Delhi High Court
The Swastik Hand Made Paper Pcis ... vs M/S Toyin Woodcraft (India) Pvt. ... on 21 October, 2019
$~C-29
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 21.10.2019
+ CO.PET. 169/2001
THE SWASTIK HAND MADE
PAPER PCIS LTD. & ANR ..... Petitioners
Through:
versus
M/S TOYIN WOODCRAFT (INDIA) PVT. LTD. ..... Respondent
Through: Mr. Deepak Anand and Mr.
Aayushmaan, Advocates for Official
Liquidator.
CORAM:
HON'BLE MS. JUSTICE JYOTI SINGH
JYOTI SINGH, J. (ORAL)
Co. Appl. No. 1111/2019
1. This is an application filed by the Official Liquidator seeking the
following prayers:
"i. Permit the Official Liquidator to release such amount to the
Secured Creditor i.e. India SME Asset Reconstruction Co. Ltd., as
would be available on the date of dissolution of the Company;
ii. Permit the Official Liquidator to close the books of Accounts of
the Company (In Liqn.) maintained by the office of the Official
Liquidator, Delhi;
iii. Pass an order dissolving the Company under Section 481 of the
Companies Act, 1956 and/or discharge the Official Liquidator as the
Liquidator of the Company, and/or
iv. Pass such other and further order(s) as this Hon'ble Court may
deem fit and proper in facts and circumstances of the present matter"
2. The application is allowed and the Official Liquidator is permitted to
release an amount of Rs. 15,89,382.70/- to the Secured Creditor i.e. India
SME Asset Reconstruction Co. Ltd., as would be available on the date of
dissolution of the Company and permit the Official Liquidator to close the
books of accounts of the Company in liquidation maintained with the office
of the Official Liquidator.
3. It is stated that vide order dated 05.10.2006 the Official Liquidator
was appointed as the Provisional Liquidator for the Respondent Company
and the Respondent Company was wound up on 14.11.2014, whereafter the
Official Liquidator attached to this Hon'ble Court was appointed as its
Liquidator.
4. It is stated in the said application that as per records maintained by
Registrar of Companies, Delhi the following persons were shown as
directors of the company:
i) Sh. Sushanto Mitra,
R/o B-1330, Ground Floor,
Palam Vihar, Delhi.
ii) Mrs. Kanta Giri,
C-8/8593, Vasant Kunj, New Delhi.
5. It is stated in the present application that on 23.12.2006, the
possession of the registered office was taken over whereafter the same was
handed over to the landlord on superdari and records found therein were also
given on superdari to the landlord.
6. It is further stated in the application that on 24.12.2006, the Officials
of the Official Liquidator visited the factory premises of the Company
situated at 4 Km, Ambala Road, Saharanpur, U.P. which was found locked
and was guarded by one M/s Bhagwati Services on behalf of Indian
Overseas Bank, New Delhi.
7. On 23.02.2011, this Court appointed M/s Contex Associates as an
approved Valuer to value the Land and also the Plant, Machinery, semi-
finished goods and all moveable property lying at the aforementioned
premises.
8. In furtherance of the said auction, proceedings of the abovestated
premises were held in December 2011 by the Indian Overseas Bank
alongwith Official Liquidator. However, no tender/EMD for land and
building was received. Hence, auction for the same could not be initiated.
However, auction in respect of Plant and Machinery (Finished and Semi
finished goods), two Wheelers and plantation was proceeded with and the
successful bidders who deposited the bid amount of Rs.12,10,255/- with the
Official Liquidator and were handed possession thereof on 13.06.2012 in
compliance with order dated 29.03.2012 passed in Co. Appl. No.2558/2011.
9. Vide order dated 13-09-2012 passed in Co. Appl. No. 609/12 filed by
Indian Overseas Bank this Court permitted them to sell the property being
the Secured Creditor but the Auction Process scheduled on 17.12.2012 failed
since no bidders came forward to purchase the property at Reserve Price.
Thereafter the property was put for auction by e-process and the date of
auction was fixed as 30.03.2013 yet no bids were received in the e-auction.
Thereafter another attempt of the sale of said property through proclamation
through "Online Electronic Bidding" through the Website
https://www.drt.auctiontiger.net on 10.07.2015, also failed, as no bid was
received.
10. The claims were invited by the Official Liquidator on 24.04.2013 and
the last date of submitting the claims was fixed as 17.05.2013. However, no
claims were received from creditors.
11. The claims of the contributories were invited on 30.04.2014 and the
last date of submitting the claims was fixed as 20.05.2014. However, no
claims were received.
12. The citation was published by the Official Liquidator in "Statesman"
(English Edition) & "Jansatta" (Hindi Edition) on 10.04.2015.
13. On valuation, the value of the assets of the Company were found to be
Rs. 11,030/- with a realizable value (on account of distress sale) of Rs.
9,375/-. The said goods after auction were sold to the highest bidder in
receipt of bid money of Rs. 38,000/-, on 09.05.2018. Records of the
Company lying at the above said premises were also shifted to the record
room.
14. It is stated in the application that the Official Liquidator received one
claim from India SME Asset Reconstruction Limited to whom SIDBI has
assigned its debts, India SME Asset Reconstruction Co. Ltd. It was later
found that India SME Asset Reconstruction Co. Ltd had filed O.A (74/2002)
before Debt Recovery Tribunal, Delhi and a Recovery Certificate was issued
for Rs.1,30,50,733/- as on 12.04.2002 alongwith interest, totalling to
Rs.11,97,04,528/- as on 29.05.2019. It was further informed that India SME
Asset Reconstruction Co. Ltd had not received any amount in respect of
their claim.
15. It has been stated in the application that after deduction, the
liquidation expenses and other expenses made in the course of liquidation
proceedings the amount left in the company account is Rs15,89,382.70/-.
16. It is also stated that there are no recoverable assets of the company in
liquidation in the knowledge of the official liquidator, whereas the claim of
secured creditor i.e. India SME Asset Reconstruction Co. Ltd., is Rs. 5 Crore
as against the abovestated funds available.
17. I have heard learned counsel for the Official Liquidator.
18. In the case of Meghal Homes (P) Ltd Vs Shree Niwas Girni
K.K. Samiti and Ors., ( 2007) 7 SCC 753, the Supreme Court, inter alia in
Paragraph 31 thereof, has 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".
19. In light of the above, the application is allowed and the respondent
company stands dissolved.
20. The official liquidator is further permitted to close the books of the
accounts of the company and to release the available amount to the secured
creditor i.e. India SME Asset Reconstruction Co. Ltd.
CO.PET. 169/2001
20. In view of the order passed in Co. Appl. 1111/2019, the respondent
company stands dissolved.
21. A copy of this order be given to the Registrar of Companies within a
period of thirty days.
22. Official Liquidator is hereby discharged.
23. The petition stands disposed off accordingly.
JYOTI SINGH, J
OCTOBER 21, 2019
///
