Ol Of Morvi Chemicals Ltd. (In Liqn) vs Na on 8 January, 2020

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Gujarat High Court

Ol Of Morvi Chemicals Ltd. (In Liqn) vs Na on 8 January, 2020

Bench: A.J.Desai

         C/OLR/2/2020                                               ORDER



         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

           R/OFFICIAL LIQUDATOR REPORT NO. 2 of 2020
                              IN
                COMPANY PETITION NO. 08 OF 1966

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                OL OF MORVI CHEMICALS LTD. (IN LIQN)
                              Versus
                               NA
==========================================================
Appearance:
MR PATHIK M ACHARYA(3520) for the Applicant(s) No. 1
OFFICIAL LIQUIDATOR(16) for the Applicant(s) No. 1
for the Respondent(s) No. 1
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 CORAM: HONOURABLE MR.JUSTICE A.J.DESAI

                                   Date : 08/01/2020

                                    ORAL ORDER

1. By this report under section 481 of the Companies Act,1956, the Official Liquidator has prayed for dissolution of the company, named, O.L. of Morbi Chemicals Ltd., which was ordered to be wound up vide order dated 08.08.1966 passed in Company Petition No.08 of 1966 hence, winding-up of the company commenced in the year 1970. Hence, the matter is 53 years old.

2. The Report said that since matter is about 53 years old and no records of the company other than an old liquidation register showing the name of the company with details such as Company Petition number and date of winding up order no other records are available with the Official Liquidator.

3. The Official Liquidator has also stated that publication on MCA website was made for the dissolution of Page 1 of 4 Downloaded on : Thu Jan 09 23:37:48 IST 2020 C/OLR/2/2020 ORDER the present company along with other companies and no response was received with regards to assets, liabilities, dues, if any, and other details pertaining to the said company. It was also submitted that in past, i.e. more than 15 years, there appears no movement/ correspondence in the said company's A/c. as well as any litigation by or against the Official Liquidator. This the process of winding-up of the company can be stated to have been stand-still.

4. The Official Liquidator has also stated that there is no bank balance available in the account of the Company in liquidation. Even as per letter dated 17.07.2019 issued by ROC, Ahmedabad no records of the company is available with the ROC.

5. The Official Liquidator, relying upon the provisions of Section 481 of the Act, has contended that it is not possible to proceed with the winding up for want of fund and assets. Relying upon the judgement of the Hon'ble Apex Court in the case of Meghal Homes Pvt. Ltd. Vs. Shree Niwas Girni K.K.Samiti, reported in (2007)7 SCC 753, it is contended by the Official Liquidator that this Court may pass appropriate order of dissolution of the Company in liquidation.

6. The Official Liquidator has also placed on record the fact that by a communication dated 12.04.2019, intimation issued to ROC for furnishing no objection in dissolution of the said company. Registrar of Companies, by a communication dated 21.08.2019 informed that no records/ registration detail etc. have been found in their office with regards to the said company. Thus they have offered no comments with regards to dissolution of the company by the Hon'ble High Court of Page 2 of 4 Downloaded on : Thu Jan 09 23:37:48 IST 2020 C/OLR/2/2020 ORDER Gujarat. The Official Liquidator has also further averred that half yearly statement of accounts of the Company in liquidation has already been filed before this Court as provided under Rule 298 of the Companies (Court) Rules,1959. It is further contended that in these circumstances, it is not possible for the Official Liquidator to further carry out the proceedings of winding up. The Official Liquidator has also contended that even after the order of dissolution that may be passed by this Court as provided under Section 559 of the Act, the period of 2 years is available for anybody to raise the objection and file an appropriate proceedings before this Court.

7. The Official Liquidator, relying upon the auditor's certificate dated 10.08.2019, has contended that no bank balance and fixed Deposit (FDR) is available in said company's account, no assets of the Company in liquidation are available. In light of the aforesaid, it is therefore submitted that the report may be accepted and appropriate order of dissolution of the Company in liquidation may be passed as prayed for.

8. Having heard the learned advocate for the Official Liquidator and on perusal of the record of this report and in facts of this case and considering the ratio laid down by the Hon'ble Apex Court in the case of Meghal Homes Pvt. Ltd. (supra), the report deserves to be accepted. The company, named, M/s.Morbi Chemicals Ltd. (In Liquidation) is hereby dissolved under Section 481 of the Act and the Official Liquidator attached to this Court stands discharged and is relieved as liquidator of M/s.Morbi Chemicals Ltd. (In Liquidation).

Page 3 of 4 Downloaded on : Thu Jan 09 23:37:48 IST 2020 C/OLR/2/2020 ORDER

In case of any difficulty, affected party if aggrieved with the present order, may apply for reviewing for the same in accordance with provisions of section 559 of the Act.

Accordingly, the report is allowed in the aforesaid terms.

[A.J.DESAI,J.] DIPTI PATEL Page 4 of 4 Downloaded on : Thu Jan 09 23:37:48 IST 2020

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