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TMI Blog2008 (12) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Company Court, it will be untenable to contend that the directions given by the Company Court at the time of appointment of the provisional liquidator are not in conformity with law. Thus the sole contention raised by the appellant is therefore, without any substance and the appeal is dismissed - COMPANY APPEAL NO. 18 OF 2003 (O&M) - - - Dated:- 15-12-2008 - J.S. KHEHAR AND K. KANNAN, JJ. Hari Om Attri, R.N. Raina and Sanjeev Ghai for the Appearing Parties. ORDER K. Kannan, J. (I) Scope of Enquiry in Appeal 1. The issue involved in the Company Appeal is whether the Company Court exercising jurisdiction in an application under sections 433, 434 and 439 of the Companies Act, has the power to appoint a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calculated shall vest. This direction was issued on a perusal of the pleadings and with the availability of prima facie material that the funds of the Company were transferred to other companies formed by one of the Directors Sh. Rajesh Sayal. The Company Court also recorded satisfaction on the basis of materials placed before it that the affairs of the Company, including assets in the names of other companies which had been created with the funds collected by the Company was required to be investigated and that such systematic investigation would bring out the extent of assets owned by the Company, legal and valid, so as to make available the properties for discharge of debts of the investors. While so regarding the Company Court had al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order appointing by him or by a subsequent order; but otherwise he shall have the same powers as a liquidator." The extensive powers of the liquidator are delineated under section 457 of the Companies Act which includes under section 457(1)( c ) "power to sell immovable or movable property and actionable claims of the company by public auction or provide contract, with power to transfer the whole thereof to any person or body corporate, or to sell the same in parcels." (V) Extent of Directions that the Company Court could pass 5. Even apart from the powers of the liquidator which are co-extensive with the power of the provisional liquidator, the Court itself has the power under section 477 at the time of appointment of the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of 28 days after the receipt of the application or such extended period as may be allowed by the Court, given notice to the applicant that he intends to apply to the Court for leave to disclaim and in case the property is a contract, if the liquidator, after such application aforesaid, does not within the said period or extended period disclaim the contract, he shall be deemed to have adopted". This provision, while fastening the liquidator to disclaim certain properties, makes possible for any third party from approaching the liquidator himself staking his claim to the property which is taken possession of by the liquidator or in respect of which proceedings are taken for sale. Having regard to the scheme of the Companies Act protecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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