Allowed

Official Liquidator of v. Nil

Karnataka HC18 Mar 2021CA/94/2021

Case brief

AI extract

What is this about?

The Court allowed the application for dissolution of M/s. Movers Pvt. Ltd. under Section 481 of the Companies Act, 1956, noting that the winding up was complete with no objections received. The Court granted permission to transfer funds for estate expenses and reserved liberty to proceed against directors under Section 543.

What did the court decide?

Order to dissolve M/s. Movers Pvt. Ltd. Permission granted to transfer funds to Estate and Establishment Fund Account. Liberty reserved to initiate proceedings against directors.

Official Liquidator of Vs Nil — Karnataka HC (2021) — LawSathi Research

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18^TH DAY OF MARCH, 2021

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BEFORE

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THE HON’BLE MR. JUSTICE S. SUNIL DUTT YADAV

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COMPANY APPLICATION NO.94/2021 IN

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COMPANY PETITION NO.20/1988

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BETWEEN:

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OFFICIAL LIQUIDATOR OF M/S. MOVERS PVT. LTD. (IN LIQN.), ATTACHED TO HIGH COURT OF KARNATAKA, CORPORATE BHAVAN, NO.26-27, 12^TH FLOOR, RAHEJA TOWERS, M.G. ROAD, BENGALURU - 560 001. … APPLICANT

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(BY SRI. SHRISHAIL NAVALGUND, ADVOCATE FOR OL)

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AND:

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NIL … RESPONDENT

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THIS COMPANY APPLICATION IS FILED UNDER SECTION 481 OF THE COMPANIES ACT, 1956 READ WITH RULE 9 OF THE COMPANIES (COURT) RULES 1959, PRAYING TO DIRECT THAT M/S. MOVERS PVT. LTD., SHALL STAND DISSOLVE UNDER SECTION 481(1) OF THE COMPANIES ACT, 1956.

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THIS COMPANY APPLICATION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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Memo dated 17.03.2021 which contains details of publication of notice inviting objections for dissolution carried out by the Official Liquidator, is taken on record.

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The Official Liquidator has filed the application seeking to dissolve M/s. Movers Private Limited invoking Section 481 of the Companies Act read with Rule 9 of the Companies (Court) Rules.

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It is submitted that the company was ordered to be wound up by order dated 01.09.1989. It is stated that the assets of the company have been sold by the Official Liquidator with the permission of the Court and the sale consideration of Rs.42,00,000/- has been recovered. It is further submitted that the claims have been invited by way of public notice and the claims received have been adjudicated and the Official Liquidator has been permitted vide order dated 13.04.2005 to declare the dividend to the sole secured creditor and 68 workmen and accordingly, dividend has been paid. It is further submitted that the

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funds position of the company is reflected in the table at paragraph No.10 of the application.

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Permission is sought to transfer the available

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funds to the 'Estate and Establishment Fund Account' to be utilised for expenses including audit fee, future income tax payments, if any and other incidental expenses and it is submitted that it is impractical to declare additional dividend in light of the amount available being only Rs.61,578/-. Permission sought for is granted.

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It is further submitted that advertisement was

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taken out by inviting objections by way of publication on 20.02.2021 and as regards the said advertisement, no objections have been received. Accordingly, it is submitted that the Official Liquidator has taken all steps as are practical relating to the winding up of the affairs of the company in liquidation and that all known assets of the Company has been put up for sale and sale proceeds that have been recovered have been distributed to the creditors.

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It is submitted that in light of the above, there are no further steps called for to pursue the winding up process.

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Taking note of the contents of C.A.94/2021 and also noticing that no objections have been received pursuant to the publication made by the Official Liquidator as noticed above, the relief sought for appears to be just and fair and accordingly, M/s. Movers Private Limited, having its registered office at Lakshminarayana Complex, No.10/1, Palace Road, Bangalore 560052, is ordered to be dissolved. A copy of this order be filed with the Registrar of Companies in accordance with the Companies (Court) Rules.

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Insofar as permission not having been granted to close the proceedings under Section 543 of the Companies Act as against the directors, the Official Liquidator is reserved liberty to initiate proceedings as per law against the directors under Section 543 of the Companies Act.

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Accordingly, C.A.94/2021 is disposed off.

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Sd/-

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JUDGE

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Official Liquidator of v. Nil

Case brief

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Official Liquidator of v. Nil

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