9911796707
TMI Blog2008 (1) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... ections are issued to file affidavits, reports and/or to produce records. Application rejected. X X X X Extracts X X X X X X X X Extracts X X X X ..... , in C. P. No. 144 of 2001 SUL was ordered to be wound up. By another order dated January 2, 2002, in C. P. No. 140 of 2001 SWL was ordered to be wound up by this court. The SCL is a sister concern of these two companies. Therefore, this court suo motu passed orders on June 7, 2006, appointing the official liquidator attached to this court as provisional liquidator. The applicant alleges that by reason of section 44 of the Act, the official liquidator became the liquidator of SUL and SWL also. Be that as it is the official liquidator allegedly took into possession 250.00 acres of land, leaving the other extent of land to be identified and surveyed with the help of the Revenue Department. The official liquidator filed C.A Nos. 568 and 569 of 2006 for direction to MRO and valuation of the same through approved surveyor. Another application C.A. No. 570 of 2006 was filed to sell the land after survey and valuation. While these applications are pending consideration, this court passed orders dated June 30, 2006 in C.A. No. 570 of 2006 appointing a committee of two advocate commissioners, M/s. M. Jagannadha Sarma and M. Anil Kumar, for taking up sale of assets as ordered by this court. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inary objection regarding maintainability of C. A. (SR) No. 5881 of 2007. He contends that though the official liquidator is appointed by the Central Government and though for the purpose of service conditions and disciplinary control, the official liquidator is subordinate to the Central Government and he has no independent existence in so far as winding up of companies is concerned. The official liquidator has to act in obedience to and in accordance with the directions issued by the company court. He cannot have any independent existence in so far as winding up matters are concerned and, therefore, he cannot file such an application without leave of the company court. In so far as merit of the application is concerned, he submits as follows. Initially, the official liquidator was appointed as liquidator/provisional liquidator of the three companies. As the official liquidator did not show any progress nor he filed proper applications and status reports before this court even after lapse of four years after the winding up orders in respect of SUL and SWL, this court appointed advocate commissioners for expeditious disposal of part of the lands and for inviting claims of the depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r for this court to go into the second question. Sections 448 to 453 of the Act deals with the official liquidators. The official liquidator is appointed by the Central Government as a whole-time officer and he shall be attached to each High Court, if there is sufficient work for a whole-time officer. Section 449 of the Act provides that on a winding up order being made in respect of a company, the official liquidator shall by virtue of his office become the liquidator of the company. These provisions cannot be read in isolation nor these provisions dilute or diminish inherent powers of the company court which are saved by virtue of rule 9 of the Rules which are promulgated by the Supreme Court in exercise of powers under section 643 of the Act. Section 490 of the Act enables the company opting for voluntary winding up to appoint a liquidator ignoring the official liquidator attached to this court. Whatever be the situation, the liquidator cannot act independently. He is always accountable to the company court and subject to such directions as may be issued, the official liquidator is bound to obey the orders of the company court. A reference to sections 455, 457 and 458 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry would not be required because the official liquidator attached to this court would be filing an affidavit to bring the facts and circumstances on record and the Central Government would not be in a position to vet any affidavit in such case. The ground or justification for not filing affidavit within time therefore is misconceived and unsustainable. In conclusion, this court holds that the official liquidator has no locus standi nor power to file such application to recall earlier order. The official liquidator cannot even file an appeal against the order earlier passed by this court appointing advocate commissioners as liquidators without leave of the court. On this ground alone this application is liable to be dismissed. In so far as contempt proceedings initiated against the official liquidator are concerned, non-compliance with the orders of this court dated September 28, 2007, is ex facie contempt of the court. But the official liquidator has appeared and expressed unconditional apology before this court. There fore, he can be let off with a warning that in future he should strictly com ply with the orders of this court as and when directions are issued to file affidavits, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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