OFFICIAL LIQUIDATOR OF THE MYSORE KIRLOSKAR LIMITED Vs. KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES

JUDGEMENT

(1.) HEARD the Counsel for the Official Liquidator and the learned Senior Advocate Shri K.G. Raghavan, appearing for the counsel for the respondent.

(2.) IT is the case of the Official Liquidator that the company in liquidation, M/s. Mysore Kirloskar Limited, had been ordered to be wound up by this court, by an order dated 1.4.2004 in Company Petition No. 166/2001 and he has been appointed as the Official Liquidator by virtue of Section 449 of the Companies Act, 1956 (Hereinafter referred to as the Act', for brevity).

(3.) THE learned counsel for the Official Liquidator would submit that the lease deed, on the face of it, is executed only to defeat the object of winding up and to ensure that the assets of the company are kept out of the hands of the Official Liquidator. As seen from the terms of the lease deed, the lease amount is a paltry sum of Rs. 1,250 per month in respect of a vast extent of land measuring over 6.29 acres and that the transaction having been entered into, just prior to the presentation of the winding up petition, would fall within the mischief of Section 531 -A of the Act.