OFFICIAL LIQUIDATOR HIGH COURT OF ANDHRA PRADESH AND LIQUIDATOR OF GARVEE GRANITES LTD Vs. DANTULURI RAJU

JUDGEMENT

(1.) THIS is an application by way of Judges summons filed by the Official Liquidator (OL) acting as Liquidator of M/s. Garvee Granites Limited (in liquidation ). In the application filed under Section 468 of the Companies Act, 1956, read with rule 9 of the Companies (Court) Rules, 1959 (the Rules, for brevity), Liquidator prayed this Court to direct the respondent to remit an amount of Rs. 80,76,906/-with interest at 12% per annum to the credit of the company in liquidation.

(2.) AN affidavit is filed by the OL in support of the application with the following allegations and averments. By an order dated 20. 09. 2001 in R. C. C. No. 6 of 2001 this Court directed winding up of M/s. Garvee Granites Limited. The OL attached to this Court was appointed as Liquidator under Section 449 of the companies Act. Liquidator filed C. A. No. 32 of 2006 under Section 477 of the companies Act to summon the respondent, who is Ex-Managing Director, and examine him with regard to details of the quarry lands owned by the company in liquidation. The Ex-Managing Director appeared before the Court and furnished details of land owned by Company situated in different villages of Khammam and warangal Districts. All these lands were taken possession by OL with the assistance of State Bank of India, who advanced loans to the Company in liquidation. While taking possession, Officials observed illegal blasting and quarrying activities. The same was reported to the Court. Thereupon this Court directed to contact qualified technical person to evaluate and assess the loss sustained by the company due to illegal mining. Subsequently, by order dated 27. 12. 2006 this Court directed Assistant Director, Mines and Geology (ADMG), khammam, to inspect the company lands in two Districts and ascertain the value of illegally mined minerals. The ADMG submitted report vide letter dated 16. 03. 2007 estimating the value of illegally mined mineral at Rs. 32,17,060/ -. The value of mineral which was extracted and dispatched legally was also estimated at Rs. 98,93,287/ -. As per the report, in the land comprised in survey no. 13 of Gudurupadu village and survey No. 389/b of Beerolu Village, the lessee carried out mining work during the pendency of the proceedings before the Board for Industrial and Financial Reconstruction (BIFR) from 31. 03. 2001 to 20. 09. 2001. Therefore, this has to be accounted for by the respondent. As assessed by the ADMG, the total value of black granite extracted in the lands comprised in different survey numbers is Rs. 80,76,906/ -. Insofar as the land situated at Ravigudem, Ammapalem Villages in Warangal District, as per the report of the ADMG, no leases were granted to the company, and therefore, exact quality and value of the minerals could not be assessed. It is further alleged that respondent being Ex-Managing Director failed to disclose existence of subject lands to the Office of OL and also allowed quarrying/excavation of minerals by third parties. Therefore, he is alone liable to pay the amount claimed in the application.

(3.) THE respondent filed a counter affidavit opposing the application. The brief contents of the same are as follows. The respondent is not connected with the alleged illegal mining as referred to in the report of the ADMG. He is also not connected with the alleged mining operations in survey No. 13 of Gudurupadu and survey No. 389/b of Beerolu Village. That the value of illegally mined granite is Rs. 80,76,906/- is denied. During the examination of respondent under section 477 of the Companies Act the Liquidator has not questioned about the alleged illegal mining or enjoyment or possession of the properties by the respondent. Therefore, the present application for direction of payment is not maintainable. There is no material on record to show that respondent is liable to pay the amount. Respondent has not misappropriated any amounts, and having filed a similar application earlier, it is not open to OL to file another application.