Delhi High Court
M/S Hindustan Vegetable Oil ... vs - on 2 March, 2009
Author: Gita Mittal
Bench: Gita Mittal
IN THE HIGH COURT OF DELHI
CA No.1061/2008, 1300/2008, CA Nos.42 & 43/2008 &
C.A. No.3/2009 in Co.P. No.49/2002
Date of decision: 2nd March, 2009
In the matter of
M/s Hindustan Vegetable Oil Corporation Ltd. (HVOC) .. Petitioner
Present: Mr. Naveen Sharma, Advocate with
Mr. B.S. Banthia, Advocate for the Applicant in
CA No.3/2009, 42/2009 & 43/2009.
Mr. Vinay K. Garg, Advocate for Applicant in Co.A.
Nos.1061/2008, 1300/2008.
CORAM:
HON'BLE MS. JUSTICE GITA MITTAL.
1. Whether reporters of local papers may be allowed to see
the Judgment? Yes
2. To be referred to the Reporter or not? Yes
3. Whether the judgment should be reported in the Digest? Yes
+CA No.1061/2008, 1300/2008, CA Nos.42 & 43/2008 & CA
No.3/2009
*
1. By this judgment, I propose to decide Co.A. No.1061/2008 &
C.A. No.1300/2008 filed by the Amritsar Sugar Mills Company
Limited; C.A. No.3/2009 filed by the Hindustan Vegetable Oil
Corporation Limited as well as C.A. Nos.42 & 43 filed by M/s
Pahwa Trading Company, a proprietorship concern through its
constituted attorney Shri Kapil Gupta.
2. CA No.1061/2008 & CA No.1300/2008 have been filed by the
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Amritsar Sugar Mill & Company Limited raising similar questions of
fact and law and as such, they are taken up together for
consideration. The Amritsar Sugar Company Mills Limited has
claimed that it had owned various units/undertakings like the
Amritsar Oil Works; Amritsar Tin Fabricators, plant for collection,
compression and boiling of oxygen gas etc. Its industrial activities
and the activities of its units/undertakings were being carried on
within a triangular area surrounded with high rise boundary walls
on all three sides and also had railway siding. The applicants
submit that the total area in this "triangular area" covered by
Khasra Nos.536, 537, 538, 539, 540, 541 & 542 was about 4.00
acres. Out of this area, about 2.75 acres was occupied by the
Amritsar Oil Works, a unit of the applicant - Amritsar Sugar Mills
which is stated to be situated in one corner of this large
"triangular area".
3. The further submission is that within this triangular area,
apart from the railway siding and the other units, there existed a
road and common room for the Central Excise Inspector which
was being used by all the units/undertakings including the
applicant. The contention of the applicant is that pursuant to the
Amritsar Oil Works (Acquisition & Transfer of Undertakings) Act,
1982 (hereinafter referred to as "Act 50 of 1982"), the Central
Government acquired the Amritsar Oil Works and as a
consequence the assets and liability of Amritsar Oil Works, an
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undertaking of the applicant Amritsar Sugar Mills vested in the
Central Government as per the provisions of the statute. The
applicant contends that it had submitted an inventory of the
property which belonged to the Amritsar Oil Works which binds
the authorities.
4. For the reason that the petitioner was claiming that land
beyond the triangular area has vested in it, the applicant has filed
C.A. No.1061/2008 praying for direction to the applicant
corporation to correct its list of immovable assets, qua the assets
of the erstwhile Amritsar Oil Works and confine the same upto a
part of Khasra Nos.536, 537, 538, 539, 540, 541 & 542 ad
measuring 2.75 acres only. This application was filed on or about
19th September, 2008 when notice was issued to the respondent.
5. Shortly thereafter on 26th November, 2008, C.A. No.1300/2008 was filed by the applicant contending that after the filing of the application by the applicant, the petitioner had started demolishing construction in the entire area beyond what was acquired by Act 50 of 1982 as well as the properties which belong to the applicant. In this background, by way of C.A. No.1300/2008, the applicant has sought an order of restraint against the petitioner corporation from carrying out demolition of and from removing any plant and machinery from the properties of the applicant except to the extent of the immovable assets -3- acquired, i.e. is part of Khasra Nos.536, 537, 538, 539, 540, 541 & 542 ad measuring 2.75 acres only.
