2011 (7) TMI 1393 - HC - Indian Laws

Summary

Issues involved: Appointment of Provisional Liquidator and asset disposal concerns.

Appointment of Provisional Liquidator: The petitioner's advocate submitted that after consent terms were agreed upon between the parties, the respondent failed to abide by them, leading to default in payments. The Court, upon being informed of this default, admitted the petition and directed the petitioner to issue a notice of admission. Subsequently, the petitioner published the advertisement as directed by the Court. The respondent, however, did not make any settlement offer or payment even after the advertisement was issued. Due to concerns that the respondent might attempt to dispose of its assets, the Official Liquidator attached to the Court was appointed as the Provisional Liquidator. The Provisional Liquidator was granted the authority to take necessary steps and the respondent was directed to abide by the orders.

Asset Disposal Concerns: The petitioner expressed strong apprehension that the respondent might try to dispose of its assets after the advertisement was published. To prevent this, the Provisional Liquidator was appointed and the respondent, along with its agents, was restrained from alienating the properties of the company in any manner. The Provisional Liquidator was given three weeks to take inventory and file an interim report.

Conclusion: The Court appointed the Official Liquidator as the Provisional Liquidator to address the default in payments by the respondent and concerns regarding potential asset disposal. The respondent was directed to comply with the orders, and the Provisional Liquidator was granted authority to take necessary steps to safeguard the company's assets.