IN REORKAY INDUSTRIES LTD. (IN LIQUIDATION) Vs. ABC

JUDGEMENT

(1.) The official Liquidator has submitted a report dated 27-1-1999 and has prayed therein for certain directions. Pursuant to the order of this Court dated 14-12-1998 and to comply with the directions which is contained in para 11 therein, offers were invited from firms of Chartered Accountants to carry out the work of writing the books and audit. The official Liquidator has received quotations from four firms. The firm at Serial No. 4 at para 15 has quoted lump sum of Rs. 60 lakhs and firm at serial No. 2 has agreed to work in terms of fees prescribed by ICAI. In the light of that direction is sought to invite quotations from at least another 20/30 firms. It is also pointed out that for the purpose of audit separate firm will have to be appointed than the firm which will write the accounts book. On behalf of the workmen their learned counsel contend that they may also be allowed to give the names of Chartered Accountant. The official Liquidator points out that he has already about 150 firms listed with him and union can from the 150 firms recommend the names therein. On behalf of the secured creditor, viz., Oriental Bank Ltd., they agreed to make an initial deposit of Rs. 10,000. So also similar offer has been made on behalf of the Corporation Bank another secured creditor. There are all together about 17 secured creditors of which according to the official Liquidator majority have to file their claim in respect of their secured debts. There is also direction by this Court that the allegation of fraud, misfeasance and misappropriation has to be looked into in terms of para 11(3) of the order of this Court. Considering what has been set out earlier and in the report following directions need to be given:

(2.) Prayer (b) of the Report is accepted. Whilst preparing valuation the official Liquidator to give notice to the Union through their counsel at the address to be left at the office of the official Liquidator. The Union to nominate two persons for that purpose. The official Liquidator permitted to carry out the valuation by appointing three valuers for the three units.

(3.) Prayer (c) of the Report is accepted.