Disposed

Nikhil Morsawala v. Official Liquidator for Core Education and Technologies Ltd.

Bombay HC17 Jul 2018CA/94/2018

Case brief

AI extract

What is this about?

The court passed orders permitting an ex-director to engage counsel for the company in liquidation, subject to strict conditions regarding appointment, fee payment, consent terms, indemnity, and reporting to the Official Liquidator.

What did the court decide?

Permitted applicant to engage a lawyer to represent the company in liquidation proceedings subject to undertaking of fees, indemnity, and reporting.

Nikhil Morsawala Vs Official Liquidator for Core… — Insolvency and Bankruptcy | Bombay HC (2018)

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904.CA-94-2018.doc

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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COMPANY APPLICATION NO.94 OF 2018

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COMPANY PETITION NO.926 OF 2014

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Nikhil Morsawala ….Applicant IN THE MATTER BETWEEN : Credit Suisse Finance (India) Pvt. Ltd. ….Petitioner Vs.

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Core Education & Technologies Ltd. ….Respondent

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Ms. Anuja Bhansali I/b. M/s. Raval-Shah and Co. for applicant. Mr. Nikhil Morsawala, applicant (ex-director of the company) present in person.

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Mr. Ashutosh Ghare, Ex-CEO of company present. Mr. Vishwas Deo I/b. Phoenix Legal for original petitioner. Mr. Mahendhar Aithe, Company Prosecutor for Official Liquidator present.

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CORAM : K.R.SHRIRAM, J. DATE : 17^th JULY 2018

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P.C.:

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1 Prayer clause – (b) was kept pending yesterday. Applicant has filed further affidavit cum undertaking affirmed on 17^th July 2018. Applicant is also present in Court and is identified by Ms. Bhansali, advocate instructed by M/s. Raval-Shah and Company.

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2 Applicant – Nikhil Morsawala and Mr. Ashutosh Ghare, who are present in Court, undertake that (a) any advocate engaged by them will be appointed only in consultation with Official Liquidator; (b) the fees and expenses of the advocate will be paid directly by them and the advocate or applicant will not look to Official Liquidator for payment of fees or

Gauri Gaekwad

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reimbursement of any expenses; (c) the Vakalatnama for the advocate can be signed by Official Liquidator; and (d) any instructions to the advocate will be given only through the office of Official Liquidator or if any communication is sent directly to the advocate, it will be marked in copy to Official Liquidator and if any consent terms have to be signed or is proposed to be signed in any matter, that will be only through the office of Official Liquidator.

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3 In view of the undertaking given by applicant – Nikhil Morsawala and Mr. Ashutosh Ghare, the following order is passed :

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(a) applicant is permitted to engage a lawyer to represent the company in liquidation in the litigations, a list whereof is at Exhibit “A” to the affidavit in support of the application, which is at Exhibit-1 to the additional affidavit of applicant affirmed on 18^th June 2018;

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(b) the advocate will be identified by applicant and appointed by Official Liquidator;

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(c) the fees and expenses including Court fees, if any, to be paid by applicant and the advocate or applicant shall not look to Official Liquidator for payment of fees or reimbursement of expenses;

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(d) no consent terms or concession will be made in any of the matter unless there is a prior approval in writing from Official Liquidator;

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(e) any decree obtained or any payment received in any matter will be paid over/handed over to Official Liquidator;

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(f) applicant shall indemnify and keep indemnified Official Liquidator harmless against any claim or loss or damages that may be caused to Official Liquidator for himself or to

Gauri Gaekwad

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the creditors, if any prejudice is caused due to any negligence on the part of applicant.

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(g) After every hearing in any of the matter, a communication will be sent to Official Liquidator not later than two days of the date of hearing of the matter giving status of the order and what transpired on that date. A copy of the order passed will also be provided promptly. It is clarified that even if the matter does not get called out though listed in the cause list or is simpliciter adjourned, still report will have to be sent to Official Liquidator not later than two days of the date of hearing of the matter.

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(h) Application accordingly disposed.

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Gauri Amit Gaekwad

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Digitally signed by Gauri Amit Gaekwad Date: 2018.07.19 18:48:24 +0530

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(K.R.SHRIRAM, J.)

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Gauri Gaekwad

Nikhil Morsawala v. Official Liquidator for Core Education and Technologies Ltd.

Case brief

What is this about?

What did the court decide?

Nikhil Morsawala v. Official Liquidator for Core Education and Technologies Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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Nikhil Morsawala Vs Official Liquidator for Core Education and Technologies Ltd.

Nikhil Morsawala Vs Official Liquidator for Core Education and Technologies Ltd.