Gujarat High Court
Ol Of M/S Sandeep Texspin Ltd (In Liqn) vs Gujarat Industrial Investment ... on 23 February, 2024
Author: Nirzar S. Desai
Bench: Nirzar S. Desai
NEUTRAL CITATION
C/OLR/115/2021 ORDER DATED: 23/02/2024
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/OFFICIAL LIQUDATOR REPORT NO. 115 of 2021
In R/COMPANY APPLICATION NO. 8 of 2009
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OL OF M/S SANDEEP TEXSPIN LTD (IN LIQN)
Versus
GUJARAT INDUSTRIAL INVESTMENT CORPORATION LTD. & ORS.
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Appearance:
BHOOMI M THAKORE(6237) for the Applicant(s) No. 1
MR AS ASTHAVADI(3698) for the Respondent(s) No. 2
MR DEVANG D TRIVEDI(2503) for the Respondent(s) No. 1
NOTICE SERVED for the Respondent(s) No. 3,4
SERVED BY RPAD (N) for the Respondent(s) No. 5
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CORAM:HONOURABLE MR. JUSTICE NIRZAR S. DESAI
Date : 23/02/2024
ORAL ORDER
1. This Official Liquidator Report is of the year 2021 and despite the service of notice, respondents no. 3, 4 and 5 have chosen not to appear before this Court, the matter was taken up as learned advocate Mr. Shivang Thacker for the applicant is present and learned advocate Mr. Asthavadi and learned advocate Mr. Devang Trivedi for the respondents are present and as they insisted to take up the matter, the matter was taken up.
2. The present report is filed seeking following orders in paragraph No. 18 thereof:
A. That, the Hon'ble Court may be pleased to direct the Page 1 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024 NEUTRAL CITATION C/OLR/115/2021 ORDER DATED: 23/02/2024 undefined Official Liquidator to make the payment to the Employee's Provident Fund Organization of their outstanding dues amounting to Rs. 70,442/- as per Para no. 17 of this report.
B. That, this Hon'ble Court may be pleased to direct the Official Liquidator to disburse amount of Rs. 68,194/- to Workman of Company Application No. 8 of 2009 as mentioned in Para No. 5 & 13 of this report in compliance of Section 529/ 529A of the Companies Act, 1956 through NEFT subject to filing usual undertaking to the Office of Official Liquidator.
C. In view of facts narrated in para 13 & 15, this Hon'ble Court may be pleased to permit the Official Liquidator to disburse the amount under Section 529/529 A of the Companies Act, 1956 to concerned Secured Creditor of the Company in liquidation subject to filing usual undertaking to the Official Liquidator to the effect that if ultimately it is found that any excess amount paid to them, they will refund the same immediately with prevailing rate of interest on the said amount Official Liquidator.
D. That, this Hon'ble Court may be pleased to ratify the action taken by the Official Liquidator for payment of bill of Rs. 21,396/- (inclusive of Service tax) to Navnitlal & Co., Advertising Agency towards bill of Advertisement published in newspaper as per Para No. 6 & 7 of this Page 2 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024 NEUTRAL CITATION C/OLR/115/2021 ORDER DATED: 23/02/2024 undefined report.
E. That, this Hon'ble Court may be pleased to permit the official Liquidator to encash necessary FDR to meet with the requirement of disbursement of the sale proceeds amongst Secured Creditor, worker and Employees Provident Fund Organization.
F. Such other further order and direction as this Hon'ble Court may deem, fit and proper in the matter may also be passed.
3. This Court vide order dated 23.11.2021 partly allowed the prayers made in the report. The relevant para from order dated 23.11.2021 is as under:-
5. In view of the above submissions, this Official Liquidator Report is partly allowed by directing the Official Liquidator to make the payment of the outstanding dues of Rs.
70,442/- to the employees of Provident Fund Organization.
6. The Official Liquidator is further directed to disburse the amount of Rs. 68,194/- to respondent No.5 Hasubhai Mohanbhai Rathod - workman of Company Application No. 8 of 2009 in Compliance of section 529/529A of the Companies Act, 1956 Subject to filing usual undertaking with the office of the Official Liquidator by such workman Page 3 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024 NEUTRAL CITATION C/OLR/115/2021 ORDER DATED: 23/02/2024 undefined within a period of two weeks from today.
8. The Official Liquidator is further permitted to encash the FDR, if required, for making the aforesaid Payment.
9. With regard to further disbursement between the secured creditors, the Official Liquidator is directed to obtain a fresh report from the Chartered Accountant determining the ratio of disbursement out of the funds available in the account of the company (in liquidation).
