2022 (6) TMI 503 - HC - Companies Law

Dissolution application - HELD THAT - This Court is convinced that just and reasonable circumstances exist for acceding to the dissolution prayer in the captioned dissolution application - the said company stands dissolved and OL stands discharged.

Summary

Issues: Dissolution application, Main Company Petition

Dissolution Application:
The Dissolution Application, filed by the Official Liquidator (OL) and the Deputy Official Liquidator (Dy. OL), sought the dissolution of a company based on a report dated 28.03.2022. The Company Court noted that an earlier order from 22.01.2013 directed the OL to take possession of the company, which led to the commencement of the liquidation process under The Companies Act, 1956. The report indicated a meager fund position of the company, with only Rs. 39,930 in the bank and no investments. The Court found the circumstances just and reasonable for granting the dissolution prayer in the application, ordering specific prayers (a) to (d) and (g) as requested.

Main Company Petition:
The Main Company Petition, which dated back two decades, was deemed outdated and no longer serving any purpose by the Court. Allowing the petition to continue would be an exercise in futility. Consequently, the Court decided to dissolve the company and discharge the Official Liquidator. Prayer limb (e) of the dissolution application, requesting the deposit of the remaining balance in the public account of India at the Reserve Bank of India, was granted, with specific deductions permitted under the Act and Rules. Prayer limb (f) involved the destruction of physical records in the OL's office, to be carried out according to rules set by the Central Government. Records related to the main CP and its applications were to be governed by the digitization process in the Madras High Court, which also provided for record destruction. The company was officially dissolved, and no costs were awarded in the matter.