Rajasthan High Court - Jaipur
O/L M/S Lok Vikas Finance Corp Ltd vs Lok Vikas Urban Cooperative Bank Ltd on 29 March, 2012
Author: Ajay Rastogi
Bench: Ajay Rastogi
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR. ***
COMPANY APPLICATION NO.161/2010 IN COMPANY MISC. APPLICATION NO.56/2001 IN COMPANY PETITION NO.31/2000 In the matter of Official Liquidator of M/s Lok Vikas Finance Corporation Limited.
DATE OF ORDER : 29/03/2012 HON'BLE MR. JUSTICE AJAY RASTOGI *** Mr.BK Sharma for applicant/OL Mr.Ram Kumar Sharma, for Lok Vikas Urban Cooperative Bank Limited.
Instant company application has been filed by the Official Liquidator u/R.9 of the Company (Court) Rules, 1959 for recalling the order dt.27/01/2003 passed in Company Misc. Application No.56/2001 in Company Petition No.31/2000.
It has been alleged in the application that M/s. Lok Vikas Finance Corporation Limited is a company which was ordered to be wound up by the Court vide order dt.13/04/2011 passed in Company Petition No.31/2000. However, Lok Vias Urban Cooperative Bank was one of the creditors of the company in liquidation. The secured creditor also filed a separate company application No.56/2001 in Company Petition No.31/2000 it was prayed for obtaining permission of the Court to remain outside the winding up proceedings and to realize the dues of the secured creditor while resorting to the provisions of the Rajasthan Cooperative Societies Act.
After hearing counsel for the parties, the Court vide order dt.27/01/2003 passed in Company Application No.56/2001 directed ad-infra:-
1. That sale of the assets is to be affected only after it is valued by the registered valuers;
2. The applicant Bank thereafter to fix the upset price of the assets of the company;
3. The sale of the assets of company is to be undertaken/made after wide notice of invitation of tender/offers in National level as well as State level newspapers having wide circulation;
4. The sale shall be subject to confirmation of the court;
5. The sale proceeds (received of sale of the assets of the company in liquidation) are to be deposited with the Official Liquidator forthwith.
6.After confirmation of sale, the applicant Bank free to file the claim before the Official Liquidator and the Official Liquidator shall adjudicate upon the same in accordance with the law.
After passing of the order dt.27/01/2003 no action was taken by the secured creditor either to take possession of its security from the the Official Liquidator or efforts if any were made to realize the money from the security and at the same time, the Official Liquidator is providing security and was incurring recurring expenses thereon.
It has also been contended by counsel for the Official Liquidator that letter was sent to the authorities concerned regarding the progress if any undertaken by the secured creditor in realizing of its dues by disposing of the security. Document to this effect has also been placed on record.
It has also been contended that secured creditor has not made any efforts for realizing its dues by disposing of the mortgaged property and the Official Liquidator is receiving letters from other claimants for satisfaction of their claims and the OL is not in a position to invite claims from creditors for realization of the assets of the company in liquidation since the major assets value, which may likely to fetch better amount, is the secured asset forming security for the dues of Lok Vilas Urban Cooperative Bank regarding which the Bank has got permission from Court vide order dt. 27/01/2003 referred to above for remaining outside the winding up proceedings.
Counsel for Official Liquidator further submits that since no efforts have been made by the secured creditor for the last 10 years, in such circumstances, the order passed by the Court on 27/01/2003 may be recalled so that the Official Liquidator may proceed with the matter inviting claims and proceed further in accordance with law.
Reply to the company application has been filed on behalf of respondent No.1-Lok Vikas Urban Cooperative Bank Limited through its Administrator and it has been averred that the non-applicant-Bank was brought under liquidation on 11/10/2004 and since then the Administrator has been appointed and after his appointment he has made some efforts but admittedly effective progress has not taken place. A document has come on record in the connected Company Application No.22/2005 in which Additional Registrar, Cooperative Societies, in his letter, addressed to the Registrar, Cooperative Societies dt. 04/08/2011 admits that after the order was passed by the Court on 27/01/2003, Joint Registrar who remains as an Administrator of the Bank. No one has made any efforts to realize the security for one reason or the other.
From the material which has come on record and after taking note of the submissions, this Court is of the opinion that since no efforts have been made by the secured creditor who remain outside the winding up proceedings under the order of the Court dt.27/01/2003 and claims could not have been invited and in these circumstances, this Court considers it appropriate to recall the order dt.27/01/2003 passed in Company Application No.56/2001 in Company Petition No.31/2000.
Consequently the present Company Application stands allowed. The order passed on 27/01/2003 in Company Application No.56/2001 in Company Petition No.31/2000 stands recalled. As informed, the security is in possession of the Official Liquidator who is at liberty to proceed further regarding realization of the assets of the company in liquidation in accordance with law.
[AJAY RASTOGI], J.
Raghu/p.5/161-Company Appli-2010-Final.doc Certificate:-All corrections have been incorporated in the judgment/order being emailed/Raghu,PAJW