SIDDHESWARI COTTON MILLS PVT. LTD Vs. OFFICIAL LIQUIDATOR BEING LIQUIDATOR OF M/S. ANANTAPUR TEXTILE LTD

JUDGEMENT

(1.) ANANTAPUR Textile Limited was a company carrying on business of inter alia, hosiery goods. Siddheswari Cotton Mills Private Limited was also carrying on similar type of business. Anantapur and Siddheswari, at one point of time, belonged to the same group having factory on a plot of land contiguous to each other. Subsequently, Siddheswari changed hands. Siddeswari came to the present management.

(2.) ANANTAPUR was wound up by this Court vide order dated October 9, 2002. The Official Liquidator took possession of the assets. At that time the original promoter group was having the control of Anantapur and Siddheswari as well. When the Official Liquidator went to take possession, they felt difficulty in absence of appropriate boundary demarcating the land belonged to the company in liquidation as also Siddheswari. The Official Liquidator came to know from the records of the Revenue Authority that the company in liquidation, owned 11.73 acres of land. When the Official Liquidator attempted to take possession of the said land measuring about 11.73 acres Siddheswari objected. They subsequently made application for disclaimer of two acres of land which, according to them, being possessed by the company in liquidation. Despite several attempts, the land could not be demarcated. The Official Liquidator appointed valuer who valued the property as per the physical measurement as well as consulting land revenue records. The Official Liquidator then put up the property for auction. M/s. Bharat Metal Stores gave the highest offer of Rs.2.75 crores and the Court concluded the sale in their favour.

(3.) SEVERAL orders were passed directing settlement of claim of the workers followed by direction for disbursement. On September 28, 2005 after about one year of sale Siddheswari filed an application for a direction upon Official Liquidator to identify and demarcate the land in question. Several orders were passed. However, despite attempts it could not be implemented. There were rival acquisitions. We do not wish to go into this question on this stage.