Bombay High Court
Official Liquidator Of Reflection ... vs H.K. Merchandise Private Limited (In ... on 10 December, 2020
Author: Madhav J. Jamdar
Bench: Madhav J. Jamdar
Digitally signed
by Hemant C.
Hemant Shiv
Date:
C. Shiv 2020.12.14
13:01:36
+0530 1/6 2. olr .117.20 in cp.89.2016.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
OFFICIAL LIQUIDATOR'S REPORT NO. 117 OF 2020
IN
COMPANY PETITION NO. 89 OF 2016
Reflection Promotions Pvt. Ltd.
(in liquidation) ... Official Liquidator
V/s.
H. K. Merchandise Pvt. Ltd. ... Petitioner
......
Mr. Mahendhar Aithe, Company Prosecutor for Official Liquidator.
......
CORAM : MADHAV J. JAMDAR, J.
DATE: :10th DECEMBER, 2020.
(THROUGH VIDEO CONFERENCING) P.C:-
1. Mr. Mahendhar Aithe states that in this O. L. Report following reliefs are sought:-
"(a) In view of the para 7 of this report, whether this Hon'ble Court would be pleased to ratify the action of appointment of Business & Industrial Consultants, Valuer for the purpose of preparing inventory and valuation of the moveable assets of the company (In Liqn) lying at flat No. 304, 3 rd floor, Avenue B-1, Building No. 15, type 2, Agarwal Lifestyle, Global City, Dongre, Virar (W), Palgar and permit the Official Liquidator to pay the valuation charges to the valuer out of the sale proceeds of said moveables and to pay the same to the valuer as per the norms after deduction of TDS applicable as per rules.
(b) In view of para 8 of this report, whether this Hon'ble Court would be pleased to peruse the valuation report and fix the reserve price and EMD in respect of the moveable assets lying at Flat No. 304, 3rd floor, Avenue B-1, Building No. 15, type 2, Agarwal Lifestyle, Global City, Dongre, Virar (W), Palgar.
(c) In view of Para 9 above, whether this Hon'ble Court may Sonali 2/6 2. olr .117.20 in cp.89.2016.doc be pleased to approve the Terms and Conditions of Sale, and Sale Notice of moveable annexed as marked as Exhibit 'A' and 'B'.
(d) In view of para 9 above, whether this Hon'ble Court may kindly dispense with requirements of Rule 276 of the Companies (Court) Rules, 1959 to save the likely expenses since, as per Official Liquidator opinion, moveable assets are not of high value and also permit the Official Liquidator by pasting the sale notice on the notice Board of this Hon'ble Court and the office of the Official Liquidator and also by uploading the sale notice on the Websites of this Hon'ble Court, Official Liquidator and Ministry of Corporate Affairs on usual Terms and Conditions of sale subject to confirmation of sale by this Hon'ble Court."
2. The Official Liquidator placed before the Court the valuation report of Business and Industrial Consultants, valuer appointed by the Official Liquidator and seeking ratification of his action of appointment of Business and Industrial Consultants as valuer and seeking certain further reliefs.
3. I have perused the valuation report prepared by the Business and Industrial Consultants (hereinafter referred to as "the Valuer"). The valuation report shows that very meagre amounts are shown as valuation regarding various items about which valuation is made. Although it is true that various items are movable properties like dining table, showcase, wooden storage cabinet, teapoy, revolving chair, wooden side table, wooden filing cabinet, double bed with mattress, three sitting sofa etc., however, very meagre amounts are shown as valuation. It is significant to note that for teapoy only Rs. 100 is shown as valuation, for wooden side table with two drawers Rs. 200 is shown as valuation, Glass Product Display Showcase Rs.
Sonali 3/6 2. olr .117.20 in cp.89.2016.doc 200 is shown as valuation and for wooden filing cabinet with three compartment Rs.300 is shown as valuation.
4. The photographs of these items are annexed to the valuation report. A bare perusal of the said photographs makes, it very clear that valuer has valued the same at very meagre amount. The representative of the Official Liquidator, Mr. Aithe also states that very meagre amounts are shown as valuation. For the purpose of ready reference photographs of various items alongwith the valuation and description of the respective items are set out hereinbelow:-
Sr. Description Photo Valuation
No. (in Rs.)
1. M.S Dining table with glass 1500
top along with Four M. S
dining chairs size L-3'9"
XW-2'4" XH-2'6"
2. Glass Product Display 200
Showcase size H-5'7" XW-
1'8" XL-1"20"
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3. Wooden Storage Cabinet 500
with 3 drawers & 3
compartment with glass top
size L-5'8 XW1"XH1 8"
4. Teapoy (M.S. Central Table 100
with glass Top) L-2'10"XW-
1'2"x H-1'50"
5. Revolving Chair with High 2000
Back
6. Wooden Side Table with 200
Two Drawers L-1'5" XW-
1'3" XH-1'4"
7. Wooden Filing Cabinet with 300
three compartment with
door size L-3' 80" XW-1'2"
X 4' 60"
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8. M. S. Double bed with 1500
mattress size L-6'XW-
4'7"XH-1' 4"
9. One three sitting Sofa 1000
10. Hoverlab make Standard 2500
Compound light
Microscope
5. It is true that valuation is of movable properties and all the items are household and old items. However, the manner in which the valuer has proceeded and fixed the valuation clearly shows that he has not properly taken relevant aspects into consideration and taken into consideration totally irrelevant aspects. It is also important to note that the valuer has specifically stated that entire furniture is in satisfactory condition. The valuer in his report has stated that as it is difficult to find suitable buyer for the aforesaid items, salvage/scrap value of the furniture is mentioned as the valuation. It is admitted position that yet these items are not put to auction and therefore, there is no basis for the assumption of the Sonali 6/6 2. olr .117.20 in cp.89.2016.doc valuer that it will be very difficult to find buyer for the aforesaid items.
6. The Official Liquidator acts as trustee of company in liquidation and its assets. A learned Single Judge of this Court in the Judgment reported in (2017) 4 Comp. L. J. 337 (Bom.) in the matter of Aryarup Tourism Club Resorts Pvt. Limited (In Liquidation) in paragraph No.119 has observed that the Official Liquidator acts as trustee and custodian of all such properties and assets of companies in liquidation and is empowered to deal with such properties of the companies in liquidation for the purpose of distribution of the proceeds of those properties amongst the creditors in accordance with the provisions of the Companies Act, 1956 and under supervision of this Court. Therefore, it is not only the duty of the Official Liquidator but of this Court to see that the valuer properly values the assets of the company (In Liquidation).
7. In view of above, the valuer namely Business and Industrial Consultants are directed to file reply, as prima facie it has been found that he has shown very meagre valuation. The Official Liquidator is also directed to file his reply regarding valuation report dated 15th July, 2019.
8. Stand over to 21st December, 2020.
[MADHAV J. JAMDAR, J.] Sonali