Allowed

Official Liquidator of Various Companies (in Liquidation) v. Na

Bombay HC10 Oct 2024OLR/112/2024

Case brief

AI extract

What is this about?

The court allowed the Official Liquidator's report seeking permission to engage drafting counsels and associates with specified qualifications, define service conditions including conflict-of-interest restrictions, establish an interview-based selection panel including a former High Court Judge, and authorize the publication of advertisements for appointments.

What did the court decide?

Official Liquidator permitted to engage fifteen drafting counsels/associates on specified terms; public notice to include interview by former High Court Judge and conflict-of-interest restriction; pra

Official Liquidator of Various Companies (in… — Company and Corporate | Bombay HC (2024)

¶1

OLR-112-2024.doc

¶2

Digitally signed by KANCHAN KANCHAN PRASHANT PRASHANT DHURI DHURI Date: 2024.12.14 17:33:37 +0530

¶3

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

¶4

OFFICIAL LIQUIDATOR’S REPORT NO. 112 OF 2024

¶5

In the matter of the Companies Act, I of 1956 ; And

¶6

In the matter of Various Companies (In Liquidation)

¶7

Mr. Rushabh Sheth, Advocate for the Official Liquidator. Mr. Chandan Kumar, Official Liquidator, present.

¶8

CORAM : ABHAY AHUJA, J. DATE : 14^th DECEMBER 2024

¶9

P.C. :

¶10

This Official Liquidator’s Report has been filed seeking the

¶11

following :

¶12

(a) In view of Para (7) to (9) of this report, whether this Hon’ble Court may be pleased to permit the Official Liquidator to engage the services of fifteen (15) Drafting Counsels/Associates for a period of 12 months on the terms and conditions annexed as Exhibit ‘E’ to this report and the eligibility criteria mentioned in para (10).

¶13

(b) If prayer clause (a) is affirmative, whether this Hon’ble Court be pleased to permit the Official Liquidator to pay the remuneration of Rs.50,000/- p.m. to each Drafting Counsel / Associates subject to TDS, and applicable taxes, if any, out of Company paid Salary Reserve Fund Account.

¶14

Kanchan Dhuri 1/6

¶15

OLR-112-2024.doc

¶16

(c) If prayer clause (a) is affirmative and in view of Para (9) of this report, whether this Hon’ble Court may be pleased to permit the Official Liquidator to fill any vacancy created upon resignation / termination of any Associate / Drafting Counsel on the same terms and conditions as mentioned in ‘Exhibit-E’ above.

¶17

(d) In view of Para (11) of this report, whether this Hon’ble Court may be pleased to permit the Official Liquidator to publish the notice inviting applications for the Drafting Counsels/Associates on the websites of Ministry of Corporate Affairs, and on the websites of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Costs Accountants of India and on Bar Council of Maharashtra & Goa.

¶18

(e) In view of para (16) of this report, whether this Hon’ble Court may be pleased to permit the Official Liquidator to employ services of two advocates with experience of at least ten years in conducting trial in the Criminal Cases to assist Official Liquidator in the conduct to the trial of complaint cases which are pending before this Hon’ble High Court and other courts at the rate of fees structure payable to various category of Central Government Counsel as approved by Ministry of Law & Justice, Department of Legal Affairs Office Memorandum No. 26(1)/2015/Judl. Dated 1^st October, 2015 as revised from time to time. Hon’ble Court may be pleased to permit the Official Liquidator to pay the fees to advocates subject to TDS and applicable taxes, if any, out of Company paid Salary Reserve Fund Account.

¶19

Kanchan Dhuri 2/6

¶20

OLR-112-2024.doc

¶21

On 28^th November 2024, the following order was passed :

¶22

“1. This Official Liquidator’s Report seeks permission of this Court for various appointments of lawyers, Chartered Accountants, to call for advertisements and to conduct interviews and to appoint them to assist the Company Court.

¶23

After a brief discussion, Mr. Sheth, learned Counsel for the Official Liquidator, seeks some time to take appropriate instructions in the matter.

¶24

Accordingly, at his request, list on 24^th January 2025. Liberty to apply.”

