2015 (5) TMI 624 - HC - Companies Law

Application for revival of company - Claim of State Bank of India s satisfied - Dues of the company in liquidation towards the Corporation stands satisfied as per one time settlement reached - Held that - In view of the changed circumstances, the Company is brought out of liquidation and is revived. It would now be free to resume its business. However, the Official Liquidator would handover the vacant possession of the premises, i.e., land, building and factory including the plant and machinery lying therein to the Ex-Director Sh.Rajiv Jain after removing any encroachments. In case, the property has been encroached by anyone regarding which an FIR No.31 dated 4.3.2014 in PS Kasola, District Rewari has been registered, the SSP, Rewari is directed to assist the Official Liquidator in removing the encroachments forthwith with 7 days notice to those found in unauthorised possession. Since the company stands revived, the title deeds which were deposited by the petitioner to secure a loan by equitable mortgage, shall be returned to the petitioner company and the mortgage will stand discharged. The Registrar of Companies to make necessary corrections. The petitioner to take steps to inform the Registrar of Companies within 30 days of receipt of this order of the revival of the petitioner company. Henceforth, the company will be treated as having come out of liquidation. Consequently, the winding up order is recalled. If any sundry bills or expenses remain due, the Official Liquidator would be free to send a notice to the petitioner company together with a calculation sheet including the fees of the Chartered Accountant, if any pending payment. The Official Liquidator at the time of handing over the possession would initiate demarcation process through the revenue authorities in Rewari. - Application for revival of company accepted.

Summary

Issues: Company revival, settlement of dues, possession of premises, encroachments, discharge of mortgage, winding up order recall, demarcation of assets.

Company Revival: The State Bank of India's claim has been satisfied, and the bank has no objection to the company being revived. The Housing Finance Corporation states that the company's dues towards the Corporation have been satisfied through a one-time settlement. The Ex-Directors have cleared the watch and ward expenses for the factory unit, and the company is now free to resume its business.

Settlement of Dues: Drafts have been provided to settle the claims of Gujrat State Financial Services Ltd. and the Employees Provident Fund Organisation, which have been determined by the Company Court and are final in their adjudication. The Official Liquidator is directed to remit the drafts to the respective entities.

Possession of Premises: The Official Liquidator is instructed to hand over vacant possession of the premises, including land, building, factory, and machinery, to the Ex-Director after removing any encroachments. The SSP, Rewari, is directed to assist in removing encroachments with a 7-day notice to unauthorized occupants.

Discharge of Mortgage: The title deeds deposited for a loan by equitable mortgage are to be returned to the petitioner company, and the mortgage will stand discharged. The Registrar of Companies is to make necessary corrections to reflect the revival of the company.

Winding Up Order Recall: The winding up order is recalled, and any pending sundry bills or expenses are to be notified to the petitioner company by the Official Liquidator, including the fees of the Chartered Accountant, if any.

Demarcation of Assets: The Official Liquidator is to initiate the demarcation process through revenue authorities in Rewari, and the Deputy Commissioner, Rewari, is directed to demarcate the immovable assets before they are restored to the company. The company will be treated as having come out of liquidation henceforth.