OFFICIAL LIQUIDATOR OF: M/S. K.A.H. METAL SECTIONS PVT. LTD., (IN LIQN) ATTACHED TO HIGH COURT OF KARNATAKA F WING, 4TH FLOOR, KENDRIYASADAN KORAMANGALA, BANGALORE-34 Vs. M/S. KARNATAKA STATE FINANCIAL CORPORATION NO 1/1, THIMMAIAH ROAD NEAR CAN

JUDGEMENT

(1.) THIS application is filed by the Official Liquidator under Section 537 of the Companies Act stating that this Court has passed an order on 1.3.2005 in COP 38/2003 winding up the Company by name M/s. K.A.H. Metal Sections Pvt. Ltd., by virtue of Section 449 of the Companies Act. It is stated in the petition that the winding up petition was presented on 21.2.2003 and on the same day proceedings are commenced for winding up the Companies in Liquidation. It is further alleged that the entire assets of the Company in Liquidation was sold to the second respondent for a consideration of Rs. 9,10,000/ - and to the third respondent, who has purchased the scrap material for a sum of Rs. 85,000/ -, hence, the same is in violation of Section 537 of the Indian Companies Act. Therefore the petitioner has prayed for declaring the sale of the assets of the Company by Respondent No. 1 to Respondent Nos. 2 and 3 as null and void and further to direct the respondents to handover the assets of the Company to the applicant.

(2.) HEARD Sri V. Jayaram, learned Counsel appearing for the Applicant and Sri Gururaj Joshi, learned Counsel appearing for Respondent No. 1.

(3.) IT is contended by the learned Counsel for the petitioner that since the winding up proceedings commenced on 21.2.2003, ail sale effected thereafter is null and void and therefore the Sale Deed executed by the first respondent in favour of the second respondent deserves to be declared as null and void since the sale has been effected on 20.6.2004 and the Sale Deed has been executed on 11.2.2005. Whereas the final order in COP 38/2003 is passed on 1.3.2005.