¶25

Thereafter, on 6^th December 2024, the matter has been mentioned and in view of the urgency expressed, the matter has been listed today.

¶26

It is observed that the Official Liquidator’s Report is seeking appointment of Drafting Counsel/Associates. Paragraph 10 has specified the qualification required for the Drafting Counsel as well as the Associates which include Chartered Accountant, Company Secretary and Costs & Management Accountant. It is observed that earlier by notice dated 28^th March 2023, the Official Liquidator had invited applications for empanelment of Advocates/Counsel on the panel of the Official Liquidator on a monthly retainer basis for a period of twelve months from the date of appointment. A perusal of the same

¶27

Kanchan Dhuri 3/6

¶28

OLR-112-2024.doc

¶29

suggests that the minimum qualification/experience that had been stipulated was LL.B. with minimum experience of five (05) years standing at the Bar preferably with knowledge of Corporate Laws.

¶30

In my view, since the Drafting Counsel/Chartered Accountant/Company Secretary/Costs & Management Accountant would aid and assist the Counsel/Advocate, who appear in Court, the minimum qualification/eligibility/experience should be minimum of three years preferably with knowledge of Company Law/Corporate Laws. Additionally, appointment of the Drafting Counsel/Chartered Accountant/Company Secretary/Costs & Management Accountant should be subject to a condition that during the period of empanelment/retainership with the Official Liquidator’s Office, they will not advise any party or act in any case against the Official Liquidator. That subject to the said restriction, the Drafting Counsel/Chartered Accountant/Company Secretary/Costs & Management Accountant can take up private brief/assignment which should not interfere with the efficient discharge of his/her duties as Drafting Counsel/Chartered Accountant/ Company Secretary/Costs & Management Accountant of the Official Liquidator.

¶31

In my view, the aforesaid additional terms are imperative to be added to the public notice inviting applications for Drafting

¶32

Kanchan Dhuri 4/6

¶33

OLR-112-2024.doc

¶34

Counsel/Chartered Accountant/Company Secretary/Costs &

¶35

Management Accountant.

¶36

Further, the selection process should also involve an interview of the candidates by an interview panel presided over by a former High Court Judge and two Senior Advocates, one from the Original Side of this Court and one from Appellate Side of this Court.

¶37

Subject to the aforesaid, the Official Liquidator’s Report is allowed in terms of prayer clauses (a) to (d) as above. 9. Prayer (e) with respect to Advocates to be appointed on the panel for conduct of criminal cases is also allowed, subject to the Applicant preferably having knowledge of Company Law/Corporate Laws and subject to a condition that during the period of empanelment/retainership with the Official Liquidator’s Office, they will not advise any party or act in any case against the Official Liquidator. That subject to the said restriction, the said Advocates can take up private brief/assignment which should not interfere with the efficient discharge of his/her duties as Advocate of the Official Liquidator. The said selection also to be by way of an interview process as noted in paragraph 7 above.

¶38

The Official Liquidator to give wide publicity to the notice/advertisement inviting applications and also publish the notice/

¶39

Kanchan Dhuri 5/6

¶40

OLR-112-2024.doc

¶41

advertisement of the aforesaid process at various stages not only in newspapers/Bar Associations notice boards but also on the website of the Ministry of Corporate Affairs as well as on the website of the Bombay High Court.

¶42

The Official Liquidator’s Report to accordingly stand disposed.

¶43

(ABHAY AHUJA, J.)

¶44

Kanchan Dhuri 6/6

Official Liquidator of Various Companies (in Liquidation) v. Na

Case brief

What is this about?

What did the court decide?

Official Liquidator of Various Companies (in Liquidation) v. Na

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

Shahnawaz Enterprises through Its Proprietor Amir Khan Suri vs Birla Estates

Viswanathan Durgadethan vs Mallika Gupta

Axis Bank Limited vs Sterling and Wilson Renewable Energy Limited

Aditya Birla Finance Limited vs Dhruv Wellness Ltd.

Munna R. Purthalppa vs Ramesh Harilal Mehta and Anr.

The Official Liquidator of Jaywant Chemicals Pvt. Ltd. (in Liquidation) vs Bombay Ammonia and Chemical Co. (Petitioner)