Allowed

M/s.Rice Oil and Foods Ltd, (In Liqn.) v. -

Telangana HC2 Mar 2016COMPA/230/2016

Case brief

AI extract

What is this about?

This is an application under Section 481 of the Companies Act to dissolve a company in liquidation where no assets were realized. The court, being satisfied that winding up need not continue due to minimal balance, dissolved the company, authorized transfer of funds, and permitted record disposal.

What did the court decide?

Company dissolved; R.C.C. No. 13 of 1994 closed; balance transferred to Estate and Establishment Fund Account; permission to destroy records after 5 years.

M/s.Rice Oil and Foods Ltd, (In Liqn.) Vs - — Insolvency and Bankruptcy | Telangana HC (2016)

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HONOURABLE SRI JUSTICE S.V. BHATT

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COMPANY APPLICATION No. 230 of 2016 In/And R.C.C. No. 13 of 1994

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O R D E R :

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This application is filed under Section 481 of the Companies Act, 1956 (for short ‘the Act’) read with Rules 9, 281 and 282 of the Companies (Court) Rules, 1959 (for short ‘the Rules’).

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The Official Liquidator prays for the following relief:

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“(i) form an opinion that the liquidator cannot proceed with the winding up and that it is just and reasonable in the circumstances of the case to order for the dissolution of the company.

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(ii) dispense with the filing of the Half Yearly Accounts for the period from 01.10.2015 till date.

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(iii) dispense with the filing of the Final accounts of the company since no realization have been made in the company in liquidation.

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(iv) grant permission to deposit the unspent money available in the credit of the company’s account after meeting all incidental expenses of the winding up process, into the Companies Liquidation Account.

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(v) order that M/s. Rice Oil & Foods Ltd., be dissolved with effect from the date of the order.

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(vi) permit the Official Liquidator to dispose of / destroy the books of accounts and records of the company any day after expiry of 5(five) years from the date of order of the dissolution of the company.

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(vii) permit the Official Liquidator to incur the cost of this application be met from the funds of the company in liquidation and pass such order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case and thus render justice.”

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The circumstances relevant for disposal of this application are

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as follows:

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This Court, by order dated 28.01.1997 in R.C.C.No. 13 of 1994,

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ordered winding up of M/s. Rice Oil & Foods Ltd., (company in liquidation).

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The Official Liquidator has filed Annexures A to C along with this application.

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Heard Sri M.Anil Kumar, learned counsel for the Official Liquidator and perused the statement of affairs of the company in liquidation and other material as evidenced by Annexures A to C and also the affidavit of the Official Liquidator dated 21.12.2015.

¶19

The Official Liquidator in the winding up process could not and did not get into administration of asset or cash of company in liquidation. As on date, the balance available to the credit of the company in liquidation is Rs.2,581.90 paise. I am satisfied that the winding up process need not be continued and orders for dissolution of M/s. Rice Oil & Foods Ltd., are passed. The company in liquidation is dissolved.

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The Company Application is accordingly allowed. The Official Liquidator is authorized to transfer the balance to Estate and Establishment Fund Account. Consequently, R.C.C.No.13 of 1994 is closed.

¶21

______________ S.V. BHATT, J

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Date: 02.03.2016 va

M/s.Rice Oil and Foods Ltd, (In Liqn.) v. -

Case brief

What is this about?

What did the court decide?

M/s.Rice Oil and Foods Ltd, (In Liqn.) v. -

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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