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Extension of term of Official Liquidator under section 524 of the Companies Act. Analysis: The case involved an appeal against the order of the Company Judge regarding the extension of the term of the Official Liquidator. The appellant argued that despite the expiry of the term and the appointment of a new Official Receiver, the term of the Official Liquidator was extended by the Single Judge invoking Rule 9 of the Company Court Rules. The respondent contended that the Company Judge had the power to extend the term under section 524 of the Companies Act due to the transfer of multiple company applications. The facts confirmed that the Official Liquidator's term had expired, but he was allowed to continue for specific matters until their completion. The Court examined the relevant provisions of the Companies Act and the Insolvency Act. It was noted that under section 448 of the Companies Act, the Official Liquidator can serve as an Official Receiver in District Courts if no receiver is appointed during winding-up proceedings. However, the Court emphasized that the Official Liquidator's term had expired, and the extension by invoking Rule 9 and section 524 was not appropriate. Section 524 allows the Court to appoint additional Liquidators, which was not the case here. A new Official Receiver had been appointed, and the Court held that the successor was obligated to carry out the duties and comply with directions in accordance with the law. The Court found that the extension of the Official Liquidator's term was limited to specific matters and did not apply to the present case. The respondent failed to demonstrate any subsisting right after the term expiry, making the extension unreasonable. The Court concluded that the Single Judge's decision to extend the term was not justifiable in the circumstances. Therefore, the Court allowed the appeal, setting aside the impugned order and ruling that the extension of the Official Liquidator's term was not sustainable. This detailed analysis of the judgment highlights the key legal issues, arguments presented by both parties, interpretation of relevant legal provisions, and the Court's reasoning leading to the decision to set aside the order regarding the extension of the Official Liquidator's term.
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