OFFICIAL LIQUIDATOR OF VARIOUS COMPANIES Vs. STATE

JUDGEMENT

(1.) THE Official Liquidator has filed this report seeking permission of this Court to deduct an amount of Rs. 3,54,90,803 from the liquidated assets of the 103 Companies (In Liquidation) as per Annexure A to this report, in terms of Rule 291 of the Companies (Court) Rules, 1959 and to pay the said amount to the public account of India by depositing a cheque of the said amount for crediting to the Central Government's account in Reserve Bank of India through designated Bank of Ministry of Corporate Affairs, Punjab National Bank, Ashram Road, Ahmedabad. The Official Liquidator has also sought the permission to encash the fixed deposit receipts for making payment of this amount to the Central Government as per Annexure A to this report.

(2.) SINCE the permission sought for by the Official Liquidator in the present report, if granted, will affect large number of Secured Creditors and workers, the Court was of the view that all concerned parties are required to be heard before passing any order on this report. Accordingly, this Court vide order dated 29 -1 -2008 directed the office to place a notice of hearing on the notice board informing all those learned advocates appearing for the Secured Creditors and Workers about this report and requesting them to collect the copy of the report from the Official Liquidator and to make their submissions before the Court on 5 -2 -2008. Pursuant to the notice placed on the notice board, inviting objections from the affected parties, Mr. Sandeep Singhi, learned advocate appeared on behalf of one of the Secured Creditors, namely, ICICI Bank Limited. He has raised a preliminary issue to the effect that no details are furnished by the Official Liquidator as to how the amount has been calculated by him. Despite the notice placed on the notice board, only one Secured Creditor has come forward. The Court, therefore, directed the Official Liquidator to issue notice to all Secured Creditors and Workers Union who are on his record so that if they have to say anything about the prayer made in his report, they may remain present before the Court. The Court has also directed the Official Liquidator to send report as well as the calculation of the two test cases, namely, Ambika Mills and Calico Mills along with the notice. The Court has also directed the Official Liquidator to issue notice on Standard Chartered Bank, Kotak Mahindra Bank Limited and ARCIL, assignees in whose favour debts have been assigned and as per the directions issued by the Division Bench, they are required to be heard in all pending cases where the interest of the assignors is involved.

(3.) PURSUANT to the order passed by this Court on 18 -3 -2008, the Official Liquidator has filed his report on 3 -4 -2008 stating therein that the Rule 291(2)(i) requires the Official Liquidator to pay to the Central Government its fee at the rate prescribed therein. Upon the total assets including produce of calls on contributories, interest on investments and rents on their properties realized or brought to credit by the Official Liquidator (sic). Under this rule, the Central Government fees are required to be paid on all realizations brought to the credit of the Company (In Liquidation) by the Official Liquidator. It is further stated in the said report that as and when assets of a particular Company are put at sale by issuing advertisement in the Newspapers, a date is specified in the advertisement on which the properties of the Company are kept open for inspection of the intending buyers before giving their offer. No fee for such inspection was charged by the Official Liquidator. However, as and when any particular intending buyer makes a specific request to the Official Liquidator, requiring inspection of properties of any Company for any purpose, a fee of Rs. 1,000 is charged if the assets are situated at Ahmedabad and fee of Rs. 2,000 is charged if the assets are situated outside Ahmedabad. Such realizations or collections are debited by the Official Liquidator under the head 'Inspection charges' which are in the nature of realizations and collections on which Central Government fee is required to be deducted in accordance with Rule 291(2)(i).