MANECK NOSHIRWAN KAKA Vs. OFFICIAL LIQUIDATOR HIGH COURT

JUDGEMENT

(1.) This appeal has been preferred by the three appellants against the judgment and order dated December 20, 1983, of D. K. Sen J. dismissing the application of the appellants under Sections 446 and 466 of the Companies Act 1956.

(2.) The building being premises No. 12, Chowringhee Road and No. 1 Chowringhee Palace, Calcutta, admittedly belongs to the Life Insurance Corporation of India, hereinafter referred to as " the LIC ". The said building was in possession of the Ritz Continental Hotels Ltd., hereinafter referred to as " the company ", by virtue of a deed of lease, dated November 30, 1973, executed by the LIC for a period of 25 years commencing from March 15, 1971, at a rent of Rs. 65,235'85 per month. The company defaulted in payment of rent and other charges to the LIC from April 1, 1974. The LIC by its advocate's letter forwarded to the company a statement of the outstanding dues of the company to the LIC amounting to about Rs. 10,00,000 from April. 1, 1974, up to July, 1976. On July 27, 1976, the LIC terminated the lease of the company in respect of the said building being premises No. 12, Chowringhee Road and No. 1, Chowringhee Palace, Calcutta, by serving on the company a notice calling upon it to quit and vacate and deliver vacant and peaceful possession of the buiding. Thereafter, on March 12, 1977, the LIC also served on the company a statutory notice under Section 434 of the Companies Act. The LIC also filed a winding-up petition before a company court judge of this court and obtained an order for the winding-up of the company. The said order, however, was stayed by the appeal court in the appeal preferred by the company. On March 25, 1980, the company was, however, directed to be wound up on an application for winding-up of one Md. Noor Navi and the official liquidat&r was directed by the court to take possession of the books, documents and assets of the company. Against that order of winding-up, the company preferred an appeal and also obtained an interim order for stay of winding-up. The application, however, was dismissed by the appeal court on June i 1, 1980, and the ad interim order for stay was also vacated. On January 14, 1981, the LIC took out a judge's summons, inter alia, praying for an order on the official liquidator directing him to disclaim the leasehold interest of the company in respect of premises No. 12, Chowringhee Road and No. 1 Chowringhee Palace, Calcutta. The said application was dismissed by the learned company court judge. The LIC preferred an appeal against the said order of the learned judge dismissing the application.

(3.) The appeal court, consisting of Sabyasachi Mukharji and S. C. Sen JJ., set aside the order of the learned judge and allowed the appeal of the LIC and directed the official liquidator to disclaim the property as prayed for by the LIC. The LIC was given leave to continue the proceedings under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971. The official liquidator prayed for the stay of the operation of the said order of the appeal court but the appeal court by its order dated February 9, 1983, disallowed the said prayer of the official liquidator. The official liquidator filed a special leave petition before the Supreme Court against the order of the appeal court. The special leave petition was, however, dismissed by the Supreme Court. Pursuant to the order of the appeal court, D. K. Sen J., by his order dated April 29, 1983, directed the official liquidator to forthwith formally disclaim the premises in question in favour of the LIC and the latter was directed to provide a godown or a storing space for storing the movable goods in the premises till the title thereto was decided. The appeal of the company against the said order of D. K. Sen J. directing the official liquidator to disclaim the said premises was dismissed by the appeal court by its order dated June 22, 1983. On July 22, 1983, the official liquidator disclaimed in writing the leasehold interest of the company in the said premises and forwarded the same to the LIC.