6. When C.A. No.1300/2008 came up for hearing on 25th November, 2008 an ex parte ad interim order directing status quo with regard to title, possession and construction on the subject property was directed to be maintained.
7. The application has been contested by the non-applicant who has filed a detailed affidavit on record.
8. C.A. No.3/2009 was filed by the petitioner corporation thereafter praying for vacation of this order of stay dated 25th November, 2008. At about the same time, C.A. No.42/2009 has been filed by M/s Pahwa Trading Company claiming to be an auction purchaser of the subject property praying for impleadment in the proceedings before this court. C.A. No.43/2009 has also been filed by M/s Pahwa Trading Corporation praying for vacation of the order dated 25th November, 2008.
9. It appears that an e-auction was conducted of the old machinery of the HVOC by the MSTC Limited on 14th October, 2008. The bid of the applicant for a total value of Rs.5,76,01,125/- was accepted. The applicant made earnest money deposit of Rs.25,00,000/- and has thereafter paid three further amounts of -4- Rs.20,13,531/-, Rs.4,91,87,469/- & Rs.64,00,125/- inclusive of VET and EMD. The applicant has claimed that it had deposited a total amount of Rs.6.00 crores and that the liquidator appointed by this court has already issued a stay order with respect to the property in favour of the applicant. The applicant has placed before this court a copy of the agreement dated 23rd September, 2008 and sale order dated 15th October, 2008. It has been urged by the applicant that the plant and machinery purchased and paid for by it is really junk in nature and the Pahwa Trading Company be permitted to remove the same.
10. A copy of the letter dated 23rd December, 2008 addressed by it to the liquidator wherein, apart from other claims made by the Pahwa Trading Company has claimed an amount of Rs.10,00,000/- towards the cutting expenditure and other miscellaneous labour works already undertaken by it.
11. Learned counsel have been heard on all these applications.
12. Mr. Naveen Sharma, learned counsel appearing for the petitioner and the auction purchaser has urged that there was no separate firm or company or legal entity in the Amritsar Sugar Mills Limited at its oil works at Amritsar. The oil works required and appears to be maintaining a set up for the purposes of providing containers for storing the oil which it was -5- manufacturing. It is urged that the entire assets were part of oil works owned by the Amritsar Sugar Mills Ltd.
13. The Amritsar Sugar Mill Company Limited was a company incorporated with the registered office at G.T. Road, Amritsar. It is stated to have filed its last balance sheet and profit and loss statement for the year ending 31st October, 1971 showing a net loss of Rs.10,79,756.75 paise. This company was having only three businesses - a vanaspati factory at Amritsar, a sugar factory at Rahona and a cotton ginning and pressing factory at Patoki, Pakistan.
14. The last balance sheet which has been placed before this court by the liquidator of the company. As per the schedule of fixed assets and annexures forming part of the balance sheet as on 31st October, 1971, the fixed assets of the company at Amritsar were known as the Amritsar Oil Works. Some machinery and other apparatus is reflected against it in the balance sheet.
15. It is not disputed by the parties that by a notification dated 13th September, 1974, issued by the Ministry of Industrial Development in exercise of powers conferred by sub-section 1 of Section 18AA of the Industries (Development and Regularisation) Act, 1951, the Central Government look over the management of the Amritsar Oil Works, a factory of the industrial undertaking -6- known as the Amritsar Sugar Mills Company Limited at Amritsar, which had been engaged in the manufacturing of vanaspati, on the ground that it had stood closed for a period of not less than three months. The Government was of the view that such closure was prejudicial to the vanaspati industry which was a scheduled industry and further that the financial condition of the company owning the said industrial undertaking and condition of the plant and machinery was such that it was not possible to re-start the factory. It was further of the view that such re-starting was not necessary in the interest of general public. In this backgorund, the Central Government appointed a Board of management to take over the management of the industrial undertaking relating to the said factory.
