Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2013 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 913 - HC - Companies LawWinding up - Power to stay winding up - Stay on Winding up Petition – Held that:- it was apparent that the applicants do not desire to revive the business of the company in liquidation by developing part of its properties or portions of its lands, but desire to take over the said lands for exploitation in the real estate market - It was clearly their motive that these lands should be taken over without offering the market price, but via this application so that once the permanent stay of winding up was obtained or granted, that would mean that the company’s prime assets and properties can no longer be controlled by the court - They would develop these lands by constructing buildings and sell off the units therein and earn profits. The desire to cash on the lands with a view to fully exploit their potential was not matched with the same approach as far as the creditors of the company are concerned - By not reviving the company after taking it out of winding up shows that the applicants were primarily concerned with the benefits attached to these lands. Thus, to avoid participation at a public auction and at a sale which will be conducted in a transparent and fair manner, that the application had been filed - If ultimately it was impossible to revive the company, then, it was better that the liquidator carries on its affairs till the dissolution of the company - It was only through the mechanism and participation of the liquidator, that the court can ensure settlement of claims of the secured and unsecured creditors in accordance with law - when claims of certain workmen have been given a preference over others or non-consenting employees, then, all the more it would not be in public interest and commercial morality to grant any reliefs - Relying upon Shaan Zaveri v. Gautam Sarabhai (P.) Ltd. [2009 (5) TMI 543 - HIGH COURT OF GUJARAT] - The scheme was found to be not contravening any of the provisions of law that the discretion was exercised on the sound judicial principles - That must be seen in the facts of that case and that this judgment does not lay down any general rule - None of the grounds enabling exercise of discretion under section 466 have been made out, this company application was dismissed but without any order as to costs - The official liquidator should now proceed expeditiously and adjudicate the claims received and take all such steps as were necessary and permissible in law for winding up the company in liquidation.
|