TMI Blog2008 (9) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... , while O.J. Appeal No.137 of 2008 has been filed by the Official Liquidator. 2. The company (in liquidation) was ordered to be wound up on 11.10.1989 vide order made in Company Petition No.117 of 1989. It appears that prior thereto on 31st August, 1976 the land owner, namely, the Mills Company filed Form No.I under Section 6(1) of Urban Land (Ceiling and Regulation) Act, 1976 ( hereinafter referred to as 'ULC Act') in relation to the land bearing Survey No.39 and 41 of Dariyapur Kazipur, Ahmedabad. On 31st December, 1982, notice under Section 8(3) of ULC Act was issued to the erstwhile Company and was stated to have been received by the said Company. On 31st December, 1983, the erstwhile Company replied to the said notice inter alia stating that there was construction on the land in question and application made under Section 20 of the ULC Act to the State Government was pending. 3. Admittedly, pursuant to order of winding up, on 4.12.1989 the Official Liquidator took possession of the assets of the Company. Thereafter, on different dates notices under different provisions of the ULC Act are shown to have been issued and served according to the competent authority on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ahabad Bank Vs. Canara Bank and another reported in (2000) 4 SCC 406 for the purposes of determining the issue. The Company Court has also considered the object and purpose of the ULC Act. The effect of Section 42 of the ULC Act has been considered on the basis of the judgment of the Apex Court in the case of State of West Bengal and others Vs. Pranob Kumar Sur and others reported in (2003)9 SCC 490 to come to the conclusion that pendency of proceedings under the Companies Act shall not be a bar to affect the provisions of ULC Act. Lastly, the Company Court has considered the effect of Urban Land(Ceiling and Regulation ) Repeal Act, 1999. 7. Though the parties have addressed the Court at length on merits and demerits of the impugned order, it is not necessary to record and deal with the respective contentions raised on merits of the issue in light of the view that the Court is inclined to adopt. Furthermore, any expression of opinion, even, prima facie, might result in prejudice to one or the other party and hence the elaborate submissions made on behalf of the parties as to the true scope and purport of provisions of ULC Act, the powers of the competent authority, etc. are issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditor, it was submitted by learned advocate Mr.D.S.Vasavada and learned advocate Mr.R.M.Desai that provisions of Section 529A of the Act fasten a pari passu charge in relation to the charge of the secured creditor on the properties of the Company (in liquidation) and the object for which the said provision had been brought on statute book was required to be considered before any final decision could be recorded by the Company Court in favour of one or the other party. Therefore, there should be no order of limited or partial remand as prayed for by respondent-State Government. 11. The contention on behalf of the State Government that without framing issues, no order of remand should be made, cannot be countenanced. Similarly, any order of partial or limited remand would not only create multiplicity of proceedings by keeping the present appeal pending but may result in restricting the scope of powers available to the Company Court and also cause prejudice to one or the other party. Hence,even this contention does not merit acceptance. 12. On a plain reading of the provisions of Section 107 of C.P.C., it appears that the powers of the Appellate Court are co-terminus and co-e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced vide Companies (Amendment) Bill, 1985, the statement of object and reasons provided as under :- Another announcement made by the Finance Minister in his Budget speech relates to the decision of the Government to introduce necessary legislation so that legitimate dues of workers rank pari passu with secured creditors in the event of closure of the company and above even the dues to Government. The resources of the companies constitute a major segment of the material resources of the community and common good demands that the ownership and control of the resources of every company are so distributed that in the unfortunate even of its liquidation, workers, whose labour and effort constitute an invisible but easily perceivable part of the capital of the company are not deprived of their legitimate right to participate in the product of their labour and effort. It is accordingly proposed to amend Sections 529 and 530 of the Companies Act and also to incorporate a new Section in the Act, namely Section 529A vide clauses 4, 5 and 6 of the Bill). 16. In case of T.L.A. Vs. Official Liquidator reported in 2004(3) GLH 416, the Apex Court was called upon to decide the true scope ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
