Allowed

The Official Liquidator, as the Provisional Liquidator of M/s. Everonn Education Limited v. Nil

Madras HC6 Nov 2020COMP.A/218/2020

Case brief

AI extract

What is this about?

In a company application regarding the liquidation of Everonn Education Limited, the court permitted the Official Liquidator to disburse funds to service providers for maintaining ongoing ICT projects approved by the court, thereby acceding to the prayer for expense incurrence.

What did the court decide?

Prayer to permit Official Liquidator to disburse Rs. 1,79,39,002 to service providers for AMC charges and incur related expenses from company funds allowed.

The Official Liquidator, as the Provisional Liquidator… — Company and Corporate | Madras HC (2020)

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Company Application No.218 of 2020 in CP No.375 of 2014

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Company Application No.218 of 2020 in

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CP No.375 of 2014

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M.SUNDAR.J.,

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Captioned Company Application has been taken out by a

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contributory qua 'Everonn Education Limited' (hereinafter referred to as 'said Company' for the sake of convenience and clarity) which is the Company which has gone into liquidation in the aforementioned 'Company Petition No.375 of 2014' (hereinafter main 'CP' for the sake of convenience and clarity), which is at the instance of a petitioning creditor. 2. Captioned company application has been taken out by

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'Official Liquidator attached to this Court' (hereinafter 'OL' for the sake of

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convenience and clarity) and learned 'Deputy Official Liquidator'

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(hereinafter 'Dy OL' for the sake of brevity) is before this Company Court

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in this Web hearing on a video conferencing platform on behalf of OL,

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who is the applicant herein.

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http://www.judis.nic.in

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Company Application No.218 of 2020 in CP No.375 of 2014

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Learned Dy OL submits that in and by an order dated

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29.08.2016 made in main CP, this Company Court appointed OL as

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Provisional Liquidator qua said Company and further directed OL to take charge of the assets of the said Company. Thereafter the manner in which winding up proceedings unfurled has been captured from paragraph 3 onwards in a 'report of the OL dated 18.06.2020' (hereinafter 'said report' for the sake of clarity), which has been filed in support of the captioned

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company application.

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What is of significance is, the ICT-Project was underway

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when said Company went into liquidation and this Company Court by an order dated 25.10.2016 made in Company Application Nos.924 to 926 of

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2016, directed the OL to continue with the ICT-Project. This is captured

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in paragraph-5 of the said report. Thereafter, another order dated

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Company Application No.218 of 2020 in CP No.375 of 2014

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20.04.2018 was made by this Company Court in Company Application

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No.801 of 2017 directing the Government of Gujarat to remit a specified

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sum of Rs.7,54,34,424/- to the OL within a specified period. This Court is

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now informed that this sum has since been remitted to the OL by the

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Government of Gujarat after making some deductions, details have been set out in the said report. In this regard, paragraphs 5 to 10 of said report are relevant and the same reads as follows:

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'5. That this Hon'ble Court by an order dated 25.10.2016 in C.A.Nos.924 to 926, directed the Official Liquidator to continue the ICT-Project of the company (in provisional Liquidation) at Gujarat and Rajasthan under the supervision of the Official Liquidator/the Project Manager and permitted the Official Liquidator to defray salaries and release

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moneys towards day to day expenditure incurred on continuation of the said two projects.

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That pursuant to the said direction of this

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Hon'ble Court, the Project Manager has engaged the services of co-coordinators/ employees as well as the following service providers to run the ICT Projects at Gujarat and Rajasthan.

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Company Application No.218 of 2020 in CP No.375 of 2014

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a. Precision Infomatic (M) Pvt. Ltd

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b. M/s.Apex Electronics and

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c. M/s.Bluemax Systems.

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That the Official Liquidator submits that the

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Government of Gujarat vide letter dated 03.02.2017 requested the Official Liquidator to extent the project at Gujarat upto February 2017. Accordingly, the project was extended as requested by the Government of Gujarat.

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That the Project Manager has submitted a letter of request to release the payment to the employees/staff (involved in the project at Gujarat and Rajasthan). The Official Liquidator, after obtaining permission of this Hon'ble Court has made the payments as detailed hereunder:

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*S.No.*	*Particulars*	*Amount paid (in* *Rs.)*	*Amount paid* *towards (in Rs.)*	Re	*marks*
1	796 Employees	38,67,818.00	Salary for the month of November 2016	100% 12.01.	paid on 2017
2	6 Employees	3,42,297.00	Salary for the month of November 2016	100% 24.01.	paid on 2017
3	645 (School Coordinators)	24,43,723.00	Salary for the month of December 2016	100% 12.09.	paid on 2017
4	35(State Project	6,63,730.00	Salaryfor the	50%	paid on

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Company Application No.218 of 2020 in CP No.375 of 2014

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S.No. Particulars Amount paid (in Amount paid Remarks
Rs.) towards (in Rs.)
Coordinators, month of 12.09.2017
Zonal December 2016
Coordinators,
Area Office and
Chennai
5 Precision 23,12,065.00 AMC charges Part payment
Infomatic (M) P (one of the made on
Ltd service provider) 23.12.2016
Due to paucity of funds the Official Liquidator was
unable to settle the entire amount due.
9. That this Hon'ble Court by an order dated
20.04.2018 made in C.A.No.801 of 2017 in C.P.No.375 of
2014 directed the Government of Gujarat to remit a sum
of Rs.7,54,34,424/-, to the Official Liquidator within a
period of four weeks from the date of receipt of the said
order. It was further directed that on receipt of the said
payment, the Official Liquidator shall file an application
for disbursement of the amount.
10. That the Gujarat Government had remitted a
sum of Rs.7,43,59,774/-, after deducting a sum of
Rs.10,74,650/- out of the total amount of Rs.7,54,34,424/-

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Company Application No.218 of 2020 in CP No.375 of 2014

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on 08.06.2018 towards the pending payments to the persons engaged in connection with ICT project in respect of invoices submitted by the Official Liquidator for quarter-20 i.e., September'2016 to November'2016.'

