Delhi High Court
M/S Ceat Financial Service Ltd. vs M/S H-Lon Hoisiery Ltd. on 11 May, 2017
$~CP-1
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 11.05.2017
+ CO.PET. 71/1997
M/S CEAT FINANCIAL SERVICE LTD. ..... Petitioner
Through None
versus
M/S H-LON HOISIERY LTD. ..... Respondent
Through Ms. Ruchi Sindhwani, Advocate for
Official Liquidator
CORAM:
HON'BLE MR. JUSTICE JAYANT NATH
JAYANT NATH, J. (ORAL)
C.A.No.62/2017
1. By the present application filed under Section 481 of the Companies
Act, 1956, the OL seeks permission for dissolution of the company, H-LON
HOSIERY LTD. under liquidation and the OL, Delhi, be discharged as its
Liquidator. Prayer is also made by the OL that the balance amount may be
permitted to be transferred to the Reserve Bank of India after deduction of
the liquidation expenses and government commission as on the date of
dissolution.
2. It is stated in the said application that the Official Liquidator was
appointed as a Provisional Liquidator of H-Lon Hosiery Ltd. on 17.12.1997
and the Company was wound up on 24.12.1999 by this Court and the
Official Liquidator was appointed as the Liquidator of the company (In
Liqn). It is further stated that the Registered Office of the Company was
shown as C-4/1, Main Road, Wazirpur Industrial Area, New Delhi. The said
property was sealed by the Official Liquidator on 05.11.1998. It was
disclosed by Sh. Rattan Lal Garera, Ex-Director, in the Statement recorded
under Rule 130 of the Companies Court Rules, 1959, that the Regd. Office
was rented premises. It was stated by IFCI that the said property was
attached on account of certain dues owed to IFCI, therefore in terms of order
dated 12.03.2014, the possession of the Registered office was handed over to
the IFCI on 30.06.2014 after issuing letter to all ex-directors including Ratan
Lal Garera.
3. The factories of the Company situated at 63, Miles Stone, G.T. Karnal
Road, Gannaur Distt. - Sonepat, Haryana and C-18, Sector-7, Noida were
sealed and the possession of the premises was taken over on 26.09.1998 &
25.09.1998 respectively. The above mentioned assets of the Company (In
Liqn.) were sold and the rented premises were handed over. The details are
as under:-
S. Name & address of Factory / Recovery Status
No. Assets Made
1. Plant & Machinery including Sold for a In compliance of this
articles/moveable assets lying sum of Rs. Court's order dated
at Regd. Office-4/1, Main 7,80,000/- in 01-03-07, the
Road, Wazirpur Industrial terms of this possession of Plant
Area, Delhi. Court's order and Machinery and
Order dated other moveable
23.09.2004.
assets lying at the
Regd. Office was
handed over to
auction purchaser
Mr. Virender Kumar.
Land & Building Regd. Rented In terms of this
Office-4/1, Main Road, Court's order dated
Wazirpur Industrial Area, 12.03.14 the
Delhi. possession handed
over to IFCI on
30.06.2014 and
records shifted to
record room of this
office at South
Block.
2. Plant & Machinery, Furniture Sold for a In terms of this
& Fixture at 63, Miles Stone, sum of Rs. Court's order dated
G.T. Karnal Road, Gannaur 5,30,000/- in 18.11.04 the
Distt. - Sonepat, Haryana. terms of this possession handed
Court's order over to the auction
dated purchaser Shri Jugal
23.09.2004.
Kishore on 04.12.04.
Land & Building Rented In terms of this
at 63, Miles Stone, G.T. Court's order dated
Karnal Road, Gannaur Distt. 24.02.05 and
- Sonepat, Haryana 03.03.05 passed in
C.A. No. 826/04 the
possession was
handed over to
landlord/director
(Mr. Jaipal) of M/s
Alka India Private
Limited on 14.03.05.
3. Land & Building & Plant & Entire unit In terms of this
Machinery at C-18, Sector-7, alongwith Court's order dated
Noida land & 25.03.2004 the
building sold possession handed
for Rs. over to the purchaser
48,00,000/- Aryan Management
through
Services Private
UPFC, in
terms of this Limited, Noida on
Court's order 16.04.2004 by
dated UPFC.
25.03.2004.
4. The claims were invited by the Official Liquidator by an
advertisement published in newspapers namely "The Hindustan Times" and
"Amar Ujala" on 25.06.2007 and the last date for submitting the claims was
mentioned as 15.08.2007. After publication of the notice, the Official
Liquidator received 07 claims from the Secured creditor/unsecured creditors/
preferential creditors. The said claims are stated to have been examined; and
on the basis of funds available, the amounts disbursed to PICUP & State
Bank of Patiala are on pro-rata basis after approval taken from this Court.
5. It is also contended by the Official Liquidator that since the
respondent company has no assets to be realized and no recoveries are to be
effected, hence there would be no useful purpose in continuing with the
present proceedings and the respondent company be therefore be dissolved
forthwith in terms of section 481 of the Companies Act, 1956 and the
Official Liquidator be discharged as liquidator of the company.
6. The Official Liquidator relied upon the judgment of the Supreme
Court in the case of Meghal Homes (P) Limited Vs. Shree Viwas Girni
K.K.Samiti&Ors (2007) 7SCC 753, wherein it was held as follows:
"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."
7. In view of the above decision of the Supreme Court; and the facts and
circumstances of the case, the liquidation proceedings deserve to be brought
to an end. Consequently, H-Lon Hosiery Ltd is dissolved.
8. The fund position of the Company as on 20.12.2016 is Rs.46,169/-. It
is stated by the Official Liquidator that an amount of Rs.38,769.66/- is
required to be retained as against contingent liabilities/expenses/for
audit/Govt. fees etc. The Official Liquidator is directed to retain the said
amount and deposit the balance amount with the Reserve Bank of India in
terms of Section 555 of the Companies Act, 1956 as undistributed assets
after deduction of Liquidation expenses and Govt. Commission as on the
date of dissolution. Copy of this order be served to ROC within 30 days.
The petition, along with the application, is disposed off and the Official
Liquidator is discharged.
JAYANT NATH, J.
MAY 11, 2017/v
