S K BHARGAVA Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) HEARD learned Counsel for the applicant and perused the entire record of the application.

(2.) THE applicant has not given out the provisions of the Companies Act, 1956 or the Companies (Court) Rules, 1959 as to under which provision he has filed this application.

(3.) THE applicant is none other than the Director of M/s. Surya Power Limited (In liquidation). It is not gainsay that because of the misdeeds, inaction, omission and mismanagement etc. of the applicant and its other Directors, the Company has gone in liquidation. It is really shocking and surprising that a person who himself may be responsible for bringing down the Company (in liquidation) to this position, has come up to this court with this application. It is not in the larger interest of the creditors as well as shareholders of the Company (in liquidation) but it appears to have been filed for the benefit of the applicant himself. The applicant has not come up to take first the company out of liquidation; he entered into settlement with the Bank who has already obtained a decree against the Company from the Debt Recovery Tribunal. The Official Liquidator has sold the assets of the Company (in liquidation) and the sale proceeds are lying with him. The applicant is desirous and in fact making an attempt to get the money lying with the Official Liquidator adjusted against the judgment taken by the Debt Recovery Tribunal against the Company (in liquidation). It is not the amount of the Directors. The applicant wants to settle the matter with Bank by paying some money from his own pocket and rest of it from the Company (in liquidation) but that is not permissible. Otherwise also it is a matter between the Bank and the Official Liquidator and not the applicant. Such a prayer may be available to the applicant on a compromise scheme under Section 391 of the Act, 1956 is brought to the court. That is not the case. The amount of sale proceeds of the assets of the company (in liquidation) is lying with the Official Liquidator, may not be hundred per cent of the Bank. The Official Liquidator has to disburse this amount amongst the claims of the categories as provided under Sections 529 and 530 of the Act, 1956. There may be other secured creditors. The claim may also be of tax liability of the Company (in liquidation).