Disposed

Re-in the Matter of M/S Electronic Trade & Technology Dev. Corpn. Ltd. v. .....

Delhi HC20 Nov 2024CO.PET./422/2000

Case brief

AI extract

What is this about?

The Delhi High Court permitted the Official Liquidator to deposit Rs. 55.14 lakh with the RBI and close the company's accounts under Section 481 and 555 of the 1956 Act, effectively ending liquidation proceedings for ETTDC.

What did the court decide?

Permission granted to deposit Rs. 55,14,851/- with RBI within 15 days and close the books of accounts to dissolve the company; winding up petition disposed accordingly.

Re-in the Matter of M/S Electronic Trade… — Insolvency and Bankruptcy | Delhi HC (2024)

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$~C-8

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

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- CO.PET. 422/2000

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RE-IN THE MATTER OF M/S ELECTRONIC TRADE & TECHNOLOGY DEV. CORPN. LTD. .....Petitioner Through: None versus ..... .....Respondent Through: Ms. Ruchi Sindhwani, Senior Standing Counsel with Ms. Megha Bharara, Advocates for OL.

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CORAM: HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA O R D E R

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% 20.11.2024 CO.APPL. 1014/2024

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An Application under Section 481 of the Companies Act, 1956 has been filed on behalf of the Official Liquidator for deposit of compensation of Rs. 55,14,851/- towards the claim of 6 creditors with the Reserve Bank of India, under Section 555 of the Companies Act, 1956 and to permit the Official Liquidator to close the books of accounts of the Company and that the Company be dissolved under Section 481 of the Companies Act, 1956 . 2. It has been detailed in the Application that vide Order dated 09.05.2005, the Official Liquidator was appointed for Electronic Trade & Technology Development Corporation Limted (hereinafter referred to as the Company-in-Liqn.) . The ex-Directors of the Company, were Sh. S.N. Jindal, Sh. Y.S. Bhave, Sh. R.C. Chopra and Sh. P.K. Datta.

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The above liquidation was of a Government Company and all the ExDirectors were Senior Officers of the Government and had claimed to be

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/12/2024 at 11:59:11

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part-time Directors of the Company and were not aware of the affairs of the Company. They did not file their statement of affairs and did not record their Statement except Sh. P.K. Datta, who gave a statement on 25.07.2005 and no material information could be furnished by him.

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The proceedings under Section 454 of the Companies Act, 1956 , were taken up but in response to the Letter written to the Ministry of Information and Technology, no relevant information could be obtained. There were various assests, movable and immovable, of the Company as detailed in Paragraph 5 of the Application, which were taken in possession and were auctioned in terms of Orders dated 31.07.2006, 08.03.2007, 26.04.2007, 06.12.2007, 25.08.2011 and 15.11.2018 and the possession of the property was accordingly handed over to the auction purchasers.

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In compliance of Order dated 19.07.2006, Claims were invited from the creditors of the Company by publication in various newspapers “Hindustan Times” in Patna, Chandigarh, Bhopal, Kolkata Delhi, Lucknow and Ranchi Editions on 07.11.2006, ‘Kannada Prabha’ Bangalore Edition, ‘Tel. J.D. Patrika’, Vaartha, Hyderabad Edition, ‘Malaya Manorma’ Kochi Edition, ‘Loksatta’, Mumbai Edition, ‘Divya Bhaskar’ Ahmedabad Edition and ‘Sangbad-Patrika’ Kolkata Edition.

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In response to the Notice, 24 Claims were received, out of which 22 were admitted and two were rejected. Subsequently, some more claims were received though after a delay, the Claims have been disbursed pursuant to the Orders of this Court. Secured creditors have been paid full amount while the unsecured creditors have been paid on pro-rata basis depending upon the funds that were available. The details are as under :

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/12/2024 at 11:59:11

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S.NO.	NAME	AMOUNT ADMITTED	STATUS
1.	RPF Commissioner	Rs.95,294/-	Rs.95,294/- to be disbursed. *Not disbursed as* *Bank details* *not* *provided.*
2.	P.N.B. (Secured Creditor)	Rs.64,05,40,470/- (Rs.12,20,38,986.85) admitted as secured creditoro and Rs.51,85,01,484/- admitted as unsecured creditor)	Rs.12,20,38,986.85 Disbursed (towards secured moebale assets) Unsecured amount of Rs.1,04,50,044/- paid on pro-rata basis.
3.	Syndicate Bank	Rs.1,30,14,61,672/- (Rs.26,04,75,684/- admitted as secured creditor and Rs.104,10,85,989/- admitted as unsecured creditor)	Rs.26,04,75,684/- Disbursed (towards secured moveable assets) Unsecured amount of Rs.2,15,96,759/- paid on pro-rata basis.
4.	Workers (2) 1. Sh. Munni Lal 2. Sh. Biwa Goswami	Rs.29,86,875/-	Rs.7,08,060/- disbursed @23.70%. Balance amount of Rs.22,78,815/- to be disbursed. *Not disbursed as* *Bank details not* *provided.*
5.	Sh. V.S.R.Mohan Rao (Preferential)	Rs.68,210/-	Rs.20,000/- disbursed (U/s 530) Un-secured

