VIVEK CONTINENTAL PVT. LTD. Vs. O.P.GUPTA

JUDGEMENT

(1.) This appeal under section 10 (f) read with section 483 of the Companies Act, 1956 and section 303 of the Companies Act, 2013 is directed against the order dated 8.7.2019 passed in Company Petition No.1/2012. The impugned order is in the following terms:

(2.) The grievance raised by the appellant is that, the procedure prescribed under section 450 of the Act, 1956 has not been adhere to. It is urged that sub-section (2) of Section 450 mandates that before appointing a provisional liquidator, the Tribunal shall give notice to the company and give a reasonable opportunity to it to make its representations, if any, unless, for special reasons to be recorded in writing, the Tribunal thinks fit to dispense with such notice. It is urged that the appellant is not afforded any opportunity of hearing, nor the reasons are recorded dispensing the service of notice which makes the order vulnerable and de hors the mandate of sub-section (2) of Section 450 of 1956 Act. It is urged that the drastic action of appointment of liquidator ought not to have taken recourse as there is no complaint of any mismanagement, nor it is insolvent.

(3.) Reliance is placed on the decision in Virendrasingh Motilalji Bhandari and others Vs. Nandlal Bhandari and sons, Pvt. Ltd. Indore, 1978 M.P.L.J. 772; wherein, it is held that the appointment of a provisional liquidator is a drastic measure and should not be restored to except in special circumstances, i.e. in cases of urgency.