2011 (3) TMI 1453 - HC - Companies Law

Orders dated 17-10-2008 passed by the Official Liquidator and the orders dated 12-4-2005 passed by Mr. G. P. Thareja, who was appointed on 22-7-2004 by this court to examine and process the claims of alleged plot holders challenged Held that - As the winding up proceedings had commenced prior to the execution of the sale deeds in the present case, the same are void.The communication dated October 17, 2008 issued by the Official Liquidator and the orders dated April 12, 2005 passed by the Thareja committee are set aside with a direction to the Official Liquidator to once again determine as to what amount has been deposited/paid by the appellants to the respondent-company and after determining the said amount, pass an order directing refund of the same along with simple interest at 4 per cent per annum from the date of deposit. Needless to say, the Official Liquidator shall determine the said amount after giving an opportunity of hearing to the appellants. The Official Liquidator is also directed to pass a reasoned order within a period of four months from today.

Summary

Issues:
Challenging orders passed by Official Liquidator and Thareja Committee regarding alleged plot holders' claims.

Analysis:
The appeals challenge orders by the Official Liquidator and Thareja Committee concerning alleged plot holders' claims. The Thareja Committee found that two appellants had paid partial amounts for plots and recommended releasing the plots upon full payment of the balance with interest. However, the appellants argued they had made full payments before the sale deeds were executed. They also claimed payments to group companies were not considered by the Committee.

The Official Liquidator contended that the sale deeds were invalid as they were executed after the appointment of a provisional liquidator. The lands in question were part of a housing scheme in Patna, which faced challenges like flooding and required significant development work. A committee report highlighted the need for various developmental works and estimated costs for completion.

The judge held that the sale deeds were void as they were executed after the commencement of winding-up proceedings, as per the Companies Act, 1956. The B. N. Singh Committee report confirmed that the plots claimed by the appellants could not be handed over to them due to various issues with the land.

Consequently, the court set aside previous orders and directed the Official Liquidator to determine the amounts deposited by the appellants for refund with interest. The Official Liquidator was instructed to pass a reasoned order within four months. A date for a hearing before the Official Liquidator was fixed for the parties. The appeals were disposed of with these directions.