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2013 (5) TMI 710 - DELHI HIGH COURTWinding up petition - By Resolution dated 23rd May 1963 Lokmanya Cooperative Housing Society (‘LCHS’) which owned lands at Versova in Bombay decided to sell a parcel thereof to Mr. R.P. Anand looking after branch office at Mumbai of Anand Finance Private Limited (‘AFPL’) and 16 other joint purchasers - whether the land was purchased benami but who was the real owner of the property? - winding up petition as AFPL owes more than Rs. 1.70 crores to its creditors and was incapable of meeting its liabilities - Held that:- An analysis of the evidence renders the version of Mr. R.P. Anand that the Versova land was purchased by him in his own name by borrowing the funds in part from AFPL more probable. On the other hand, the OL has been unable to produce credible evidence in support of the plea that the Versova land had in fact been purchased by Mr. R.P. Anand as a benami for AFPL or that the Board of Directors of AFPL had resolved the land in Versova should be purchased by AFPL in the name of Mr. R.P. Anand. The declaration alleged to have been given by Mr. R.P. Anand was not produced and was unable to be proved. The minutes book produced before the Court showed that the crucial part of the minutes 30th April 1966 was admittedly written by Mr. R.L. Anand in his hand writing later on and not counter-signed by the Chairman of the meeting. Consequently, this Court rejects the case forthwith by the OL that the land at Versova actually belongs to AFPL. The Court rejects the plea forthwith by the OL that the land ad measuring 38681 sq. yards at Versova at Rs. 7.60 per sq. yd under a sale deed dated 17th September 1964 which has remained in possession of Mr. R.P. Anand in fact belongs to AFPL. What is the amount that should be directed to be paid by Mr. R.P. Anand to AFPL, treating the money advanced to him by AFPL as a loan that has remained unpaid till date? - Held that:- The factors that weigh with the Court are in the first place with the land not belonging to AFPL but to Mr. R.P. Anand, at the highest the sum advanced to him by AFPL for its purchase can be treated as an unpaid loan. There was no agreement at any point in time that he would pay AFPL compound interest of the sum. On the other hand as a result of pendency of the present petition for over 47 years, Mr. R.P. Anand has effectively been deprived of the right of dealing with the property. The extent available is about 7,000sq.yds and not 11,700 sq.yds as contended by the OL. At one stage of proceedings Mr. R.P. Anand himself offered to pay a sum of Rs. 50 lakhs and this fact was noticed in the order by the Court in its order dated 6th May 2002. However, even before the said offer could be acted upon, a higher offer was made. In light of the above factors the Court considers it appropriate to direct Mr. R.P. Anand to pay to the OL in the account of AFPL a sum of Rs. 65 lakhs by 15th July 2013 in full discharge of all of his liabilities towards AFPL and all interim orders operating against him as well as the property in question will stand vacated. Mr. R.P. Anand will be free to deal with his portion of the Versova property. With the payment of Rs. 65 lakhs by R.P. Anand, the final curtain would be drawn on this beleaguered litigation that has persisted for well over four decades. Upon such payment being made, nothing would remain to be examined as there are no claims to be settled, no assets to be realised and none of the contributories other than Mr. R.P. Anand surviving. Thus in exercise of its powers under Section 481 of the Act, the Court directs that upon payment of Rs. 65 lakhs by Mr. R.P. Anand, the OL will transfer a sum of Rs. 10 lakhs to the Common Pool Fund of the OL to defray the expenses incurred over the years in this matter by the OL and after settling any other statutory dues transfer the balance sum to the Reserve Bank of India within thirty days thereafter. With that event happening, AFPL will stand dissolved and its name will be struck off from the register of companies. Within thirty days of the transfer of the sum as directed to the RBI, the OL will file a certified copy of this order with the Registrar of Companies for compliance.
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