16. After coming into force of the said Act, the Central Government formed the Hindustan Vegetable Oil Corporation (hereinafter referred to as "HVOC" for brevity) on the 23rd April, 1984. Amongst others, all properties of the Amritsar Sugar Mills which was running its business as Amritsar Oil Works at Amritsar stood transferred to Hindustan Vegetable Oil Corporation.
17. All assets of the Amritsar Oil Works and of Ganesh Flour Mills were transferred to the HVOC by the Central Government. It prepared the first balance sheet of HVOC of Amritsar Unit on 31st March, 1985 reflecting all its fixed assets including the land -7- admeasuring about 30 acres. The entries in the register in this behalf were made on 22nd April, 1984 and the value of such land was reflected at Rs.53,411.00.
18. Prior thereto, the Government company repaid the debt of the Amritsr Oil Works owed to the State Bank of India for a period prior to 1994 to the tune of Rs.1.13 crores and upon discharge of this debt owed by it to banker, the HVOC was able to obtain redemption of the mortgage of the said land with the bank.
19. Title deeds of the said land were obtained by the corporation only upon making such payment to the State Bank of India.
20. No protest was lodged by the applicant when this amount was paid. It also did not assert any right, title or interest in the land, plant or machinery which had been taken over by the HVOC.
21. The Central Government also prepared the first balance sheet of the company after the take over on 31st March, 1975. The balance sheet recorded the fixed assets of the Amritsar Oil Works and land which was valued at Rs.53,411.00. The original Fixed Assets Register in this behalf has been placed before this court. It is recorded by the Central Government that the balance sheet for the years 1972-73 & 1973-74 was not available. The Fixed Assets Register which was produced reflects -8- that the entire land, plant and machinery on the premises of the Amritsar Sugar Mills housing its oil manufacturing was one and therefore, there was no separate or other firm or legal entity at such premises.
22. It is stated by learned counsel representing the liquidator and the Government that a similar balance sheet at the time of taking over of the works of Amritsar Oil Work had been prepared where the land value of the work has been reflected as Rs.53,411.00.
23. It is also an undisputed fact that no challenge has been laid by the applicant - Amritsar Sugar Mills Ltd. to the take over of the management as well as of land, plant and machinery by the Central Government or any part thereof. The government is in its possession and control thereof since 13th September, 1974 without any objection till the filling of CA No.1061/2008. There is no challenge also to the notification of the same date by the applicant.
24. The take over of the management was followed by a second notification dated 20th October, 1982 issued by the Central Government for the acquisition and transfer of right, title and interest of the undertakings of the Amritsar Sugar Mills Company in relation to its oil works with a view to sustaining and -9- strengthening the nucleus of public owned or controlled units required for ensuring supply of wholesome vanaspati and edible oil to the public. The notification in its recitals notices that the "Amritsar Sugar Mills Company has through its undertakings namely the factory known as Amritsar Oil Works, Amritsar was engaged in the manufacture and production of certain commodities namely vanaspati and refined edible oil which was essential to the needs of the community".
25. Inherent therein is the position that the business at Amritsar owned by the Amritsar Sugar Mills Company was known as the Amritsar Oil Works. There is no mention to be found to the Amritsar Tin Works in the notification or any records. It is also not recognised as a separate or independent undertaking or division. The notification stood issued by an Act of Parliament which came into effect on 19th October, 1982.
26. There is nothing on record to manifest or establish that such tin works even existed as a legally recognised entity, having a business of its own. There is certainly nothing to indicate that it owned or had right, title or interest in either real estate or plant & machinery.
27. This is implicit even in the definition of Amritsar Oil Works as defined in sub-section 8 of Section 2 of the acquiring statute. So
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far as the date of taking over was concerned, it was stated in the sub-section (c) of Section 2 that this would be the date on which the management of the Amritsar Oil Works of the Amritsar Sugar Mills Company was taken over by the board of management by virtue of the notification of Government of India in the Ministry of Industrial Development dated 13th September, 1974.