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			amount Rs.48,210/- t disbursed. *disbursed* *Bankk details* *provided.*	of o be *Not* as *not*
6.	Jyotishwar Chakravaty (Employee)	Rs.27,64,198/-	Rs.20,000/- disbursed 530) Un-secured amount Rs.27,44,198/- be disbursed*_. _ _disbursed as _ details* provided.**	(U/s of to *Not* *Bank* *not*
7.	Surma Trading (un-secured creditor)	Rs.2,95,735/-	Rs.55,713/- disbursed on rata basis.	pro-
8.	SARC IT solution (un-secured creditor)	Rs.75,000/-	Rs.12195/- disbursed on rata basis.	pro-
9.	Pinnacle Computers (un-secured creditor)	Rs.50,000/-	Rs.8,130/- disbursed on rata basis.	pro-
10.	Central Warehousing Corporation (un- secured creditor)	Rs.4,00,921/-	Rs.65,189/75 disbursed on rata basis.	pro-
11.	Punjab Communication (un- secured creditor)	Rs.2,00,469/-	Rs.32,596/- disbursed on rata basis.	pro-
12.	SPG (un-secured creditor)	Rs.72,648/-	Rs.11,812/- disbursed on rata basis.	pro-
13.	V.R. Kishore (un- secured creditor)	Rs.38,783/-	Rs.6,306/- disbursed on rata basis.	pro-
14.	Tapesh Singhal (un-	Rs.4,94,575/-	Rs.93,173/-

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	secured creditor)		disbursed rata basis.	on pro-
15.	Data Group (un- secured creditor)	Rs.12,57,856.50	Rs.2,68,85 disbursed rata basis.	4/- on pro-
16.	Badal Chand Surma (un-secured creditor)	Rs.5,48,000/-	Rs.89,104 disbursed rata basis.	/- on pro-
17.	R. Hanumantha Charvulu (un-secured creditor)	Rs.49,010/-	Rs.7,969/- disbursed rata basis.	on pro-
18.	Carrier Computers (un-secured creditor)	Rs.50,000/-	Rs.8,130/- disbursed rata basis.	on pro-
19.	Swapan Bhatacharya (un-secured creditor)	Rs.12,55,884/-	Rs.2,04,20 disbursed rata basis.	6/- on pro-
20.	HDFC (un-secured creditor)	Rs.35,31,534/-	Rs.5,74,22 disbursed rata basis.	7/- on pro-
21.	Dr. Ambedkar Foundation, Ministry of Social Justice and Empowerment, Government of India (un-secured creditor)	Rs.1,70,76,173/-	Rs.3,49,28 paid on basis. *Not disb* *Bank det* *provided.*	7/- to be pro-rata *ursed as* *ails not*
22.	SCOPE (un-secured creditor)	Rs.10,98,06,069/-	Rs.24,38,3 paid on basis.	46/- pro-rata
23.	N.C. Benerjee		Rejected
24.	Sh. D. Damodar Rao		Rejected

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It is further submitted that five creditors mentioned at Serial No. 1, 4, 5, 6 and 21 failed to provide their bank details and indemnity bond,

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therefore, the amounts could not be disbursed to their admitted claimants. Therefore, permission is sought to deposit Rs.55,14,851/- for the claims of these creditors with the RBI under Section 555 of the Companies Act, 1956 . It is further submitted that after deducting the liquidation expenses towards audit fee, Government Commisison, Tax Liability, Professional fee and administration expenses to the tune of Rs.36,25,878/- the fund position of the Company as on date is NIL. It is, therefore, submitted that the requisite permission be granted for deposit of money with the RBI and further, to close the Books of Account of the Company, which may be dissolved under Section 481 of the Companies Act, 1956 .

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Submissions heard and record perused.

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In light of the submissions made and considering that the funds position of the Company has become NIL after adjusting the amounts due to secured and unsecured creditors and administrative expenses, requisite permission is granted for closing the Books of Accounts and the liquidation proceedings came to an end. The amount of Rs.55,14,851/- be deposited with the RBI within 15 days, as per Section 555 of the Companies Act, 1956 . 10. The Application is disposed of accordingly.

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The intimation be also sent to the ROC within 30 days by the Official Liquidator.

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CO.PET. 422/2000

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A Petition under Section 433 and 434 of the Companies Act, 1956 has been filed on behalf of the Petitioners, for winding up of the Company.

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In view of the Order passed in the Application bearing CO.APPL. 1014/2024, the Petition is disposed of accordingly.

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/12/2024 at 11:59:11

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The date already fixed i.e. 19.03.2025 stands cancelled.

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NEENA BANSAL KRISHNA, J

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NOVEMBER 20, 2024/RS

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Re-in the Matter of M/S Electronic Trade & Technology Dev. Corpn. Ltd. v. .....

Case brief

What is this about?

What did the court decide?

Re-in the Matter of M/S Electronic Trade & Technology Dev. Corpn. Ltd. v. .....

Case brief

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