2022 (6) TMI 722 - HC - Companies Law

Dissolution of Corporate Debtor - disbursement qua creditors have been made and there has been no claim from contributories - few claims rejected on the ground of non-submission of documentary evidence - HELD THAT - The captioned main CP has served its purpose i.e., it has outlived its utility. Next year it will be two decades old. Two decades may be contemporary history in a historian's perspective but in litigation, it is clearly vintage nay ancient. This Court is convinced that just and reasonable circumstance exists for acceding to dissolution prayer in the captioned application - OL is permitted to deposit balance in the hands of OL qua said Company in the Public Account of India in the Reserve Bank of India after making permissible Statutory deductions and after incurring permissible expenses i.e., permissible under said Act and Rules thereunder. To be noted such deposit in the Public Account of India is inter alia under Section 555 of said Act. This Court is informed that the Central Government has made rules for destruction of physical records in the office of the OL and the same are traceable to sub-sections (1) and (2) of Section 550 of said Act. The physical records in the office of OL and destruction of the same can be done in accordance with said Rules. Be that as it may, it is made clear as far as physical records qua main CP and application/s thereat in this Company Court are concerned, the same shall be governed by digitization which is now underway as the digitization process in this Court would be making provision for destruction of physical records also. Captioned application and main CP disposed of.

Issues involved:
1. Application under Section 481 of 'The Companies Act, 1956' for dissolution.
2. Disbursement to creditors and absence of claims from contributories.
3. Fund position of the company in liquidation.
4. Acceding to the dissolution prayer in the application.
5. Disposal of the multi-limbed prayer in the Company application.

Analysis:
1. The judgment pertains to a Company Application and main Company Petition under Section 481 of 'The Companies Act, 1956' seeking dissolution. The Official Liquidator (OL) filed the application supported by a report detailing the liquidation process of 'Namakkal Sree Anjaneyaa Chit Fund Private Limited.' The company was ordered to be wound up in 2004, and the liquidation process has been ongoing in accordance with the Act.

2. The report highlighted disbursements to creditors and the absence of claims from contributories. Eight ordinary creditors submitted claims, out of which 2 were admitted, and 6 were rejected for non-submission of original documents. The fund position of the company as of a specified date was also outlined in the report.

3. Considering the submissions made by the Deputy Official Liquidator (Dy. OL), the Court acknowledged the lengthy duration of the main Company Petition and the justifiable circumstances for granting the dissolution prayer in the application due to the company's liquidation process completion.

4. The Court examined the multi-limbed prayer in the Company application and granted orders as prayed for in certain prayer limbs. The OL was permitted to deposit the balance in the hands of the OL regarding the company in the Public Account of India after statutory deductions and permissible expenses. Rules for destruction of physical records in the OL's office were also addressed, emphasizing digitization for record preservation.

5. Ultimately, the Court disposed of the captioned application and main Company Petition by granting dissolution, discharging the OL, and clarifying that the company stands dissolved with no order as to costs. The judgment encapsulates the procedural aspects and decisions related to the liquidation and dissolution process under the Companies Act, ensuring compliance with legal provisions and efficient closure of the company's affairs.

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