28. It is undisputed that the Central Government had to take over the management of the entire unit which was perceived to be the unit of the Amritsar Sugar Mills Company Limited at Amritsar immediately on the issuance of the notification. As noticed above, this company was the only legal entity which was engaged in the business of ginning press in Pakistan, sugar at Rohana and oil/vanaspati at Amritsar. The company had never asserted that it had any business in tin.
29. It is an admitted position that the management stood taken over since 1974 and that the Central Government was in possession of the entire property at Amritsar Oil Works factory ever since.
30. The learned counsel for the Liquidator has pointed out that vide order dated 28th March, 1987, the Competent Authority sanctioned mutation of land admeasuring 154 kanals 11 meters by way of mutation no.2452 in favour of the Corporation.
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31. This order of mutation was assailed by the Amritsar Sugar Mills Company Limited by way of an appeal before the Deputy Commissioner. By an order passed on 29th May, 2001, the Deputy Commissioner directed the parties to await the finding of the Civil Court/High Court as in the meantime, a suit stood filed by certain workers.
32. The liquidator has relied on a second mutation order dated 28th October, 1993 being mutation no.3971 whereby the Assistant Collector First Grade, SDM directed mutation in respect of the land admeasuring approximately 10 acres in favour of HVOC. This order was also assailed by the Amritsar Sugar Mills Company Limited by an appeal before the Collector. The order of mutation was set aside by the Collector by an order passed on 25th October, 1994 and the matter was remanded to the Assistant Collector. On consideration on remand, the Assistant Collector 1st grade reiterated the earlier order of mutation by an order passed on 30 th March, 1995 in favour of the HVOC. The appeal filed by Amritsar Sugar Mills Company Limited assailing this order was allowed by the collector on 12th December, 1995. The HVOC challenged the order passed by the collector before the commissioner who vide order dated 18th December, 2001, sanctioned mutation no.3971 in favour of HVOC.
33. The order of the Commissioner dated 18th December, 2001
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has been challenged by the Amritsar Sugar Mills Company Limited before the Financial Commissioner in respect of 10 acres of land.
34. So far as the mutation directed by the order dated 29 th March, 1987 in respect of 20 acres of land is concerned, in view of the finality attained by the civil litigation, the same has also attained finality and binds the parties. There is, therefore, no dispute with regard to the mutation in favour of the HVOC in respect of 20 acres of land.
35. It is necessary to also notice the civil litigation which has been adverted to by the revenue authorities and has been referred to by both parties. In the year 1996, it appears that the Amritsar Sugar Mills Company Limited filed a suit for injunction being Case No.100/29-5-96 in the court of Civil Judge/Senior Division. The suit has been filed in respect of 240 kanals, 13 marla equivalent to approximately 30 acres of land which the Amritsar Sugar Mills Company Limited is stated to have developed in Amritsar which is the subject matter of present consideration. The plaintiff in this case had set up a case that the Amritsar Oil Works is located within a small part of triangular area which is surrounded by three walls adjacent to a railway line which runs from Amritsar to Itari. It is stated in para 7 that the triangular area is situated in a corner of the Amritsar Sugar Mills estate only. It was the plaintiff's case that it has various industrial units
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including the Amritsar Tin Fabricator inside the triangular area.
36. This plaint was filed in May, 1996. It is noteworthy that apart from a reference to Amritsar Oil Works and a vague reference to Amritsar Tin Fabricator, there is no reference to any other industrial unit. The plaintiff also does not set out the legal status of the Amritsar Tin Fabricator as a legal entity. Not an iota of documentary evidence is placed to state that it was carrying on any business as an independent legal entity or person. On the contrary, it is an admitted position that the tin fabricator maintained no independent balance sheet. No particulars of any persons employed by it are forthcoming.
37. The plaint admits that there is only one main entrance gate which leads to the triangular area. There is no demarcation or distinction drawn between the assets of the Amritsar Oil Works vis a vis any other industrial unit. It also does not disclose any delineation of area between any separate industrial unit(s) or separation of location. The HVOC was arrayed as a defendant and a prayer was made for grant of a decree for permanent injunction restraining the respondent from interfering or making hindrance in the peaceful enjoyment of the plaintiff's rights of ownership, possession and operation of the tin plant, styled as Amritsar Tin Fabricators, shown in green colour located in the triangular area.
