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2004 (1) TMI 377 - SUPREME COURTAppointment of receiver - Held that:- The order under appeal is modified. Though the order of the High Court appointing a receiver on the partnership business is maintained, the rest of the order is set aside and substituted as the business shall run as before under the actual management and control of Group "B" but as receivers. The Commissioner of Excise, Madhya Pradesh shall appoint an official who has been associated with the excise department of Madhya Pradesh, preferably a retired person, who shall act as an observer. All the sale proceeds shall be deposited day to day in a bank account to be opened in a nationalised bank in the name of the ‘Firm M/s. Ashok Traders. Any amounts to be withdrawn shall be only under the joint signatures of at least one members of Group "B" or "C" and the observer, for the purpose of making payments to the State Government, and on account of rent/licence fee of the shops, salary of the staff, transport charges and other necessary expenses required for running day to day business. Though the conduct of the business is being allowed to be continued by Group "B" but that is in their capacity of receivers as appointed by the Court. They must truly and strictly perform their duties as receivers. Any deviation would be viewed seriously.The members of Group "A" and/or their representative/s, authorized in writing, shall have a reasonable right to visit the shops during business hours and watch the activities going on but without interfering with the business activities run by the receivers. The observer shall be paid such monthly remuneration and reimbursed such expenses, as may be considered reasonable and appointed by the Commissioner of Excise subject to overall directions of the Trial Court. This arrangement shall continue till 31-3-2004 and also for such further period as may be necessary for winding up of the business as per terms of the license of the State Government (Excise Department). On finalization of the accounts duly audited by Chartered Accountants the net profit or loss, if any, shall be distributed in accordance with the award given by the arbitrator or decision by any competent forum.The receivers and observers shall be under the control of the trial Court.
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