2015 (9) TMI 1767 - HC - Companies Law

Direction to disburse outstanding amount of security charges to the applicant - HELD THAT - It is clear from the record that the Official Liquidator in pursuance to the direction given by this Court appointed the security agencies from time to time. The said security agencies have deployed security guards for protecting the assets and properties of the company in liquidation. The said security agencies raised their bills from time to time. However the amount is not paid to the concerned security agencies in view of the various disputes and litigations pending before this Court with regard to the theft of the properties and assets of the company in liquidation. It is further revealed from the record that this Court appointed GITCO for assessing the loss caused to the assets of the company in liquidation because of the theft and GITCO has submitted its report. The Official Liquidator has not paid the security charges to the applicant of Company Application No.242 of 2012 for the period between 2003 to 2008 and the applicant of Company Application No.40 of 2014 for the period between May 2008 to March 2009. Thus now as per the last report filed by the Official Liquidator on 20.3.2015 and as per the documents produced at pages no.346 and 347 of the compilation the outstanding amount is required to be paid to the concerned applicant. Hence these applications are required to be considered and hence the following order (1) The Official Liquidator is directed/permitted to pay an amount of Rs. 53, 84, 647/- as per the statement produced at page no.346 to the applicant of Company Application No.242 of 2012 within a period of three weeks from the date of receipt of this order by RTGS. (2) The Official Liquidator shall make the payment of Rs. 7, 49, 070/- to Dy. Commissioner Central Excise Customs and Service Tax Makarpura Division Vadodara-II instead of the applicant of Company Application No.40 of 2014 as per the communication dated 5.2.2014 within a period of three weeks from the date of receipt of the order by RTGS. Application disposed off.

Summary

Issues:
1. Outstanding security charges payment to the applicant by the Official Liquidator.

Detailed Analysis:
The judgment involves two applications filed by the concerned applicants seeking direction for the Official Liquidator to disburse outstanding security charges. The applicants were appointed as security agencies for safeguarding the assets of a company in liquidation. The Official Liquidator failed to make payments for security expenses, leading to disputes and litigations. The Court appointed GITCO to assess losses caused to the company's assets due to theft, and the valuer's reports indicated the amount of liability of each applicant for the theft losses.

In the first application, the applicant was appointed as a security agency from 2003 to 2008. The total security charges amounted to Rs. 68,28,362, out of which only Rs. 12,43,960 was paid. The theft loss quantified by GITCO was Rs. 1,99,755. Therefore, the balance amount of Rs. 53,84,647 was directed to be paid to the applicant within three weeks via RTGS.

In the second application, the applicant served as a security agency from May 2008 to March 2009. The security charges totaled Rs. 9,28,470, with no payment made. The theft loss quantified was Rs. 1,79,400. Thus, the balance amount of Rs. 7,49,070 was directed to be paid to the Deputy Commissioner of Central Excise, Customs, and Service Tax within three weeks via RTGS.

The judgment highlighted that the Official Liquidator had funds of approximately Rs. 81 lakhs in the company's account, and it was directed to consider paying the outstanding bills of the security agencies after adjusting the loss of assets as per GITCO's valuation reports. The Court emphasized the need to settle the outstanding amounts owed to the security agencies based on the latest reports and documents presented. The judgment concluded with the directives for payment to the respective applicants and the disposal of the applications.