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38. The suit was contested by the defendant and a detailed written statement was filed pointing out that the defendant company was in possession of the entire land of the Amritsar Sugar Mills Company Limited and that the Amritsar Oil Works was the only business being carried on by this company on the subject land. The HVOC had also stated that it was in possession since the date of issuance of notification. A challenge was also made to the locus standi of the Amritsar Sugar Mills Company Limited to file the suit.
39. The plaintiff failed to produce any evidence in support of its case before the trial court and the suit was dismissed under Rule 8 of Order IX of the Code of Civil Procedure on 16 th February, 1999 by the Civil Judge, Senior Division, Amritsar.
40. The applicant Amritsar Sugar Mills Company Limited has neither sought setting aside nor restoration of the said suit. The order of dismissal has also not been assailed by way of any other remedy before a higher court. As such the dismissal of the suit has also attained finality.
41. It now becomes necessary to refer to a second suit being RBT Civil No.362/1991 entitled Gurdeep Singh & Others Vs. Hindustan Vegetable Oil Corporation & the Amritsar Sugar Company Limited. This suit was filed by the 49 persons claiming to be
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workmen of the Amritsar Sugar Mills Company Limited. The plaintiffs claimed to be employees of the HVOC after the business of the Amritsar Oil Works was nationalised by the notification dated 20th October, 1982 and its name was changed to Hindustan Vegetable Oil Corporation. They sought a declaration and permanent injunction against dispossession from the portion of property.
42. This suit was contested by both the defendants. The Amritsar Sugar Mill Company Limited not only filed its written statement but also filed a counter claim wherein the Amritsar Sugar Mills Company Limited prayed for a decree for mandatory Injunction ordering the parties to deliver the vacant possession of property as per plan annexure `A' & `B' shown in green and yellow color excepting red, over which they claim possession wrongfully, though, they are not owners and even of its various parts. This counter claim was withdrawn on 23rd of January, 2008 on a statement made by the counsel for the Amritsar Sugar Mills Company Limited.
No steps for recovery of possession, if the plaintiff was actually wrongfully dispossessed were undertaken.
43. Mr. Naveen Sharma, learned counsel for the petitioner and the auction purchaser has drawn my attention to the issues which were framed in this suit, on the counter claim filed by the Amritsar
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Sugar Company Limited, defendant no.2. The issue no.4 framed was as to whether the company was entitled to the relief of mandatory injunction while issue no.5 was framed on the objection that the counter claim was not maintainable. It is pointed out by Mr. Vinay Garg, learned counsel appearing for the Amritsar Sugar Mill Company Limited that even though the counter claim stood withdrawn on 23rd January, 2008, the trial court has given a finding in paras 17-18 of its judgment dated 27th February, 2008 that this company was not entitled to the relief of mandatory injunction and has also held that the counter claim is not maintainable.
44. Perusal of the judgment would show that the trial court has noticed that the counter claim stood withdrawn by an order dated 23rd January, 2008 and for this reason, it has not recorded any discussion on merits of the case. It has merely noted that the defendant no.2 would not be entitled to the relief of mandatory injunction as prayed for by it by its counter claim. Certainly, there is no adjudication on the merits of the counter claim of the applicant.
45. It appears that a reference was made by the Hindustan Vegetable Oil Corporation before the Board of Industrial & Financial Reconstruction which was registered as case no.502/1999. After detailed consideration of the entire matter by
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an order passed on 7th December, 2001, the BIFR recorded a prima facie opinion that the Hindustan Vegetable Oil Corporation Limited was a sick industrial company and was not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof, was not likely to become viable in future. The BIFR, therefore recommended that it was just, equitable and in the public interest that it should be wound up under Section 20(1) of the Act.
