Gujarat High Court
Official Liquidator Of M/S. Hindustan ... vs Canara Bank, Asset Recovery Management ... on 5 December, 2018
Author: R.M.Chhaya
Bench: R.M.Chhaya
C/OLR/103/2018 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/OFFICIAL LIQUDATOR REPORT NO. 103 of 2018
In
COMPANY PETITION NO. 81 of 2005
With
R/COMPANY APPLICATION NO. 22 of 2018
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OFFICIAL LIQUIDATOR OF M/S. HINDUSTAN COTEX EXPORTS LTD.
Versus
CANARA BANK, ASSET RECOVERY MANAGEMENT BRANCH
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Appearance:
MS REETA CHANDARANA(3023) for the PETITIONER(s) No. 1
OFFICIAL LIQUIDATOR(16) for the PETITIONER(s) No. 1
MR SIDDHARTHA SAMAL(3089) for the RESPONDENT(s) No. 1
MRS NISHA M PARIKH(2397) for the RESPONDENT(s) No. 1
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CORAM: HONOURABLE MR.JUSTICE R.M.CHHAYA
Date : 05/12/2018
COMMON ORAL ORDER
1. The Official Liquidator Report as well as Company Application relate to the same Company in liquidation and interwoven prayers are prayed for and therefore, the report as well as the application both are heard together and are disposed of by this common order.
2. The petitioner of Official Liquidator Report no.103 of 2018 has prayed as under: "(A) This Hon'ble Court may be pleased to permit the Official Liquidator to pay an amount of Rs.18,93,979/ to respondent i.e. Page 1 of 7 C/OLR/103/2018 ORDER Canara Bank towards expenses already incurred by them out of the fund available in the Company's account as stated at para11 hereinabove.
(B) This Hon'ble Court may be pleased to permit the Official
Liquidator to disburse an amount of Rs.1,71,98,233/ to the Canara Bank, respondent as full and final settlement of amount against their respective claims as per the ratio determined by the Chartered Accountants upon receipt of usual undertaking from the Canara Bank, Secured Creditor to return the excess amount, if any will be refunded.
(C) This Hon'ble Court may be pleased to permit the Official Liquidator to pay advertisement bill of Rs.80,576/ to Global Network Advertising out of the fund available in the Company's account as stated at Paragraph 11 hereinabove.
(D) This Hon'ble Court may be pleased to permit the Official Liquidator to invite claim from Preferential Creditors, Unsecured Creditors, all other classes of creditors including shareholders/
contributors, etc. under Section 530 of the Companies Act, 1956 by publishing advertisement in "Gujarat Samachar" (Gujarati script) and "Indian Express" (English script) both in Ahmedabad edition and also permit the Official Liquidator to appoint panel Chartered Accountants for examination and verification of claim of creditors, shareholder, contributor etc. of the Company in liquidation.
Page 2 of 7 C/OLR/103/2018 ORDER(E) ... ... ..."
3. The facts as narrated in Official Liquidator Report no.103 of 2018 is taken as basis of this order.
4. Heard Ms. Reeta Chandarana, learned advocate for the Official Liquidator and Mr. Siddhartha Samal, learned advocate for the respondent.
5. The learned advocates appearing for the respective parties have taken this Court through the factual matrix arising out of these proceedings. Record indicates that Company Application no.81 of 2005 was filed by one Dilip Motwani against the Company in liquidation, named, Hindustan Cotex Exports Ltd. Record indicates that the Official Liquidator attached to this Court was appointed as provisional liquidator as per the order dated 20.12.2005 and ultimately, by an order dated 28.2.2006, this Court (Coram: M.R. Shah, J. as he then was) was pleased to allow the petition and the Company was ordered to be wound up and the Official Liquidator attached to this Court who was earlier appointed as provisional liquidator, came to be appointed as Official Liquidator of the respondent Company. The Official Liquidator, as per the Page 3 of 7 C/OLR/103/2018 ORDER directions issued by this Court, took possession of the movable as well as immovable properties of the Company in liquidation. As the record indicates, the Company in liquidation had leasehold land approximately 7821 sq. mtrs., being plots no.167 to 170 and 183 to 186 of GIDC Industrial Estate, Opp. Durga Industrial Estate, Nr. Karan Barrel Factory, Hansalpur, Taluka Viramgam, District Ahmedabad. The said property came to be disposed of in favour of M/s. Rubber King Tyre Pvt. Ltd. for total sale consideration of Rs.2,43,00,000/, which came to be confirmed by this Court (Coram: C.L. Soni, J.) vide order dated 9.5.2018 passed in Official Liquidator Report no.49 of 2018. The said purchaser has paid the sale consideration and the funds are lying with the Official Liquidator.