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The fund position of the Company and the payments
which have to be made to the service providers for the ICT-Project that
has been continued has been set out in paragraphs-12 and 13, which read
as follows:-
“12. That the Funds Position of the Company as
on 05.06.2020 is follows:
Cash - Nil
Bank - Rs. 43,649.50
Investment - Rs.8,31,00,000.00
-------------------------
Total Rs. 8,31,43,649.50
--------------------------
13. That since requisite amount was remitted by

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the Government of Gujarat, subject to approval of this Hon'ble Court, it is proposed to disburse the amount to

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Company Application No.218 of 2020 in CP No.375 of 2014

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service providers towards AMC charges as detailed below;

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*Sl.No.*	*Name of the* *Agency*	*Period*	*Amount* *claimed (in* *Rs.)*	*Amount* *already* *paid (in* *Rs.)* *Balance* *Amount* *payable (in* *Rs.)*
1	Precision Infomatic (M) Pvt Ltd	27.09.2016 to 26.12.2016	92,48,261	23,12,065 69,36,196
2	M/s.Apex Electronics	July 2016 to Dec 2016	36,23,256	---- 36,23,256
3	M/s.Bluemax Consultancy	Sep 2016 to Feb 2017	73,79,550	---- 73,79,550
				Total 1,79,39,002
	6. In the	aforesaid	backdrop, t	he captioned company

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application has been taken out with multi limbed prayers as culled out from judges summons, which read as follows:-

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'a) To take this report on record.

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b) To permit the Official Liquidator to disburse Rs.1,79,39,002/- (Rupees One Crore Seventy

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Nine Lakhs Thirty Nine Thousand and Two only) towards AMC charges to Precision Infomatic (M) Pvt Ltd, Apex Electronics and Bluemax Consultancy as

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Company Application No.218 of 2020 in CP No.375 of 2014

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detailed in para 13 of this report,

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d) To permit the Official Liquidator to incur

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the expenses, in connection with such disbursements from and out of the funds of the Company in

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liquidation, and

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e) To pass such order/s as this Hon'ble Court may deem fit and proper in the circumstances of the case.' (To be noted, learned Dy OL submits that a typographical error has been crept in after prayer limb (b) and next two limbs have been wrongly shown as 'd' and 'e' while it ought to have been shown as 'c' and 'd' respectively).

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This Court is informed by the learned Dy OL that salaries

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to the employees who coordinated the ICT-Project to the tune of Rs.88,49,521/-, which was directed to be paid vide orders made in

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Company Application No.213 of 2020 has since been paid. In this regard,

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a further report of OL dated 04.11.2020 has been filed and paragraphs-7

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Company Application No.218 of 2020 in CP No.375 of 2014

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and 10 of said report are relevant and the same read as follows:

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'7. That the Official Liquidator has filed

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C.A.No.213 of 2020 before the Hon'ble High Court, Madras for

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disbursement of salary to the employees who coordinated in the

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ICT projects as detailed below:

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S.No. Salary for No. of Amount Amount Amount to
month Employees due (in disbursed be
Rs.) (in Rs.) disbursed
(in Rs.)
1. December- 62 2,26,935 - 2,26,935
2016
2. December- 35 13,27,459 6,63,730 6,63,730
2016
3. January- 738 39,75,976 - 39,75,976
2017
4. February- 738 39,82,881 - 39,82,881
2017
TOTAL 95,13,251 6,63,730 88,49,521

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That it is submitted that in compliance of the order of

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this Hon'ble High Court, Madras dated 25.09.2020 in C.A.No.213 of 2020, the Official Liquidator has already issued

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Company Application No.218 of 2020 in CP No.375 of 2014

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cheque No.170765 dated 15.10.2020 for Rs.88,49,521/- along with details of employees to PNB, NSC Bose Road, Chennai and as per the information provided by the Bank, the amounts were credited to the ex-employees through RTGS.'

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In the light of the narrative thus far, this Court, having perused said report, having heard learned Dy OL, is satisfied that the multi limbed prayer in the captioned company application deserves to be acceded to as payments are to be made to service providers, who have coordinated the ICT-Project post liquidation also pursuant to orders of this Company Court.

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Therefore, captioned application is ordered acceding to prayer limbs (b) and the next limb which should have been shown as 'c' but erroneously shown as 'd'. However, there shall be no order as to costs.

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06-11-2020

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Svn

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Company Application No.218 of 2020 in CP No.375 of 2014

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M.SUNDAR, J.

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Svn

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Company Application No.218 of 2020
in CP No.375 of 2014

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06-11-2020

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http://www.judis.nic.in

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The Official Liquidator, as the Provisional Liquidator of M/s. Everonn Education Limited v. Nil

Case brief

What is this about?

What did the court decide?

The Official Liquidator, as the Provisional Liquidator of M/s. Everonn Education Limited v. Nil

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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