2019 (7) TMI 836 - HC - Companies Law

Dissolution of company in liquidation - Winding up order - issuance of Form 69 - HELD THAT - Form 69 (notice of rejection of proof of debt) was issued to said Om Prakash Rawal by the office of OL. Amount deposited by secured creditor standard chartered bank towards dues of ex-workmen - HELD THAT - Since no claim was received, therefore, the OL had sent the letter dated 12/9/2018 followed by the reminder dated 9/1/19 to the standard chartered bank to provide the bank account details such as name of beneficiary, name of account, full account number and IFS code of bank branch to remit the said amount. But since the details have not been provided by the Standard Chartered bank therefore, the amount is lying with the OL - In view of the provisions contained in Section 555 of the Companies Act the OL is permitted to deposit this amount into Public Account of India in RBI in separate account to be known as Company s Liquidation Account. It would be just and reasonable to dissolve the company under section 481 of the Companies Act - petition disposed off.

Summary

Issues:
1. Dissolution of company in liquidation

Analysis:
The judgment pertains to the final order for the dissolution of a company in liquidation. The High Court had previously passed a winding-up order based on a reference from BIFR under Section 20(2) of SICA. The Official Liquidator (OL) was appointed as the liquidator of the company. Subsequently, the assets of the company were sold by the secured creditor under the SARFAESI Act 2002. An amount due to ex-workmen was directed to be deposited by the secured creditor, which was done under the provisions of the Act. The OL invited claims from creditors and ex-workmen, but no claim from ex-workmen was received. The OL conducted meetings with secured creditors to ascertain remaining assets, but no creditor attended. Notices were published inviting objections to the final winding-up order, and only one objection was received regarding ex-workmen dues, which could not be substantiated. The OL was directed to deposit remaining funds into the Public Account of India as per Section 555 of the Companies Act.

The accounts of the company in liquidation were audited, and the available funds were accounted for. After retaining necessary amounts for dues and expenses, the remaining sum was to be used for winding-up expenses. As all assets had been sold, and no assets remained, the court found it just and reasonable to dissolve the company under Section 481 of the Companies Act. Consequently, the order for dissolution was granted, and the OL was instructed to forward a copy of the order to the Registrar of Companies as per the rules. The company petition was disposed of accordingly.