2000 (9) TMI 974 - HC - Companies Law

Summary

Issues:
1. Jurisdiction of the Court over property in liquidation.
2. Validity of sale deeds executed after winding up order.
3. Restoration of land ownership in revenue records.
4. Locus standi of applicants in mutation process.

Issue 1: Jurisdiction of the Court over property in liquidation
The judgment discusses the Official Liquidator's complaint regarding the acquisition of the company's land by the Ceiling Authority after the winding-up order. The Court held that the property in question, being in the custody of the Court through the Official Liquidator, could not be subjected to proceedings under the Ceiling Act without the Court's permission. The Court allowed the Official Liquidator's application, quashing the order declaring the land as surplus and restoring ownership to the company in liquidation.

Issue 2: Validity of sale deeds executed after winding up order
The judgment addresses the contention of bona fide purchasers who acquired the land through sale deeds executed after the winding-up order. The Court emphasized that the sale deeds, executed by the Managing Director of the company in liquidation after the winding-up order, were legally invalid. The Court disregarded these deeds and ordered the land to be recorded back in the name of the company through the Official Liquidator.

Issue 3: Restoration of land ownership in revenue records
The applicants sought directions for the restoration of the company's name in revenue records and mutation of their names in relevant records. The Court, after quashing the Ceiling Authority's order declaring the land as surplus, ordered the land to be recorded back in the revenue records in the name of the company through the Official Liquidator within fifteen days of the order.

Issue 4: Locus standi of applicants in mutation process
The Court considered the locus standi of the applicants in seeking mutation of land ownership. It noted that the Official Liquidator should handle the mutation process as the land was in custodia legis. The Court clarified that the applicants were essentially drawing attention to the need for correcting the records to reflect the ownership of the company in liquidation, and their involvement in the process was not crucial.

Overall, the judgment clarifies the Court's jurisdiction over property in liquidation, invalidates post-winding up sale deeds, orders the restoration of land ownership in revenue records, and emphasizes the role of the Official Liquidator in handling such matters.