2018 (2) TMI 652 - HC - Companies Law

Symbolic possession of the premises by OL - removal of seal and notice pasted on the premises - Held that - As stated by the Official Liquidator and as submitted by the learned advocate Mr.Acharya for the Official Liquidator, when the company in liquidation does not claim ownership of the premises, the Official Liquidator shall be required to remove the seal and the notice pasted on the premises for taking symbolic possession of the premises. The Official Liquidator is, therefore, directed to remove the seal placed on the lock and notice pasted on the main door of the premises for taking symbolic possession of the premises within a period of ten days from today. On removal of such seal and notice pasted on the premises, the premises shall not be treated to be in custody of this Court.

Summary

Issues:
Possession of office premises, Rent payment, Municipal taxes dues

Analysis:

1. Possession of office premises:
The applicant filed an application seeking directions for the Official Liquidator to hand over peaceful possession of the office premises situated in Ahmedabad. The Official Liquidator had taken symbolic possession of the premises after the company in liquidation failed to appear on the scheduled day. However, it was later revealed that the property did not belong to the company in liquidation but to the applicant. The Official Liquidator agreed to remove the seal and notice from the premises, and the Court directed the Official Liquidator to do so within ten days, thereby releasing the premises from the custody of the Court.

2. Rent payment:
The applicant requested the Court to direct the Official Liquidator to pay rent for the period they had possession of the office premises. However, considering the ownership issue and the Official Liquidator's agreement to remove the seal and notice, the applicant decided not to press for rent payment. The Court, therefore, did not pass any specific order regarding rent payment.

3. Municipal taxes dues:
Similarly, the applicant also sought a direction for the Official Liquidator to pay the Municipal Taxes dues for the period they held possession of the office premises. However, as the ownership matter was clarified, and the Official Liquidator agreed to release the premises, the applicant did not press for this prayer as well. Consequently, the Court did not issue any specific order regarding the payment of Municipal Taxes dues.

In conclusion, the Court directed the Official Liquidator to remove the seal and notice from the office premises within ten days, thereby releasing the premises from the Court's custody. As the applicant withdrew the requests for rent payment and Municipal Taxes dues in light of the ownership clarification, no further orders were deemed necessary, and the application was disposed of accordingly.