9911796707
TMI Blog1973 (8) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... ng-up has been brought under the supervision of the court ? The company (Globe United Engineering Foundry Co. Ltd.), on December 28, 1968, passed a special resolution for its winding up voluntarily. Shri V. Rajaraman, the appellant before us, was appointed the liquidator and his remuneration was fixed at Rs. 3,000 only. There was a challenge to this resolution from another company, Messrs. Globe Motors Ltd., through a petition, No. C. P. 8 of 1909. As a result of a compromise the learned company judge ordered voluntary winding-up to continue, subject to the supervision of the court. The appellant-liquidator, because of an alleged increase in his work, applied for a revision of his remuneration, so as to bring it at par with that of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 490, which specifically prohibits such an increase. Mr. Rao submitted that on liquidation being brought under the supervision of the court, it ceased to be a voluntary winding-up and came out of the scope of section 490. But this submission is without any basis. Provisions for winding up subject to supervision of the court are contained in Chapter IV of Part 7 of the Companies Act (sections 522 to 527). Section 522 of the Act, which gives power to the court to order winding-up subject to its supervision, comes into play only after the company has passed a resolution for voluntary winding up. Under this provision, the court does not terminate the voluntary winding up, nor does it substitute any other form of winding-up in place of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point or remove a liquidator on an application made by the Registrar in this behalf. 525. Powers and obligations of liquidator appointed by court. A liquidator appointed by the court under section 524 shall have the same powers, be subject to the same obligations, and in all respects stand in the same position, as if he had been duly appointed in accordance with the provisions of this Act with respect to the appointment of liquidators in a voluntary winding up. 526. (2) Except as provided in sub-section (1), any order made by the court for a winding-up subject to the supervision of the court, shall for all purposes, including the staying of suits and other proceedings, be deemed to be an order of the court for winding up the company b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he court may appoint the person, who has already been appointed as a liquidator, to be the liquidator in the winding up by the court in addition and subject to the control of the official liquidator. This section also does not give any power to the court to increase the remuneration of the liquidator. None of these sections, therefore, assist the appellant. Mr. Rao contended that section 526(2) makes the winding up subject to the court's supervision, as if it was a compulsory winding up by the order of the court. The court, according to him, can exercise all other powers which it might exercise in the case of a compulsory order. But this contention, too, leads Mr. Rao nowhere. Compulsory winding up is dealt with in Chapter II of Part 7 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion be increased. Mr. Rao contended that it was a very hard case, especially as the liquidator has been working since 1969. The total assets of the company to be realised amount to Rs. 27 lakhs. The liquidator has already filed three suits on the original side of this court for the recovery of a sum of more than Rs. 10 lakhs. The liquidation proceedings are likely to continue for a considerable time. It was, therefore, a fit case, said Mr. Rao, for the grant of an increase in the remuneration. But, as has already been observed, there is a complete and absolute bar against an increase in the liquidator's remuneration, even in a genuine case. It may be a case of casus omissus, but the court is not privileged to add to or to vary the langu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
