T NARAYANAN Vs. OFFICIAL LIQUIDATOR HIGH COURT MADRAS AS THE LIQUIDATOR OF SRI VISALAKSHI MILLS PRIVATE LIMITED

JUDGEMENT

(1.) Can the appellant son of the Managing Director of the Company in liquidation seek to set aside the winding up order dated 3.12.2008 made in C.P.No.78 of 2008 invoking inherent powers of the Company Court under Rule 9 of the Companies Court Rules on the technical plea of irregularity in the advertisement of publication of the Company Petition for winding up is the question falling for consideration in this appeal, which arises out of the Order of dismissal of the application C.A.No.1286 of 2010 (30.03.2011) preferred by the appellant.

(2.) The Company Sri Visalakshi Mills Private Limited owes an amount of Rs.79.35 Crores to the secured creditors Indian Bank, ARM, Madurai, Dena Bank, Madurai, workmen and other claims payable to E.S.I.Corporation and E.P.F.Organisation. For recovery of the amount of Rs.13,18,88,090/-, Indian Bank has initiated SARFAESI proceedings in 2004. After long drawn litigation, unit 'C' was sold in 2007. In respect of 'A' and 'B' units, the SARFAESI proceedings are pending. Earlier, the Company challenged the order of appointment of the Official Liquidator to take possession of the properties and to give police protection and the Company failed to comply with the Order of the Court made in O.S.A.No.312 of 2008. In the second round of litigation, the Company also challenged the sale of assets of the Company. In these circumstances, can the appellant claiming to be the Contributory invoke the inherent jurisdiction of the Company Court to re-agitate the matter on the ground of irregularity in the initial advertisement in the two newspapers dated 3.7.2008 and that the said irregularity in the publication in the news papers would vitiate the order of winding up (3.12.2008) are the questions to be resolved in this appeal.

(3.) We have heard Senior Counsel Mr.T.R.Rajagopalan appearing along with Mr.Anand for the appellant. We have also heard Mr.V.Prakash, learned Senior Counsel appearing for the Official Liquidator along with Mr.S.R.Sundar and Mr.Vijay Narayan, learned Senior Counsel appearing for the 2nd respondent/petitioning creditor along with Mr.R.Parthiban. We have also heard Mr.N.G.R.Prasad, learned counsel appearing for the workmen along with Mr.Srinvasa Murthy, who filed impleading petition. We have also heard Mr.Jayesh B.Dolia, learned counsel appearing for Indian Bank and Mr.G.R.Lakshmanan, learned counsel appearing for Dena Bank.