6. The Official Liquidator thereafter approached this Court for seeking permission to invite claims from the Secured Creditors and workers of the Company in liquidation under Sections 529 and 529A of the Companies Act, 1956 (hereinafter referred to as "the Act"). The said Official Liquidator Report no.55 of 2018 was allowed by this Court vide order dated 26.6.2018. As per the said order, the Official Liquidator gave advertisement in Gujarat Page 4 of 7 C/OLR/103/2018 ORDER Samachar, Gujarati daily and Indian Express, English daily, on 18.7.2018. In response to the said advertisement, the respondent herein i.e. the applicant of Company Application no.22 of 2018 lodged his claim which was ultimately sent by the Official Liquidator to Chartered Accountants - Shah Dinesh Dahyalal and Associates for verification. The Chartered Accountant, by its report dated 18.9.2018 has verified the claim raised by the respondent herein and has opined that the respondent- Canara Bank is entitled to receive an amount of Rs.1,71,98,233/. It is also pertinent to note that the respondent - Canara Bank has also incurred expenses of Rs.18,93,979/ towards security expenses, valuation charges, advertisement charges, etc. which is required to be reimbursed to the respondent. The Official Liquidator has also brought on record the fact that as on date, the funds of the Company in liquidation is to the tune of Rs.2,42,42,735/ and has therefore filed this report with the prayers mentioned hereinabove.
7. Mr. Siddhartha Samal, learned advocate for the respondent - Canara Bank-Secured Creditor has invited attention of this Court to the affidavit filed by the respondent - Bank dated 30.11.2018 and has contended that the amount of Rs.1,71,98,233/ as determined by the Page 5 of 7 C/OLR/103/2018 ORDER Chartered Accountants be disbursed in favour of the respondent - Bank as provided under Section 529A of the Act as full and final amount along with the additional amount of Rs.18,93,979/ towards reimbursement of security charges, etc. and the respondent may be permitted to claim additional amount under Section 530 of the Act.
8. Having heard the learned advocates appearing for the respective parties and on the basis of the factual matrix as narrated hereinabove, the report deserves to be accepted as prayed for. The Official Liquidator is permitted to reimburse the amount of Rs.18,93,979/ to the respondent - Canara Bank towards expenses already incurred by them from the funds available in the Company's account. The Official Liquidator is also permitted to disburse the amount of Rs.1,71,98,233/ as per the Chartered Accountant's report in favour of the respondent - Canara Bank on its filing usual undertaking. The Official Liquidator is further permitted to make payment of Rs.80,576/ to Global Network Advertising agency out of the fund available from the Company's account towards invoices of the advertisement bills raised by the advertising agency. The Official Liquidator is also permitted to invite claims from the Page 6 of 7 C/OLR/103/2018 ORDER preferential creditors, Unsecured Creditors, all other classes of creditors including shareholders/contributors, etc. under Section 530 of the Act and has further permitted to publish the advertisement in Gujarat Samachar, Gujarati daily and Indian Express, English daily, both Ahmedabad editions and on receipt of any such claim under Section 530 of the Act, the Official Liquidator is also further permitted to appoint Chartered Accountant for verification of such claims, if any, received by the Official Liquidator. The report is thus accepted in the above terms. The aforesaid order shall also apply to Company Application no.22 of 2018.
9. Accordingly, the Official Liquidator Report as well as the Company Application both stand disposed of.
(R.M.CHHAYA, J) MAULIK R. PANDYA Page 7 of 7