1993 (3) TMI 383 - HC - Companies Law

Summary

Issues Involved:
1. Sale of Company Property
2. Jurisdiction of Company Court
3. Rights of Alleged Tenants and Trespassers
4. Rights of Heirs under West Bengal Premises Tenancy Act
5. Summary Eviction Powers of Company Court
6. Clarification of Property Boundaries and Easement Rights

Detailed Analysis:

1. Sale of Company Property:
The Official Liquidator applied for the sale of the company property at 6A, Short Street, which includes a pucca building and vacant land. Pushpa Devi Jhunjhunwalla, a shareholder and contributory, contested the sale notice, arguing that the property should be sold vacant to fetch a higher price. The court ordered the Official Liquidator to vacate the property and issue a fresh sale notice indicating the property as vacant.

2. Jurisdiction of Company Court:
The court clarified that it does not have jurisdiction over 6B, Short Street, as it is not company property. The Company Court can only handle matters related to the property of the company in liquidation, such as 6A, Short Street.

3. Rights of Alleged Tenants and Trespassers:
Hyam Joseph Hallen claimed to be a tenant but had no legal standing. The court found that Hallen and his school were mere trespassers. Trixie Mordecal, who was present at 6, Short Street, was also not a protected tenant as she was not an heir of the original lessees.

4. Rights of Heirs under West Bengal Premises Tenancy Act:
The court examined whether Trixie Mordecal or any other heirs could claim statutory tenancy. Under Sec. 2(h) of the West Bengal Premises Tenancy Act, only heirs residing with the tenant at the time of death are protected. Trixie Mordecal did not qualify as she was not an heir, and Cheryl Isaac, who was an heir, did not reside with the tenant.

5. Summary Eviction Powers of Company Court:
The court has the power to order summary eviction of trespassers from company property under Sec. 446(2) of the Companies Act. The court directed the Official Liquidator to evict Hallen and others from 6A, Short Street, and to raise partition walls to clearly segregate the property.

6. Clarification of Property Boundaries and Easement Rights:
The court clarified that the sale notice should not include any portion of the building on 6D, Short Street. However, the claim for easement rights by the owners of 6D was not supported due to lack of evidence of continuous use. The property will be sold on an "as is where is" basis.

Judgment Summary:
- The sale notice of 4th September 1992 is cancelled, and a fresh notice will be issued indicating the property as vacant.
- The Official Liquidator must return the payments received from Hallen and ensure the property is vacated within 8 weeks.
- The next sale notice will exclude the portion of the building on 6D, Short Street.
- Expenses for these actions will come from the Official Liquidator's funds.
- No order as to costs. All parties, including the police, must act on a signed copy of this judgment.