2019 (2) TMI 2054 - HC - Companies Law

Permission to Official Liquidator to invite claims from workers and secured creditors of the company in liquidation under Section 529, 529A 530 of the Companies Act, 1956 - permission to Official Liquidator to appoint Chartered Accountant from the panel maintained by the Official Liquidator for verification and adjudication of claims - permission to Official Liquidator to make payment of advertising charges as well as professional fees of Chartered Accountants on receipt of their bill from the Account of the Company in liquidation being liquidation expenses. HELD THAT - It is stated that presently amount of Rs.1,93,000,00/- is available in the account of the company in liquidation for disbursement and claims under Section 529, 529A and 530 of the Companies Act, 1956, (the Act) are yet not invited and that after receipt of claims, the chartered accountant shall be required to be appointed to verify the claims and after verification of the claims by chartered accountant for disbursement to the funds amongst the creditors as per their entitlement, the further report will be filed. The report stands disposed of.

Summary

Issues:
1. Permission to invite claims from workers and secured creditors under Sections 529, 529A, and 530 of the Companies Act, 1956.
2. Appointment of a Chartered Accountant for verification and adjudication of claims.
3. Payment of advertising charges and professional fees from the account of the company in liquidation.
4. Any other orders and directions deemed appropriate by the Honorable Court.

Analysis:

Issue 1:
The report sought permission to invite claims from workers and secured creditors under Sections 529, 529A, and 530 of the Companies Act, 1956. The Court noted that the Official Liquidator had received the sale consideration and handed over the possession of the property to the purchaser. The Asset Sale Committee had met to disburse the amount in the account of the company in liquidation. The Court, after considering the submissions, granted the prayers made in the report for inviting claims from workers and creditors. The report was disposed of accordingly.

Issue 2:
Regarding the appointment of a Chartered Accountant for verification and adjudication of claims, it was mentioned that an amount was available in the account of the company in liquidation for disbursement, but claims under the relevant sections of the Companies Act had not been invited yet. The report stated that after the receipt of claims, a Chartered Accountant would be appointed to verify the claims and disburse funds among the creditors as per their entitlement. The Court acknowledged this process and directed the appointment of a Chartered Accountant for this purpose.

Issue 3:
The report also requested permission to make payments for advertising charges and professional fees of Chartered Accountants from the account of the company in liquidation. It was highlighted that the sale committee recommended inviting claims of workers and all creditors under the relevant sections of the Act. The Court, after hearing the submissions, granted the prayers made in the report, including the request for payment of advertising charges and professional fees from the company's account for liquidation expenses.

Issue 4:
Lastly, the report sought any other orders and directions deemed just and appropriate by the Honorable Court. After considering the contents of the report and hearing the submissions of the Official Liquidator's advocate, the Court found that the prayers made in the report were acceptable and granted accordingly. The report was disposed of based on the Court's decision.

In conclusion, the judgment by the Honorable Court addressed various issues related to inviting claims from workers and creditors, appointing a Chartered Accountant for verification, approving payments for expenses, and considering any other necessary orders and directions in the context of the company in liquidation under the Companies Act, 1956.