2019 (1) TMI 1809 - HC - Companies Law

Permission to Official Liquidator to invite claims of all classes of Creditors i.e. Secured Creditors, Workers, Preferential Creditors, other creditors and Share Holders/ Contributories falling under section of the Company Act, 1956 and pursuant to rule 148 of the Companies (Court) Rules, 1959 - permission to Official Liquidator to appoint a Chartered Accountant firm from the panel maintained by the office of the Official Liquidator for adjudication/ verification of the claims to be received from the Creditors pursuant to publication of advertisement - Official Liquidator to make payment on receipt of Advertisement Bill from Concerned Agency from the fund available in Company account. HELD THAT - The Official Liquidator has made full disbursement under Section 529A of the Companies Act, 1956 ( the Act ) to the secured creditors and the workmen, except Kotak Mahindra Bank ltd., since it has not filed undertaking as required by order dated 9.2.2018 passed in Company Application - The Court finds that since the Official Liquidator is required to undertake the procedure of inviting claims under the provisions of the Act as also the Company Rules, the prayers contained in para 8(a) and (b) could be granted. As regards prayer 8(c), it will be open to the Official Liquidator to pray for issuing direction to make payment for advertisement to the concerned advertising agency after advertisement is issued and therefore, such prayer is not considered at this stage. The Report stands disposed of.

Summary

Issues:
1. Inviting claims of creditors under the Companies Act, 1956 and Companies (Court) Rules, 1959.
2. Appointment of a Chartered Accountant firm for verification of claims.
3. Direction for payment of advertisement bill from company funds.

Analysis:

1. The judgment addressed the issue of inviting claims of all classes of creditors under the Companies Act, 1956 and Companies (Court) Rules, 1959. The Official Liquidator had already made disbursements to secured creditors and workmen but had not invited claims from other classes of creditors. The Court acknowledged the necessity for the Official Liquidator to follow the procedure of inviting claims as per the Act and Rules. Consequently, the Court granted the prayers for permitting the Official Liquidator to invite claims of all classes of creditors and to appoint a Chartered Accountant firm for verification of these claims.

2. Another issue dealt with in the judgment was the appointment of a Chartered Accountant firm for the adjudication and verification of claims received from creditors. The Court recognized the importance of appointing a Chartered Accountant for this purpose and granted the prayer for the appointment of such a firm from the panel maintained by the office of the Official Liquidator. This decision ensures a fair and transparent process for verifying the claims of creditors.

3. The judgment also considered the direction for payment of the advertisement bill from the company funds. While the Court granted the prayers related to inviting claims and appointing a Chartered Accountant, it deferred the decision on directing the Official Liquidator to make payment for the advertisement bill at that stage. The Court indicated that such a direction could be sought later, after the advertisement is issued. Therefore, the prayer for payment of the advertisement bill was not considered immediately.

In conclusion, the judgment granted the prayers related to inviting claims of creditors and appointing a Chartered Accountant firm for verification of claims. It deferred the decision on the direction for payment of the advertisement bill, leaving it open for the Official Liquidator to seek such a direction at a later stage. The Report was disposed of based on the Court's findings and decisions on the prayers presented.