9911796707
TMI Blog1980 (3) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... any now in liquidation has attained a notoriety in respect of the road roller business which came up before Parliament and in the course of administration of the company in liquidation the matter came up before me from time to time and, in fact, the official liquidator in the course of liquidation has come to know for the first time about the said various suits and legal proceedings by or against the company including a suit being Suit No. 2028 of 1978 filed by the company on or about 1st September, 1967, before this High Court against the Union of India. The said suit involved a sum of Rs. 1,38,00,000. It also appeared in the course of the winding-up, and the official liquidator discovered, that the Union of India through the Director-Gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s advocate to conduct the suits and leave was accordingly granted by this court on 11th March, 1977, with a direction to the official liquidator to settle the fees of the said counsel at Delhi. It further appears that the official liquidator made a good number of correspondence with the said advocate at Delhi to charge reasonable professional fees considering the defendant-company being in liquidation and for the interest of the general creditors and contributories of the company and the said counsel agreed to accept Rs. 600 per suit as a special case. Thereafter it appears that nothing happened in the said suits and it is becoming inconvenient to conduct the said suits by the official liquidator at Delhi as enormous costs are being incur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd papers frequently for the purpose of disposal of the said suits and that will not ensure to the benefit of the creditors and contributories of the company as the company is utterly insolvent. Mr. S. Bandopadhyay appearing for the petitioner-company represented by the official liquidator has submitted the said facts before this court and also pointed out that the present application has been made pursuant to the direction of the court dated 10th March, 1978, having regard to the peculiar and difficult position the official liquidator has been put in and unnecessary expenses and delay is occurring in disposing of all the said suits. Mr. A. C. Law, appearing for the respondent-Union of India, submitted that as the Union of India has fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... winding-up proceedings, which is pending for the last 12 years, is not coming to an end as these suits are still pending. Further, all the papers, documents handed over by the ex-directors to the official liquidator are lying at Calcutta and the balance of convenience seems to me to be overwhelmingly in favour of the suits being tried by this court and that is exactly the purpose and object of section 446(3) of the Companies Act and the court should exercise that power in the present case where all the requirements of the said provision have been satisfied. If the court fails to do so, it will be really denying justice and the provisions of the Companies Act will be frustrated for expeditious disposal of winding-up matters and final dissolu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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