaries & Representative of ICSI, Ahmedabad Chapter as member of the selection committee towards honorarium.

(e) Such other and further orders and directions as this Hon’ble Court may consider just and appropriate may also be passed.

2. This Court vide order dated 15-10-2025 passed in Official Liquidator Report No. 63 of 2025 permitted the Official Liquidator to engage 4 Company Secretaries and 5 Trainee Company Secretaries in terms of sanctioned strength of 5 Company Secretaries and 15 Trainee Company Secretaries as per scheme of engagement of Company Secretary and Trainee Company Secretary approved by this Court vide order dated 27-10-2010 in Official Liquidator's Report No. 119 of 2010.

3. The Court also constituted a committee comprising of the Official Liquidator (convener), Dy. Registrar, High Court of Gujarat and Two Representatives of Ahmedabad Chapter of Institute of Company Secretaries of India (ICSI) for engagement of Company Secretaries and Trainee Company Secretaries.

4. The Court also allowed the Official Liquidator to issue vacancy circular for the same and to display in the Office of Ahmedabad Chapter of Institute of Company Secretaries of India (ICSI) and to also upload on website of Institute of Company Secretaries of India (ICSI) as well as website of High Court and Ministry of Corporate Affairs and Institute of Company Secretaries of India (ICSI).

5. The Court also directed the Official Liquidator that he shall undertake above process and thereafter file action taken report for further appropriate order of this Court.

6. Accordingly, the Official Liquidator has filed the present report, the report indicates as under :

(I) That, in compliance of the order dated 15-10-2025, the Official Liquidator issued letters dated 03-11-2025 to Registrar General, High Court of Gujarat and Chairman/Secretary of Institute of Company Secretaries of India (ICSI), Ahmedabad Chapter to nominate members for the Committee for appointment of Company Secretaries and Trainee Company Secretaries. Accordingly, the Registrar General, High Court of Gujarat vide letter dated 04-11-2025 nominated Mr. D. P. Patel, Dy. Registrar as a member of the Committee and Institute of Company Secretaries of India (ICSI), Ahmedabad Chapter vide letter dated 08-11-2025 nominated Ms.

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