Dismissed

Punjab State Industrial Dev. Corpn. Ltd. v. M/S Punjab National Fertilizer and Chemicals Ltd.

Punjab & Haryana HC10 Apr 2013CAPP/11/2013

Case brief

AI extract

What is this about?

The Punjab High Court dismissed the appeal filed by the appellant against an order directing it to pay advertisement expenses for the sale of a company's assets. The court held that the duty to recover excess charges lies with the Official Liquidator but does not absolve the secured creditor of paying the authorized expenses.

What did the court decide?

Demand for payment of Rs. 15,01,661/- towards advertisement expenses to be allowed. Appellant to deposit amount within four weeks.

Punjab State Industrial Dev. Corpn. Ltd. Vs… — Company and Corporate | Punjab & Haryana HC (2013)

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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Date of decision: 10.04.2013 CAPP No. 11 of 2013 (O&M)

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Punjab State Industrial Development Corporation Ltd.

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......Appellant.

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vs.

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M/s Punjab National Fertilizer & Chemicals Ltd., (in Liq) & ors

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.....Respondents.

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CORAM: - HON’BLE MR. JUSTICE HEMANT GUPTA HON'BLE MS. JUSTICE RITU BAHRI

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Present: - Mr. B.S. Walia, Advocate for the appellant.

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Hemant Gupta, J

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Present appeal is directed against an order passed by the Company Court on 31.1.2013 whereby the appellant has been directed to pay a sum of Rs. 15,01,661/- towards the expenses of advertisement published for the sale of assets of the Company-inLiquidation.

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The advertisements were got published by the Official Liquidator through the advertising agency i.e. M/s Nikita Media Services who has raised a bill of Rs. 49,57,655/-. In CP No. 19 of 2009, Punjab State Industrial Development Corporation Limited vs. Punjab National Fertilizer and Chemicals Limited and ors, the said expenses were ordered to be paid by the Official Liquidator but the Official Liquidator was also directed to take action against such persons who are found responsible for the publication of advertisement at a market rate than at the rates prescribed for Directorate of Audio Video Publicity (DAVP).

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-2-

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The grievance of the appellant is that it is the Official Liquidator who has to realize the excess amount from the persons who are responsible for the publication of the advertisement rather than the appellant who is the secured creditor.

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We do not find any merit in the said argument raised by the learned counsel for the appellant. The Official Liquidator has been directed to take action against such persons who are found liable for publication of the advertisement which may include the recovery of the excess amount but it does not absolve the appellant as a secured creditor to defray the publication expenses to the Official Liquidator.

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In view of the said fact, we do not find any merit in the present appeal.

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Dismissed. However, it shall be open to the appellant to claim publication charges as sale expenses from the assets of the Company. The appellant may deposit the amount within a period of four weeks from today.

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(HEMANT GUPTA) JUDGE

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10.04.2013 preeti

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(RITU BAHRI) JUDGE

Punjab State Industrial Dev. Corpn. Ltd. v. M/S Punjab National Fertilizer and Chemicals Ltd.

Case brief

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What did the court decide?

Punjab State Industrial Dev. Corpn. Ltd. v. M/S Punjab National Fertilizer and Chemicals Ltd.

Case brief

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What did the court decide?

What the court decided

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