Allowed

Sidco Aiema Tower Welfare v. the Official Liquidator

Madras HC8 Apr 2011COMP.A/173/2011

Case brief

AI extract

What is this about?

The High Court directed the Official Liquidator to immediately pay Rs. 25,000/- to the applicant, who was the successful bidder's representative in a property sale involving a liquidated company. The Liquidator was also directed to include the applicant as an unsecured creditor for a balance of Rs. 75,000/- recoverable from company assets.

What did the court decide?

Directed Official Liquidator to pay Rs. 25,000/- within three days and include applicant as unsecured creditor for Rs. 75,000/-.

Sidco Aiema Tower Welfare Vs the Official… — Labour and Industrial Disputes | Madras HC (2011)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 08/04/2011

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CORAM

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THE HON'BLE MR.JUSTICE VINOD K.SHARMA

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C.A.No.173 of 2011 in C.P.No.125 of 2000

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ORDER :

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VINOD K.SHARMA.J.,

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This application has been moved by the petitioner, claiming arrears of maintenance charges of flat, which was in occupation of the company in liquidation i.e. M/s. Kunal Engineering Company Limited.

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This application has been filed in view of the order passed by this Court in C.A.No.1309 of 2007 in C.P.No.125 of 2000.

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In pursuance to the permission granted to the Official Liquidator, to sell the immovable property of the company in liquidation, M/s.A.V.Power Green company was declared a successful bidder, in auction conducted on 21.12.2009 with respect to the Flat at Module No.314, AIEMA Towers, 1st Main Road, SIDCO Industrial Estate, Ambattur, Chennai � 58.

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The Hon'ble Single Judge of this Court took note of the fact that as per evaluation report, a sum of Rs.1,00,000/- (Rupees One Lakh only) was payable towards maintenance and other common expenses to the association till June 2009. The outstanding dues in respect of municipal tax, land tax and property tax of Rs.30,301/- till 2008-2009, was also assessed.

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The operative part of the order passed by this Court reads as under:

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"2. Considering the expenses to be given to the association, even though the property was sold in as is where is condition, on hearing the learned counsel for the purchaser, this Court directs the purchaser to deposit a sum of Rs.25,000/- towards the dues and balance sum of Rs.75,000/- to be paid by the Official Liquidator. On payment of the sum of Rs.25,000/- the Official Liquidator shall hand over the vacant possession along with original documents and issue a sale certificate to the owner within a period of ten days from today. All municipal arrears have to be paid only by the purchaser. The electricity charges is directed to be restored on payment of necessary charges by the successful purchaser."

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The reading of the order shows that this Court did not fix liability of Rs.1,00,000/- (Rupees One Lakh only) on the purchaser, but directed the purchaser to pay only Rs.25,000/- (Rupees Twenty Five Thousand only) to the applicant, while permitting it to recover balance Rs.75,000/- (Rupees Seventy Five Thousand only) from the Official Liquidator.

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It is not in dispute that a sum of Rs.25,000/- (Rupees Twenty Five Thousand only) was paid by the purchaser to the Official Liquidator. However, for the reasons best known to the Official Liquidator, he has withheld this amount without any reasonable cause. The Official Liquidator was required to forthwith remit to the applicant this amount of Rs.25,000/- deposited for payment to the applicant, as per orders of this Court.

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As regards liability of Rs.75,000/- (Rupees Seventy Five Thousand only), on the Official Liquidator, is concerned, it can only be paid by the Official Liquidator from the assets of the company as per the Act.

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Therefore, it will be open to the applicant to file a claim with the Official Liquidator for recovery of amount of Rs.75,000/- (Rupees Seventy Five Thousand only). In absence of any claim petition, it is the duty of the Official Liquidator to take this into consideration, in view of the specific order passed by this Court, holding applicant to be entitled to this amount.

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VINOD K.SHARMA,J.,

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Consequently, this application is disposed off by directing the Official Liquidator to immediately pay a sum of Rs.25,000/- (Rupees Twenty Five Thousand only) to applicant, in any case not later than three days of receipt of certified copy of this order. The Official Liquidator is further directed to include the applicant as unsecured creditor for a sum of Rs.75,000/- (Rupees Seventy Five Thousand only). This amount be paid as per provisions of the Companies Act.

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08.04.2011 ar Index: Yes Internet: Yes Note: Issue order copy on 19.04.2011.

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C.A.No.173 of 2011 in C.P.No.125 of 2000

Sidco Aiema Tower Welfare v. the Official Liquidator

Case brief

What is this about?

What did the court decide?

Sidco Aiema Tower Welfare v. the Official Liquidator

Case brief

What is this about?

What did the court decide?

What the court decided

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