Delhi High Court
M/S Nagrath Firebricks & ... vs ---------------------- on 12 December, 2012
Author: Indermeet Kaur
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Judgment: 12th December, 2012
+ CO.PET. 71/1981
IN THE MATTER OF
M/S NAGRATH FIREBRICKS &
POTTERIES P.LTD. ..... Petitioner
Through Mr. Kanwal Chaudhary, Adv. for
the Official Liquidator.
Ms. Seema Gupta, Adv. for
Punjab & Sind Bank.
CORAM:
HON'BLE MS. JUSTICE INDERMEET KAUR
INDERMEET KAUR, J. (Oral)
Co. Appl. 2418/2012
1 This application has been filed under Section 481 of the
Companies Act, 1956 seeking dissolution of the Company M/s. Nagrath
Firebricks & Potteries Pvt. Ltd. The Company was provisionally wound
up on 19.08.1981 and finally on 04.05.1984.
2 The registered office of the Company was located at 2, Tolstoy
Marg, New Delhi which is not in possession of the Official Liquidator.
The factory premises of company was located Kalu Bathan, Nirsa Chatti
Dhanbad which was sold to M/s Maruti (India) International auction
purchaser for Rs. 6,00,000/- in terms of the order of this Court date
05.04.1991.
3 There were three directors of the Company; statement of affairs
was filed by them; notices were issued to all debtors of whom mostly
denied their liabilities on different grounds.
4 Official Liquidator had invited the claims by publication in the
newspapers, namely, 'Hindustan Times' and 'Indian Express'; 96 ex-
workers had filed their claims; claims of 61 workers have already been
paid; the unclaimed amount of Rs. 1,84,462/- of remaining 35 workers
has been transferred to Public Account of India in the Reserve Bank of
India in a separate account as per the provisions of Section 555 of the
Companies Act in terms of the order of this Court dated 30.08.2012.
5 Punjab & Sind Bank, the only secured creditor had filed its claim
for an amount of Rs. 15,26,101/-; its claim for Rs. 14,66,022/- had been
admitted by the Official Liquidator and an admission letter for the same
had also been issued on 28.09.2012. A meeting with the representative
of Punjab & Sind Bank was held in the office of the Official Liquidator
on 10.12.2012; representative of the Bank i.e. Mr. Amar Kumar Gupta,
Sr. Manager had stated that the bank has created charge over the
goods/plants and machinery of the Company; no charge has been
created on land & building of the Company situated at Kalu Bathan,
Nisra Chatti Dhanbad; in the meeting, it was decided that sum of Rs.
10,00,000/- be released in favour of Punjab & Sind Bank against full
and final settlement of its claim. The Official Liquidator undertakes to
release this amount to the Punjab and Sind Bank today itself. The
Punjab and Sind Bank is also represented by counsel. No other claim
has been received by the Official Liquidator
6 There are no other assets available for realization. In view of the
aforenoted factual position, no useful purpose would be served in
keeping the company alive. As per the books of account maintained by
the office of Official Liquidator the fund position of the company as on
date is Rs. 2,07,008/- (after payment of Rs.10 lacs to the Punjab and
Sind Bank).
7 In the case of Meghal Homes (P) Limited Vs. Shree Niwas Girni
K.K. Samiti & ors. (2007)7 SCC 753, the Supreme Court, inter alia, in
paragraph 31 thereof, held as under :-
"......when the affairs of the Company had been
completely wound up or the Court finds that the Official
Liquidator cannot proceed with the winding up of the
Company for want of funds or for any other reason, the
Court can make an order dissolving the Company from
the date of that order. This puts an end to the winding-up
process."
8 In view of the above decision of the Supreme Court and the facts
and circumstances of this case, the liquidation proceedings deserve to be
brought to an end. Consequently, M/s. Nagrath Firebricks & Potteries
Pvt. Ltd is dissolved under Section 481 of the Companies Act. The
Official Liquidator is permitted to transfer the balance fund i.e. Rs.
2,07,008/-available in the Company's account to the Reserve Bank of
India after creating provision for payment of government fee, audit fee
and other liquidation expenses. The Official Liquidator is permitted to
close the books of account of the company. A copy of this order shall be
communicated to the Registrar of Companies within 30 days by the
Official Liquidator. The C.A. No. 2418/2012 as also the Company
Petition No. 71/1981 are disposed of and the Official Liquidator is
discharged. The files and records of the company be consigned to record
room.
INDERMEET KAUR, J
DECEMBER 12, 2012
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