OFFICIAL LIQUIDATOR Vs. CHARANJIT PAL JINDAL & ORS

JUDGEMENT

(1.) Vide order dated 5.8.2010- recalling of an order of winding up passed on 19.7.2002, at the instance of Charanjit Pal Jindal, Ajay Kumar Jindal, Abhey Kumar Goyal (hereinafter 'the non-applicants) this Court inter-alia directed that during the pendency of the reference No. 185/2002 before the BIFR, the assets of the company shall remain in the custody of the Official Liquidator and the expenses incurred in regard thereto- towards security etc., would be borne by the non-applicants.

(2.) The matter now comes up on an application filed by the Official Liquidator under section 9 of the Company (Court) Rules, 1959 (hereinafter 'the Rules of 1959'). It has been stated that the non-applicants, as per the order dated 5.8.2010 passed by this Court paid the security expenses incurred by the Official Liquidator upto October 2011. Thereafter in-spite of repeated reminders they have not paid due amount till date towards the expenses incurred by the Official Liquidator on the security of the two immovable properties of the company. These amounts now aggregate to Rs.7,43,744/- at the rate of Rs.46,484/- p.m. It has been submitted that it now transpires that the BIFR in the meantime vide order dated 14.3.2012 had rejected reference No. 185/2002 holding it to be not maintainable under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter 'the Act of 1985'). However this fact was neither brought to the notice of the Company Court nor the Official Liquidator as directed by this Court in its order dated 5.8.2010. It has been further submitted that the Official Liquidator has also not been informed as to whether any appeal was filed by the non-applicants as Directors of the Company or the Company itself against the order dated 14.3.2012 passed by the BIFR. It has been submitted that in the circumstances it would be appropriate to ensure compliance with this Court's order dated 5.8.2010 and in the interest of justice the non-applicants be directed to make complete payment to the Official Liquidator as reimbursement of the expenses incurred by him towards the security of the assets of company's (i.e. M/s. C.V Steels Limited). It has also been prayed that the non-applicants be also directed to place before this Court the current status with regard to the order dated 14.3.2012 passed in reference No. 185/2002 such that further proceedings in the winding up proceedings pending since 1998 are taken.

(3.) Subsequent to the filing of application notice thereon on 26.7.2013 was issued. On 10.4.2013, time to file reply was sought on behalf of the non-applicants as was on 27.9.2013 and also on 18.10.2013. On 12.11.2013 when counsel for the non-applicants sought further time to file reply, the Company Court directed interim payment of Rs. 1,25,000/- towards reimbursement of security charges by the non-applicants. The matter was posted for 10.12.2013. A cheque towards payment of amount as directed by this Court was then handed over to the Official Liquidator. The said cheque however was dishonoured as recorded in the Company Court's order dated 19.12.2013. Whereupon, counsel for the non-applicants sought time to take instructions from his clients. The matter was posted on 9.1.2014. The Company Court then allowed the non-applicants to pay the amount under the dishonoured cheque by way of a demand draft if so advised on 23.1.2014. It was then so paid and vide order dated 30.1.2014, the delay in deposit of the amount of Rs. 1,25,000/- towards security expenses was, on the non-applicants application for the purpose condoned. The amount paid was appropriated by the Official Liquidator subject to final orders on the Official Liquidator's application seeking reimbursement of expenses expanded on the security of the Company's assets as directed by this Court under its order dated 5.8.2010.