4. Thereafter, the Official Liquidator has filed further report dated 25.01.2022 placing fresh verification report of M/s. Naimish N. Shah & Co., Chartered Accountants. The details of working ratio for disbursement amongst secured creditor and workman on the available fund is as under:-
Sr. No. Name of secured Ratio in % Payable amount creditor and workman A GIIC 49.61% 1,24,02,500/-
B GSFC 7.89% 19,72,500/-
C BOI (ARCIL) 42.42% 1,06,05,000/-
D Workman 0.08% 20,000/-
Hasubhai
Mohanbhai
Rathod
Total 100.00% 2,50,00,000/-
5. After filing of report dated 25.01.2022, the Official Liquidator has Page 4 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024 NEUTRAL CITATION C/OLR/115/2021 ORDER DATED: 23/02/2024 undefined received letter dated 04.02.2022 from GSFC, who has raised objections for working of ratio for disbursement. Accordingly, the Official Liquidator has forwarded said objections to the Chartered Accountant vide letter dated 18.02.2022 and M/s. Naimish Shah & Co., Chartered Accountants have submitted their further report to the Official Liquidator vide letter dated 22.02.2022.
6. In view of the revised report of Chartered Accountant, the Official Liquidator has filed further report dated 21.03.2022. Paragraphs No. 5 and 6 of the further report read as under :-
"5" A letter dated 04.02.2022 received by office of Official Liquidator from GSFC raised objections, the same was forwarded to M/s. Naimish Shah & Co., Chartered Accountants vide Official Liquidator's letter dated 18.02.2022.
"6" M/s. Naimish N. Shah & Co., Chartered Accountants have submitted their report to the Official Liquidator on verification of claims of the Secured Creditors and Worker and determination of ratio in terms of Section 529A of the Companies Act, 1956 vide letter dated 22.02.2022.
7. This Court orally directed the Official Liquidator to call a meeting to discuss and decide further course of action to finalize the ratio of Disbursement among the Secured Creditors and workers of the company. The Official Liquidator has filed further report dated Page 5 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024 NEUTRAL CITATION C/OLR/115/2021 ORDER DATED: 23/02/2024 undefined 21.07.2022 by placing the outcome of the said meeting.
8. Paragraphs No. 1, 2 and 3 of the further report dated 21.07.2022 read as under:-
"1" That, the Official Liquidator submits that this Hon'ble Court orally direct the Official Liquidator to call a meeting to discuss and decide further course of action to finalize the ratio of Disbursement among the Secured Creditors and Worker under Section 529A of Companies Act, 1956. In this regard, a joint meeting was fixed in the office of the Official Liquidator on 04.05.2022 at 4.30 pm as per Official Liquidator's letter dated 13.04.2022.
"2" That, the Official Liquidator most respectfully submits that, it was decided in the meeting was fixed on 04.05.2022 that the Representative of GSFC, GIIC and ARCIL (Assignee of Bank of India) to provide charge documents, details of calculation and other relevant details etc. directly to the M/s. Naimish N. Shah & Co., Chartered Accountants and copy to office of Official Liquidator within 10 days. Thereafter, the Official Liquidator has requested the Chartered Accountant to submit revised report with revised ratio under Section 529A of the Companies Act, 1956. A copy of minutes dated 04.05.2022 is enclosed herewith and marked as annexure 'B'.Page 6 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024
NEUTRAL CITATION C/OLR/115/2021 ORDER DATED: 23/02/2024 undefined "3" That, the Official Liquidator submits that M/s. Naimish N. Shah & Co., Chartered Accountant have submitted their revised report with revised ratio under Section 529A of the Companies Act, 1956 vide letter dated 21.06.2022. A copy of the report dated 21.06.2022 is enclosed herewith and marked as annexure 'C'.
9. As per Note (iv) of Chartered Accountant's report dated 21.06.2022, the available balance for Distribution with Office of the Official Liquidator is approx. Rs. 2,50,00,000/-. The Chartered Accountant has proposed to distribute the said amount in following ratio :
Sr. No. Name of secured creditor Ratio in % Payable amount
and workman
A GIIC 79.30% 1,98,25,000/-
B GSFC 19.31% 48,27,500/-
C BOI (ARCIL) 1.28% 3,20,000/-
D Workman Hasubhai 0.11% 27,500/-
Mohanbhai Rathod
Total 100.00% 2,50,00,000/-
10.At the time of hearing on 09.02.2024, Mr. Devang D. Trivedi, learned advocate for Respondent No. 1 and Mr. A.S. Asthavadi. Learned advocate for Respondent No. 2 have gave their consent to disburse the amount as per ratio fixed by Chartered Accountant vide report dated 21.06.2022.Page 7 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024
NEUTRAL CITATION C/OLR/115/2021 ORDER DATED: 23/02/2024 undefined
11.In view of above facts, the Official Liquidator is permitted to disburse Rs. 2,50,00,000/- amongst the Secured Creditors and worker of the company in liquidation from the fund available in the company's account as per aforesaid ratio fixed by Chartered Accountant vide his report dated 21.06.2022 under Section 529/529A of the Companies Act, 1956 subject to filing usual undertaking to the Official Liquidator to the effect that if ultimately it is found that any excess amount paid to them, they will refund the same immediately with prevailing rate of interest on the said amount to the Official Liquidator.
12.The Official Liquidator is further permitted to encash the FDR, if required, for making the aforesaid payments.
13.With the aforesaid direction, the present Official Liquidator Report is allowed.
(NIRZAR S. DESAI,J) VARSHA DESAI Page 8 of 8 Downloaded on : Fri Mar 01 21:43:35 IST 2024