Court allows survey and documentation for land measurement pending revival proposal as per liquidation rules.

ORDER

The above company application is filed by the State of Kerala seeking permission to the applicant to conduct a survey of the extent of land belonging to Kunnathara Textiles Ltd. (in liquidation), situated in Kozhikode District, under the supervision of the appropriate revenue/industrial authorities. They also seeks a direction to the Official Liquidator to provide the necessary assistance and cooperation for carrying out the said survey and to permit the applicant to obtain certified copies of the documents relating to the properties of Kunnathara Textiles Ltd. (in liquidation), from the custody of the Official Liquidator, for the purpose of measuring the land, for considering revival of the Company.

2. Going by the affidavit filed in support of the application, the Principal Secretary to Government, Industries Department, submits Co. Pet. No.30 of 1994 that a meeting was convened on 02.02.2023 by the applicant to consider the revival of the company under liquidation. In the meeting, the General Manager, District Industries Centre, and the District Collector, Kozhikode, were directed to furnish a report regarding the variation of approximately 1 acre of land in the total extent of land belonging to the respondent Company. Though steps were taken to conduct a survey, they were restrained from doing so, since the property is under the custody and control of this Court and the Official Liquidator informed that they cannot part with or share any document relating to the property of the Company in liquidation without the prior permission of this Court. It is in the said circumstances that the present application has been filed. 3. A detailed statement has been filed by the Official Liquidator wherein it is stated that the assets of the company were taken possession by the Official Liquidator including the movable items and that this Court as per order dated 07.02.2006 in Report No. 34, had permitted the Official Liquidator to sell the property of the company. However, due to objections from the workers, the sale could not take place. Though the Government intimated that they are taking steps for the revival of the company, no revival Co. Pet. No.30 of 1994 application has been filed before this Court. Thereupon, the Official Liquidator took further steps for the sale of the assets of the company. Thereupon, the Government submitted a proposal for the revival of the company, by filing C.A.No.117/2014 and seeking stay of winding up proceedings and this Court, vide order dated 28.10.2015, granted a stay for winding up the proceedings. Later, this Court, by an order in C.A.No.117/2014 directed the Official Liquidator to value the assets of the company through an expert valuer, who assessed the total value of the company’s assets at Rs.4,52,03,700/-. Later, the Government abandoned the proposal for revival of the company. Thereupon, the Government themselves have filed C.A.No.142/2018 to vacate the stay granted by this Court on 28.10.2015 in C.A.No.117/2014 and the stay was vacated by this Court as per Annexure A order, wherein it is pointed out that the Government is incurring a huge liability for taking up and maintenance of the assets of the company. Thereafter, the Official Liquidator took steps and sought permission from this Court to sell the assets by fixing the upset price as Rs. 4,52,03,700/-. But the Government objected to the same stating that the total value of the property is Rs.12,80,00,000/- and the price fixed by the Official Co. Pet. No.30 of 1994 Liquidator is low. Thereupon the Court by order dated 04.11.2024 directed the Official Liquidator to consider the objections, re-fix the upset price and issue a fresh e-auction notice. It was ordered that the Official Liquidator may seek the assistance of the District Collector, Kozhikode for this purpose. A request was made before the District Collector to