2008 (10) TMI 695 - HC - Companies Law

Summary

Issues involved: Application for possession of land and building u/s 446 of the Companies Act, 1956.

The Applicant sought direction for possession of land and building from the Official Liquidator, claiming ownership post dissolution of partnership firm. The lease agreement with the partnership firm was terminated, and the Company (in liquidation) failed to pay rent, leading to the Applicant's request for possession. Civil suits for possession and mense profit are pending. The Respondent Bank's dues were cleared during the proceedings, and no other creditors exist.

The Official Liquidator reported the Bank's charge on movable assets and dues settlement by the Applicant. The lease agreement expired in 1987, with no rent paid since the Company's incorporation. The Applicant filed a Civil Suit seeking possession, which is subjudice. The Court directed the Official Liquidator to verify the Ex-Director's statement of affairs.

The Official Liquidator confirmed the Company had no land and the Bank's dues were settled. The Bank verified no outstanding amounts against the Company. The Court, after reviewing documents and declarations, found the Applicant's claim justified as the property did not belong to the Company. The Official Liquidator was directed to hand over possession to the Applicant, who agreed to withdraw the pending suit.

In conclusion, the Court directed the Official Liquidator to transfer possession to the Applicant after verifying ownership. The Applicant waived arrears of rent and agreed to withdraw the pending suit. The application was disposed of without costs.