VOLTAS LTD Vs. ALLWYN AUTO LTD

JUDGEMENT

(1.) THIS appeal is at the instance of the unsuccessful applicant, who seeks to assail the orders rejecting his application purported to have been filed under Section 476 and 457 (3) of the Companies Act, 1956 r/w Rule 338 of the Companies (Court) Rules, 1959, by the learned Single Judge as per the orders in C. A. No. 1118 of 2005 in C. P. No. 99 of 2000, dated 14-2-2007.

(2.) HEARD Sri M. S. Ramchandra Rao, learned counsel appearing for the appellant and Mr. Anil Kumar, learned counsel appearing on behalf of the Official Liquidator.

(3.) THE facts, which are necessary for disposal of the issue though appears to be an intrigues one but, which however, arises in all most in every liquidation proceedings and revolves around the various expressions used under the provisions of the Companies act, which falls for consideration at different levels. The appellant is the owner of the land to an extent of Ac. 7-14 guntas, which consists of the buildings and structures thereon, situated at Sanathnagar, Hyderabad. The said property was leased out initially to m/s. Hyderabad Allwyn by the then owners namely M/s. Alladin and Family under various registered lease deeds, some time in the year 1963. Later, M/s. Hyderabad Allwyn became a sick unit and in terms of the scheme of amalgamation approved by the bifr, M/s. Hyderabad Allwyn amalgamated with Voltas Limited, which is the appellant/ applicant. M/s. Allwyn Auto Limited, which is the respondent herein was incorporated on 31-5-1993. Under the said scheme of amalgamation M/s. Hyderabad Allwyn leased out the said property to the respondent along with the said structures for a period of 5 years from 7-4-1993, and a lease agreement was executed on 28-3-1993 between appellant/applicant and m/s. Hyderabad Allwyn on one side and the state of A. P. on the other. According to the terms of the lease monthly rent was fixed at rs. 1,00,000/-, which has to be paid by the respondent to the applicant in advance every month on or before 10th of each calendar month. The said lease expired on 27-3-1998. On 25-4-1998, a portion of the property to an extent of Ac. 3-00 was delivered to the applicant, however, the balance extent of ac. 4-14 cents remained with the respondent along with the structures thereon. Thus, the claim of the appellant was for the damages for the use and occupation of that portion of the property from the respondent herein from march 1996 onwards. In the meanwhile, the respondent company was wound up by the orders of this Court in C. P. No. 99 of 2000 on 17-7-2001, and consequently the entire assets and properties of the respondent company vested with the Official Liquidator. Later, this Court namely Company Court directed the Official Liquidator to hand over the said balance extent of Ac. 4-14 cents to the appellant/applicant herein as per the orders in C. A. No. 673 of 2002 dated 10-10-2002. In terms of the said orders, the official Liquidator delivered the possession to the appellant/applicant herein on 12-12-2003. Meanwhile, the Official liquidator had taken the steps by issuing notice to workmen, secured creditors and other creditors to prove their claims in the matter of M/s. Allwyn Auto Limited (in liquidation) by issuing a publication in deccan Chronicle on 9-4-2004. In response thereto the appellant had claimed in Form no. 66 along with appropriate affidavit in support thereof and other materials claiming an amount of Rs. 91,27,624/- towards the damages for the period till the delivery of possession i. e. , till 12-12-2003. On this, the official Liquidator passed orders on 16-9-2005 admitting the claim of the applicant for a sum of Rs. 8,41,750/- as unsecured debt against the estate of M/s. Allwyn Auto limited at Rs. 58. 050/- per month towards rent, electricity and water charges, however, as far as the balance claim is concerned he rejected the same. Therefore, the appellant had filed the present application in terms of section 476 and 457 (3) of the Companies act, 1956 r/w Rule 338 of the Companies (Court) Rules, 1959 for a direction to pay rs. 16,83,450/- representing the rental, electricity and water charges for a period from 17-7-2001 to 12-12-2003.