2013 (11) TMI 1816 - HC - Indian Laws

Issues Involved:

1. Release of original documents in Company Application No. 2176/2013.
2. Directions for compensation related to land acquisition in Company Application No. 1500/2013.
3. Settlement between SICOM and the ex-management of the company.
4. Payment to legal heirs of late Smt. Bati Devi.
5. Enhancement of compensation by the Official Liquidator.

Issue-wise Analysis:

1. Release of Original Documents:

In Company Application No. 2176/2013, the applicant, Mr. Sachin Duggal, sought the release of original documents annexed with Company Application No. 1331/2013. The court noted that Company Application No. 1331/2013 had been disposed of, and the original documents were no longer required. Consequently, the court directed the return of these documents to Mr. Amit Mittal, the General Power of Attorney holder of the applicant, within two weeks.

2. Directions for Compensation Related to Land Acquisition:

In Company Application No. 1500/2013, the Official Liquidator (OL) sought directions regarding the compensation for land acquired by the Government of Haryana. The land, owned by the company in provisional liquidation, had been acquired, and compensation was pending. The OL requested the Land Acquisition Officer (LAO) to deposit the compensation amount with the court. The court noted that the compensation amount of Rs. 23,50,46,995/- was lying with the LAO. The court directed the LAO to release the compensation to the OL within one week, with specific instructions for subsequent payments to the legal heir of late Smt. Bati Devi and SICOM.

3. Settlement Between SICOM and the Ex-Management:

A settlement was reached between SICOM, a secured creditor, and the ex-management of the company. SICOM agreed to reduce the outstanding amount from Rs. 72.66 crores to Rs. 37.45 crores, with a reduced interest rate of 10% simple interest instead of 19.50%. The court found the settlement to be fair and reasonable, emphasizing the benefits of reduced liability and potential interest earnings on the compensation amount. The court approved the settlement and directed the parties to adhere to its terms.

4. Payment to Legal Heirs of Late Smt. Bati Devi:

The legal heir of late Smt. Bati Devi, Dharam Singh, agreed to settle for Rs. 5,85,16,500/- in full and final settlement of the amount due from the company. The court directed the OL to pay this amount to Dharam Singh from the compensation received from the LAO. Dharam Singh also undertook to withdraw all pending complaints and legal actions against the company.

5. Enhancement of Compensation by the Official Liquidator:

The court directed the OL to apply for enhancement of the compensation amount determined under award Nos. 24, 25, and 27. The competent court was instructed to decide the application expeditiously, preferably within three months. The court also noted the potential for increased compensation based on similar cases and directed the OL to pursue this enhancement diligently.

Decision:

The court issued several directions, including the release of compensation by the LAO to the OL, simultaneous payments to Dharam Singh and SICOM, and steps to vacate attachment orders. The court also approved the settlement between SICOM and the ex-management, incorporating the term-sheet into its order. The OL was instructed to make an application for compensation enhancement and to manage any remaining funds prudently. The application was disposed of with no order as to costs, and the parties were bound by their respective undertakings and arrangements.

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