MARIGOLD LEASING (INDIA) LTD. Vs. SHASHI BHUSHAN

JUDGEMENT

(1.) (I) Scope of Enquiry in Appeal

(2.) THE issue involved in the Company Appeal is whether the Company Court exercising jurisdiction in an application under Sections 433,434 and 439 of the Companies Act, has the power to appoint a provisional liquidator giving him liberty to sell properties not merely the property standing in the name of the Company but also the properties standing in the names of other Companies on the premise that such assets have been created with the funds collected by the Company.

(3.) IT is Pointed out by the respondents even at the outset that after passing of the order, the Official Liquidator has been assiduously gathering all the details relating to the Company, identified the properties belonging to the Companies and at the time of the hearing of the appeal, the proceedings have already become ripe for bringing up several properties for sale. It was also the contention that property that had been identified as belonging to the Company were really handed -over to the liquidator on the affidavit given on behalf of the Company by the erstwhile Directors and therefore the appellant is not entitled to resile from the affidavit and to contend that the properties that shall be brought for sale do not belong to the Company or that the Company cannot have offered to the liquidator to take possession of all the assets including the assets that did not stand in the name of the. Company.