RAJ STATE INDUSTRIAL DEV Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) This appeal has been filed by Rajasthan State Industrial Development and Investment Corporation Limited (for short 'the RIICO') challenging order dated 11.09.2015 passed by learned Company Judge whereby appeal filed by the appellant challenging rejection order dated 19.04.2011 passed by the Official Liquidator has been dismissed.

(2.) The dispute pertains to M/s. Sirohi Cement Limited, which was ordered to be wound up vide order dated 25.08.1995. Liquidation proceedings were initiated on a reference received from the Board for Industrial and Financial Reconstruction under Section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985. Learned Company Judge passed an order on 03.11.1995 on application filed by the appellant and Rajasthan Financial Corporation (for short 'the RFC'), permitting them to remain outside the liquidation proceedings. The RIICO and the RFC both were secured creditors. It was noted in that order that the possession of the unit had been taken over by the RIICO on 10.03.1995 and the dues of the RIICO were stated to be to the tune of Rs. 2.09 crores as on 15.10.1995 and dues of the RFC were stated to be to the tune of Rs. 82.52 lacs as on 01.10.1995. The learned Company Judge in the aforesaid order directed the RIICO and the RFC to remain out of winding up proceedings subject to submissions of their claims before the Official Liquidator within one month. The RIICO was further directed to take appropriate steps for sale by advertisement immediately. It was also directed that sale proceedings would be conducted in consultation with the Official Liquidator, who would be informed of each date of proceedings. The sale was made subject to confirmation by the Court. It is not in dispute that the sale of the unit of the company under liquidation was conducted with the permission of the Court and subsequently, the sale was confirmed by the learned Company Judge.

(3.) Mr. Sandeep Taneja, learned counsel for the appellant submitted that the appellant keeping in view the direction issued vide order dated 03.11.1995, submitted claim of the expenses incurred by it for upkeep and maintenance of the property in dispute as also for its protection by hiring chowkidars/guards, expenses incurred towards general insurance and issuance of various notices inviting bids for the auction of the subject property as also T.A. and D.A. of the staff, who visited the unit time and again. Total amount of Rs. 2,21,34,659.49 was claimed by the appellant as against which the Official Liquidator vide order dated 19.04.2011 rejected claim of the appellant for a sum of Rs. 1,26,726.50 on the ground that such expenses were incurred after taking over possession of the unit on 10.03.1995 and were not admissible in the case of winding up of company. Learned Company Judge has observed in the impugned order that Rs. 13,00,000/- were received from sale of plant and machinery of the unit of the company under liquidation and Rs. 45,00,000/- were received by way of sale of land and building of the unit of the company under liquidation. Claim of the appellant alone ran into Rs. 2,21,34,659.49 out of which Rs. 2,09,02,730.42 was admitted by the Official Liquidator. Besides that there are two more secured creditors being the RFC and SBBJ. Learned Company Judge therefore held that challenge to the order of rejection dated 19.04.2011 was merely academic.