Allowed

The Official Liquidator, as the liquidator of M/s.Erode Rana Textiles Processors Private Limited, v. M/s. International Asset Reconstruction Company Private Limited

Madras HC25 Sept 2020COMP.A/219/2020

Case brief

AI extract

What is this about?

In Comp.A.No.219 of 2020, the Company Court allowed the Official Liquidator to invite claims from creditors via newspaper advertisements and dispensing with individual notices under Rule 148(2) of the Companies (Court) Rules, 1959.

What did the court decide?

Permission to publish advertisement for claims in newspapers and to dispense with individual notices to creditors under Rule 148(2) of the Companies (Court) Rules, 1959.

The Official Liquidator, as the liquidator of… — Insolvency and Bankruptcy | Madras HC (2020)

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Comp.A.No.219 of 2020 in C.P.No.36 of 2006

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Comp.A.No.219 of 2020 in

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C.P.No.36 of 2006

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M.SUNDAR.J.,

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Captioned Company Application i.e., C.A.No.219 of 2020 has been

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taken out by 'Official Liquidator attached to this Court' ('OL' for the sake of brevity) with a multi-limbed prayer which, as culled out from the captioned application, reads as follows:

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'a) To take this report on record. b) To permit the Official Liquidator to call for claims from

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all the creditors of the company in liquidation by giving 30 days time from the date of publication of Notice in News papers to prove their debt/claim before the Official Liquidator.

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c) To permit the Official Liquidator to publish the advertisement for calling claims from the creditors of the company in liquidation in one issue of English Newspaper “ The New Indian Express” (in English) (Tamilnadu Edition) and in one issue of Tamil News Paper “Dina Mani” in (Tamilnadu Edition).

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d) To permit the Official Liquidator to dispense with the

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http://www.judis.nic.in

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Comp.A.No.219 of 2020 in C.P.No.36 of 2006

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requirement of Rule 148(2) of the Companies (Court) Rules, 1959,

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from the issue of individual notices to the creditors.

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e) To permit the Official to incur such expenditure as may

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be necessary such as printing and stationery charges, postages and advertisement charges etc., for the purpose of inviting claims from

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and out of the funds of the company in liquidation.

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f) To direct the secured creditor M/s.IARC, Chennai to deposit the 50% of sale proceeds of the immovable assets with the Official Liquidator to settle the claims of the creditors of the company in liquidation in terms of Law and

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g) to pass such order/s as this Hon' ble Court may deem fit

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and proper in the circumstances of the case.'

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Learned 'Deputy Official Liquidator' (hereinafter 'Deputy OL' for

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the sake of brevity), who is before this Company Court in this web-

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hearing on a video-conferencing platform, draws the attention of this Company Court to a 'report of the OL dated 13.08.2020' (hereinafter 'said

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report' for the sake of convenience and clarity) and submits that said

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report has been filed in support of captioned application.

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http://www.judis.nic.in

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Comp.A.No.219 of 2020 in C.P.No.36 of 2006

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Adverting to said report, learned Deputy OL submits that said

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company went into liquidation in and by an order dated 13.03.2007 vide

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which this Company Court appointed OL as Liquidator qua said
Company. It is submitted that thereafter the liquidation process unfurled
in accordance with law and that the same has been articulated in said
report.
4. What is of relevance is fund position of said Company, which is
articulated in Paragraph 8 of said report which reads as follows:
'8. That the funds position of the company as on 10.08.2020
Cash :- Nil
Bank :- Nil
Investment :- Rs.14,80,000/-'
5. The above has necessitated the filing of captioned application.

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As already mentioned supra, captioned application has been filed

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with a multi-limbed prayer, which has been extracted and reproduced

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elsewhere supra. With regard to Limb (d), at the hearing, learned Deputy

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http://www.judis.nic.in

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Comp.A.No.219 of 2020 in C.P.No.36 of 2006

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OL submits that it would be an expensive exercise to issue individual

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notices and it would be prudent to make this money available for disbursement among creditors. This submission is accepted considering

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the nature of the matter on hand as individual notices can turn out to be a

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penny wise pound foolish exercise.

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With regard to multi-limbed prayer, limb(f) can be considered only after the claims are considered and therefore, limb (f) of multilimbed prayer is not acceded to in this order, but rights of OL to seek appropriate relief at a future point of time is preserved. This Company Court, having perused said report, having heard learned Deputy OL, is convinced that that the multi-limbed prayer in captioned application is not

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only innocuous but imperative for furthering the liquidation process.

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Captioned application is ordered by acceding to prayer limbs (b) to (e).

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8.The publication shall be made and proof of publication shall be

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filed by OL within four weeks from the date of receipt of a copy of this

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http://www.judis.nic.in

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Comp.A.No.219 of 2020 in C.P.No.36 of 2006

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order.

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Captioned application ordered on above terms. There shall be no

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order as to costs.
25.09.2020
gpa

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http://www.judis.nic.in

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Comp.A.No.219 of 2020 in C.P.No.36 of 2006

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M.SUNDAR.J.,

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gpa

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Comp.A.No.217 of 2020 in
C.P.No.161 of 2015

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25.09.2020

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http://www.judis.nic.in

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The Official Liquidator, as the liquidator of M/s.Erode Rana Textiles Processors Private Limited, v. M/s. International Asset Reconstruction Company Private Limited

Case brief

What is this about?

What did the court decide?

The Official Liquidator, as the liquidator of M/s.Erode Rana Textiles Processors Private Limited, v. M/s. International Asset Reconstruction Company Private Limited

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

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