2019 (4) TMI 2028 - HC - Indian Laws

Failure/negligence to disclose the assets before the Liquidator - HELD THAT - The private respondent Nos. 28 to 31 is directed to submit affidavit before the Official Liquidator with regard to the assets of M/s. Greenage Food Products Ltd. ( in liquidation). The said respondents are presently in correctional home Superintendent of concerned correctional home shall ensure that they are able to affirm/notarise the affidavit within the correctional home. Respondent Nos.18 to 31 shall submit affidavit disclosing particulars of the assets held by them individually and/or by their Companies (except M/s. Pincon Spirits Ltd. and M/s. Greenage Food Products Ltd.) before this Court on the next date of hearing. The matter is adjourned for four weeks.

Summary

Issues:
1. Disclosure of assets by Directors of a company in liquidation.
2. Time limit for resolution of insolvency proceedings.
3. Disclosure of personal assets by private respondents.
4. Sufficiency of company assets to repay depositors.
5. Deposit made by a respondent's wife with the court.
6. Submission of affidavits by respondents regarding assets.

Analysis:
1. The judgment addressed the issue of disclosure of assets by Directors of M/s. Greenage Food Products Ltd., a company in liquidation. The Official Liquidator highlighted that the Directors failed to disclose assets. The court directed the Directors to submit affidavits before the Liquidator regarding the company's assets. If the Directors are in custody, the correctional home Superintendent must facilitate the affirmation of the affidavits.

2. The judgment also dealt with the expiration of the time limit for resolution of insolvency proceedings against M/s. Pincon Spirits Ltd. The Resolution Professional informed the court that orders for liquidation are pending from the tribunal. The court acknowledged this and adjourned the matter for four weeks.

3. Private respondents expressed readiness to disclose their personal assets. Their advocate confirmed this willingness before the court. The court directed these respondents to submit affidavits disclosing their individual or company-held assets on the next hearing date.

4. Respondents representing the company assured the court that the company's assets are sufficient to repay depositors. This submission was made by the advocate of respondent nos. 23 and 24. The court took note of this assurance without further intervention.

5. A respondent's wife deposited a significant sum with the court as per a previous order. The court mentioned this deposit and stated that it was subject to further directions in the ongoing proceedings. No further action was taken on this matter during the current hearing.

6. Finally, the court directed the Director of Economic Offences to submit an affidavit detailing all attached assets, excluding those of M/s. Pincon Spirits Ltd. and M/s. Greenage Food Products Ltd., along with their valuations. The court set the next hearing date for the submission of these affidavits and adjourned the matter for four weeks to allow for compliance.