2018 (8) TMI 2152 - HC - Companies Law

Seeking permission for withdrawal of petition - Recall of petition admitted - appointment of OL as the Provisional Liquidator - OL states that expenses have been spent on the company on account of security and other expenses - HELD THAT - The order dated 20.9.2017 is recalled, subject to the respondent paying a sum of Rs.24,00,000/- to the OL. The order appointing the OL as the Provisional Liquidator would stand recalled on payment of the dues of the OL. OL will de-seal the premises which have been sealed by it and hand over the possession to the Authorised Representative of the respondent company on payment of the dues of the OL. Petition is dismissed as withdrawn.

Summary

Issues: Settlement of dues, Recall of court order appointing Provisional Liquidator, Payment of expenses incurred by OL, Possession of sealed premises, Withdrawal of petition

Settlement of Dues:
The counsel for both parties informed the court that they have settled the matter. Two demand drafts totaling Rs.98,00,000 were handed over in court as full settlement of all dues. One draft was from Punjab and Sind Bank, Atta, Noida, and the other from Kaushambi, Ghaziabad, U.P. The parties requested the court to recall the order admitting the petition and appointing the OL as the Provisional Liquidator.

Recall of Court Order Appointing Provisional Liquidator:
The court recalled the order dated 20.9.2017 appointing the OL as the Provisional Liquidator, subject to the respondent paying Rs.24,00,000 to cover expenses incurred by the OL. The order appointing the OL would stand recalled upon payment of these dues. The OL would de-seal the sealed premises and hand over possession to the Authorized Representative of the respondent company after receiving payment.

Payment of Expenses Incurred by OL:
The counsel for the OL stated that expenses of Rs.24,00,000 had been spent on the company for security and other expenses. The court ordered the respondent to pay this amount to the OL within eight weeks from the date of the judgment.

Possession of Sealed Premises:
Upon payment of the dues to the OL, the OL would de-seal the premises that had been sealed and hand over possession to the Authorized Representative of the respondent company.

Withdrawal of Petition:
The counsel for the petitioner expressed the intention to withdraw the petition subject to the realization of the demand drafts. The court dismissed the petition as withdrawn and disposed of all pending applications.

This judgment reflects a successful settlement between the parties, leading to the withdrawal of the petition and the recall of the order appointing the Provisional Liquidator. The payment of expenses incurred by the OL and the possession of sealed premises were key aspects addressed in the judgment, ensuring a comprehensive resolution of the legal dispute.