46. On receipt of these recommendations, this court issued notice by an order passed on 4th February, 2002 to all concerned persons. An affidavit was filed by HVOC before this court which was considered on 28th September, 2006. It appears that an amount of Rs.6.83 crores excluding interest was due and payable to customers, sundry debtors and others by the HVOC. The affidavit further discloses that an amount of Rs.220.98 crores including interest is due and payable by the Amritsar Sugar Mills Limited to the Government of India and other statutory authorities. The Government of India has stated that it has no objection to the winding up of the HVOC Unit and sale of the plant and other movable assets of the HVOC except the Breakfast unit. Permission was sought by the Government of India for appointment of a senior and responsible officer of the Government/HVOC/another PSU to work as liquidator for selling
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the movable property. The court, accordingly, permitted the Government to appoint such liquidator and also directed valuation to be done of the property by a government approved valuer.
47. The Government of India has placed the valuation report along with the affidavit dated 4th May, 2007 of the Managing Director of HVOC on record. It was also pointed out that Mr. B.S. Mohapatra, Chief General Manager (Finance), Food Corporation of India was appointed as the liquidator of the company for a limited purpose of taking charge of the movable assets including plant and machinery of the company and to dispose of the same. This valuation report was accepted by this court.
48. It has been submitted that claims were invited from the creditors by a public notice dated 20th November, 2008 issued in all editions of the Times of India by the Liquidator.
49. M/s Amritsar Sugar Mills Company Limited has claimed that it had submitted a list and inventory dated 26th March, 1983 of the articles of the Amritsar Tin Fabricators to the Government of India. The submission is that the same was not challenged by the Government.
50. As against this, Mr. Naveen Sharma, learned counsel has pointed out that the management of the plant stood taken over on
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13th September, 1974 and was in the control and possession of the Government of the entire unit at Amritsar without even a semblance of protest by the applicant Amritsar Sugar Mill Corporation Limited. This inventory claimed to have been filed on 26th March, 1983, nine years thereafter, is an after thought and of no consequence. The plea is not supported by any pleadings or document that any land or plant or machinery was owned by any tin works or any person. The mere filing of the inventory without anything more, by itself would not further the claim of the applicant. The inventory is not admitted by the HVOC or the liquidator. The application does not claim any independent industrial activity of tin works. The Amritsar Sugar Mills Limited has referred to it as a unit/undertaking. It has never asserted that it had any business other than sugar, oil mill or ginning. There is, therefore, substance in the contentions of HVOC. It was merely one section of the complete operations of the manufacture and distribution of vanaspati oil which was undertaken by Amritsar Sugar Mills Limited at its oil works at Amritsar.
51. For the same reason, it is asserted that reliance on Section 11 of the Amritsar Oil Works (Acquisition & Transfer of Undertakings) Act, 1982 does not further the case of applicant in any manner. It is further pointed out that this statutory provision has been incorporated for facilitating removal of any difficulty with regard to the provisions of this enactment. The same does not
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enable drawing of a presumption of correctness to any inventory which may be filed by a party.
52. The filing of the inventory in the year 1983 does not point out any difficulty in giving effect to the provisions of the statute and for this reason, Section 11 has no bearing on the issues raised by the applicant.
53. Learned counsel for the applicant has placed reliance on several pronouncements reported at JT 1996 (9) S.C. 208 State of Himachal Pradesh Vs. Sh. Keshav Ram & Ors.; (1996) 11 Supreme Court Cases 257 State of H.P. Vs. Keshav Ram & Ors.; ((1996) 11 SCC 259 Malwa Oil Mills & Anr. Vs. State of M.P. & Others; (2008) 8 SCC 12 Faqruddin (Dead) Through LRs Vs. Tajuddin (Dead) Through LRs.; (2008) 8 SCC 31 State of Uttar Pradesh & Anr. Vs. Nitin Agnihotri & Anr. & 2008 (1) SCALE 60 Rajinder Singh Vs. State of Jammu & Kashmir & Ors. in support of the proposition that the mutation in favour of the Hindustan Vegetable Oils Mills Company Limited does not confer any right, title and interest in the subject land in favour of the company.
There can be no dispute with the well settled principle of law laid down herein that revenue entries are intended only for fiscal purposes and cannot be utilised to establish a claim of title in immovable property.
