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2018 (4) TMI 1868 - HC - Companies LawWinding up of company - appointment of Official Liquidator - appointment is rejected on the ground that the petition for appointment of Provisional Liquidator can be entertained and an order thereon can be passed only after the admission of the Company Petition, but not along with the admission - rejection also on the ground that neither any notice was issued nor any reasons, for dispensing with such notice or for appointing the Provisional Liquidator, have been assigned - HELD THAT:- Sub-section (2) of Section 450 of the Act ordains that the Court shall not only give the Company a notice but also a reasonable opportunity to it to make its representations against the appointment of the Provisional Liquidator before such appointment is made. In our opinion, sub-section (2) of Section 450 of the Act is incorporated with the avowed object of allowing the Company to make, its representations before appointing a provisional liquidator, for, appointment of the Provisional Liquidator is drastic in nature like appointment of a receiver in respect of the property in a civil dispute. As rightly argued by the learned Senior Counsel, only for special reasons to be recorded in writing, issue of such notice can be dispensed with. Admittedly, no such reasons have been assigned for dispensing with such notice to the appellant. The order of the learned Company Judge to the extent of appointing the Provisional Liquidator cannot be sustained and the same is, accordingly, set aside while confirming the order under Appeal to the extent of admission of the Company Petition - Appeal allowed in part.
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