9911796707
TMI Blog2013 (1) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... for a period of 75 years commencing from July 24, 1991. The company defaulted in making payment of lease rent to the extent of Rs. 1,73,972.08 apart from electricity charges amounting to Rs. 62,855.63. The Corporation also assisted the company by supplying raw materials valued at Rs. 11,98,046.37 that also became outstanding. Since the company was not clearing their dues the Corporation filed a winding up petition. Another financial institution IDBI filed a recovery proceeding at Debt Recovery Tribunal. Ultimately, the Corporation terminated the lease by appropriate notice issued on January 19, 2000. The company was subsequently wound up and the Official Liquidator took steps for sale of the assets of the company-in-liquidation. The Officia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice of the appeal on the purchaser, such attempt failed as Mr. Mitra informed us, the unit was closed for a substantial period. We again asked to make further attempt when the Local Security Guards guarding the assets, received the notice as it appears from the affidavit of service. The Corporation also sent notice at the address given at the time of sale of the assets. The undelivered packet came with the remark, "No such company in this address, house not known". Hence, we took up the hearing in their absence. The learned counsel for the Official Liquidator was also absent. 4. Appearing for the appellant, Mr. Mitra contended lease did not provide for any liberty to create any sub-lease or power to assign the same. Hence, the Official Liq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to find out the status of the lessee as on the date of winding up of the company. As per the lease, lessee was supposed to pay and discharge all existing and future rates and taxes. They would have to discharge their obligation to pay all necessary charges including service charges required to be paid in maintaining the said demised plot. As per clause 2(j) they were not supposed to assign or transfer the leasehold interest absolutely, except to the Registered small scale unit and to any financial or Governmental institution for obtaining any financial assistance with prior permission of the Corporation. They were also not allowed in terms of other sub-clauses to hand over possession of the asset to anyone, even to enter into joint venture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, there was no rent in arrear as on the date of the winding up. Hence, there was no valid lease. 8. In our view, Corporation was entitled to repossess the land in question. The sale that was held by His Lordship was for the movable assets and the sheds and structures, if any, belonged to the company-in-liquidation. His Lordship's observation that the company was being sold as a going concern with an undertaking to engage all employees, would mean, the unit was to be run by the new purchaser along with the existing machinery and the workforce. Where it would be run, was the headache of the purchaser. The purchaser might approach the Corporation for a fresh lease. The order of His Lordship might help them to have a fruitful negotiation with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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