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54. In the instant case, the non-applicant is seeking to derive title not by the orders of mutation in favour of the Hindustan Vegetable Oil Corporation but upon the statutory enactment whereby, first the management of the company, and then, all assets of the company at Amritsar Oil Work statutory vested in the Government. The Amritsar Sugar Mills Limited has not been able to show on record that it was engaged in anything other than sugar, oil or ginning.
55. There can equally be no dispute with the proposition urged by Mr. Vinay Garg, learned counsel on behalf of the applicant - Amritsar Sugar Mill Company Limited that a weakness in the applicant's case cannot be utilized to strengthen the case of the respondent. Reliance has been placed by learned counsel for this proposition on the judgment reported at (2007) 6 SCC 737 Ramachandra Sakharam Mahajan Vs. Damodar Trimbak Tanksale (Dead) and Ors. to the effect that the rights of the company and the liquidator have to be tested independent of scrutiny of the case set up by the applicant.
56. Mr. Vinay Garg, learned counsel appearing for the applicant has submitted that the liquidator had stated that land admeasuring 15 acres only formed part of the Amritsar Oil Works at Amritsar. My attention is drawn to the affidavit dated 8th September, 2006 of the Government of India and another affidavit
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of the Government of India (at page 140) wherein such reference is contained.
57. It has been submitted by learned counsel for the liquidator that this has been erroneously stated and is not supported by the records of the Official Liquidator duly maintained in due course of business. In this behalf, my attention is drawn to the fixed asset register which records on 22nd April, 1984 that the land of the company measures approximately 30 acres. Furthermore, the note also contains reference to the plant and machinery and the factory.
58. I am, therefore, inclined to accept the contention that the reference to the land admeasuring 15 acres was by way of a mistake. The applicant has also referred to land admeasuring 30 acres filed in all pleadings in the civil litigation as well as revenue records. The order of mutation refers to 30 acres of land and not 15 acres. The applicant has also argued that oil works was confined to 2.75 acres and not 15 acres. However, the documents on record show that there was only one factory building and premises at Amritsar & one main gate, suggesting one industry.
59. It is important to note that 35 years have passed since 13th of September, 1974 since the management was taken over by the Central Government. The acquisition and statutory vesting was
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also completed in 1982. The property thus is out of possession of Amritsar Sugar Mills Limited for more than 25 years which has not lodged even a protest let alone made a claim to any portion of this property.
60. The Amritsar Sugar Mill Limited has filed this application long after the e-auction conducted by the MSTC Limited. No particulars or details of the location of the claimed units have been mentioned which could indicate any independence of identity.
61. In this background, Co.A. No.1061/2008 and Co.A. No.1300/2008 are found to be totally devoid of merit and are hereby dismissed with costs of Rs.25,000/- each. The costs shall be deposited in the account of the company M/s Hindustan Vegetable Oil Corporation maintained by the liquidator, within four weeks from today.
62. Co.A. No.42/2008 (for impleadment) is found to be without merit. The applicant is neither necessary nor a proper party for the purposes of consideration of the issues raised in the present case.
However, so far as the properties which have been put to auction are concerned, no orders in relation thereto shall be passed without hearing the applicant.
CA No.42/2008 is dismissed.
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63. So far as Co.A. No.3/2009 is concerned, I find that the liquidator has proceeded in the matter without having taken approval of the court on the valuation report. I am also unable to find any order permitting the liquidator to proceed to sell the property of the company under liquidation, even though I am vacating the stay which was granted at the instance of the Amritsar Sugar Mills Limited on 25th November, 2008.
64. In view of the order passed above, Co.A. No.3/2009 stands allowed. It is, however, made clear that this court has not approved the e-auction or the sale which requires to be independently examined.
65. It is, therefore, directed that the liquidator as well as M/s Pahwa Trading Company and Mr. Kamal Gupta shall maintain status quo with regard to the title, possession and construction on the movable and immovable properties taken over from the Amritsar Sugar Mills Limited at Amritsar till further orders of this court.
March 2nd , 2009 GITA MITTAL, J
aa
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