1978 (5) TMI 101 - HC - Companies Law

Summary

Issues: Application for removal of the liquidator, appointment of an official liquidator, non-compliance with statutory provisions, criminal proceedings initiated by Registrar of Companies, appointment of managing directors as official liquidators, failure to hand over documents, appointment of official liquidator by the court, fixing the remuneration of the liquidator.

The judgment pertains to an application seeking the removal of the current liquidator and the appointment of an official liquidator in their place. The petitioner, appointed as the liquidator of a company through a voluntary winding-up resolution, faced allegations of non-compliance with statutory requirements. The Registrar of Companies initiated criminal proceedings against the petitioner for this non-compliance. The petitioner, in response, requested relief from the court due to unforeseen personal circumstances, including family calamities. The court acknowledged the petitioner's challenges but noted its lack of jurisdiction to relieve the petitioner of the consequences of default, as criminal cases were already filed. The court considered appointing the managing directors of the company as official liquidators but found them unsuitable due to their failure to hand over necessary documents to the petitioner promptly.

Subsequently, the court decided to appoint the official liquidator as the liquidator of the company under section 515 of the Companies Act. The court emphasized the importance of winding up the company and appointing an official liquidator for its dissolution. The court also highlighted that the remuneration of the liquidator should be fixed by the court and credited to the Central Government as per section 515(4) of the Companies Act. The final order directed the official liquidator to take over the role from the petitioner, with specific instructions for the handover of all relevant documents and payment of a fixed remuneration. An injunction was issued against the Registrar of Companies, and the previous interim injunction was vacated. All involved parties were directed to act as per the signed copy of the court's order.