2009 (9) TMI 1093 - HC - Companies Law

Issues Involved:

1. Auction of immovable assets of the company in liquidation.
2. Claim for possession of the property by alleged owners.
3. Status and rights of the company as a statutory tenant.
4. Salable interest of the company in liquidation in the property.
5. Directions for handling the property and resolving claims.

Issue-wise Detailed Analysis:

1. Auction of Immovable Assets:
- The applicant, Ed-India Public Trust, filed Company Application No. 318 of 2006 seeking directions for the Official Liquidator and the sale committee to auction the immovable assets of the company in liquidation. The applicant expressed a desire to purchase the property and had submitted an offer. However, due to pending claims regarding ownership, no immediate action could be taken for the sale of the property.

2. Claim for Possession by Alleged Owners:
- Company Application No. 370 of 2006 was filed by certain individuals claiming to be the successor owners of the property, seeking its possession. The Official Liquidator's report indicated that the property was not owned by the company in liquidation, and the claim of ownership by the applicants needed adjudication. The court observed that the relief sought in the present application was not granted in the earlier application (No. 249 of 2006) due to its scope being outside a review application, allowing for a separate application for such relief.

3. Status and Rights as a Statutory Tenant:
- The company in liquidation was found to be in possession of the property as a statutory tenant under the Bombay Rents Hotel and Lodging House Rates Control Act, 1947, after the expiry of the lease agreement. The court noted that the company could continue occupying the property as long as it complied with statutory conditions, such as payment of rent and adherence to other terms. The rights of a statutory tenant are protected under the Rent Act, and the landlord's ability to recover possession is restricted unless specific conditions are met.

4. Salable Interest in the Property:
- The court examined whether the company in liquidation had any salable interest in the property. It was concluded that while the rights of a statutory tenant are heritable, they are not transferable or salable unless permitted by government notification. The existing notifications did not cover the sale of the property by the company in liquidation, as it was not an ongoing concern. Consequently, the company did not have a salable interest in the property.

5. Directions for Handling the Property:
- The court directed the Official Liquidator to sell the superstructure over the land, considering it as belonging to the company in liquidation, and to hand over possession to the applicant after the sale. The applicant agreed to forgo arrears of rent and taxes, which would benefit the company's corpus. The court also instructed the Official Liquidator to issue a public notice inviting objections to the ownership claim and to report any objections to the court. The directions ensured that no genuine owner's claim would be defeated, and the company's rights as a statutory tenant would end upon surrendering the land.

In conclusion, the court allowed Company Application No. 370 of 2006 in terms of the directions provided, while Company Application No. 318 of 2006 was disposed of without further orders, as the question of accepting the offer did not arise. The Official Liquidator's report, OLR No. 84 of 2006, was also disposed of in alignment with the order passed in Company Application No. 370 of 2006.

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