JUDGMENT
Vijender Jain, C.J.
Company Application No. 2007:
1. For the reasons stated therein, the application, which is supported by the affidavit of Shri Ashok Pahwa, Deputy General Manager (Legal), Haryana Financial Corporation, is accepted and the delay of 136 days in the filing of the appeal is condoned.
Company Appeal No. 22 of 2007:
2. The appellant has filed this appeal impugning order dated 2.11.2006 passed by the learned Company Judge whereby the following directions were given while disposing of Company Application Nos. 453 and 960 of 2005 moved by the Official Liquidator under Rules 9, 308.and 309 of the Companies (Court) Rules, 1960:
i) The Central Government may sanction additional post (s) for the office of die Official Liquidator, keeping in view the nature and work with the office of Official Liquidator. However, till such time such additional posts are created and filled up, the Official Liquidator is permitted to transfer 10% of the interest income earned from each of the companies in liquidation to the fund called “Common Pool Fund” initially for a period of three years with effect from 1.4.2006. The said interest income shall be deposited in a separate account titled ” Common Pool Fund Account”.
ii) The Official Liquidator is permitted to approtion such interest income towards expenses of the fee of the Advocate, Chartered Accountants, Valuers etc. which is not otherwise reimbursable by the secured creditors or out of the sale proceeds of the assets of the Company in liquidation.
iii) the identifiable expenses incurred by the Official Liquidator in respect of each Company shall be recouped out of the sale proceeds of the assets of the Company in priority to the other debts of the Company.
iv) The Official Liquidator is permitted to engage additional staff, as may be necessary to enable him to effectively carry out the duties and responsibilities of the Official Liquidator. Such additional staff shall be called as Company paid staff to engaged on consolidated salary on contract for a fixed term. The expenses shall be payable out of the Common Pool Fund Account. The Official Liquidator shall seek permission of this Court prior to closing of every financial year to engage the additional staff, if any, and on such consolidated salary, keeping in view the nature of work of each post, qualification and experience of the candidate, so as to have uninterrupted working in the office of the Official Liquidator. However, such staff shall not be entitled to any other allowances, except specifically sanctioned by this Court.
v) The Official Liquidator shall appoint Company paid staff as and when any vacancy arises after advertisement in the newspaper by a Selection Committee consisting of Register General of this Court his nominee and die Official Liquidator, vi) The Official Liquidator shall file audited accounts within three months of close of each financial year with the status report in respect of each of the Company under liquidation containing details of sale of assets, disbursement of the sale proceeds and settlement of workmen’s dues etc. However, the status report in respect of the financial year ending 31st March, 2006 is permitted to be filed by 31st March, 2007. The Official Liquidator shall seek a panel of three reputed Chartered Accountants from the Institution of Chartered Accountants. A Chartered Accountant be appointed by the Official Liquidator with the prior permission of the Company Judge. Such Chartered Accountant shall audit the accounts of the Official Liquidator initially for a period of three years and subject to the order of die Company Judge.
vii) The Official Liquidator, henceforth shall take over the charge of the assets of the Company in winding up after communicating the same to the secured creditors within three months of the date of winding up and shall prepare an inventor. On preparing an inventory of the assets of the Company in liquidation in the presence of the representative (s) of the secured creditor(s), the Official Liquidator shall take steps for the valuation of the assets and thereafter sell the assets as expeditiously as possible, preferably within one year from the date of winding up. The Official Liquidator shall also take steps for the disposal of the claim (s) of the workmen and all the secured creditors, preferably within a period of one year of the sale of the assets of the Company in liquidation.
viii) The Official Liquidator shall be at liberty to deploy the security agency of their panel or direct any secured creditor to deploy its security agency under intimation to Official Liquidator. In case the secured creditors fail to provide security, the Official Liquidator shall provide the same.
3. The only grievance raised by the appellant before us is that the deduction of 10% of the interest income as incorporated in Clause (i) reproduced above cannot be attributed to the Common Pool Fund as it is the income of the Company in liquidation.
4. After hearing the learned Counsel for the appellant and perusing the record, we are of the opinion that there is no infirmity in the impugned order passed by the learned Company Judge as the Official Liquidator is under necessary compulsion to meet the expenses of the salary and allowances of the staff so requisitioned by the Company Court to carry out the process of liquidation of a Company. The expenses incurred on such staff and common establishment have necessarily to be apportioned between the Official Liquidator and the various companies under liquidation and the costs thereof have to be Apportioned proportionately.
In view of the fair directions given by the learned Single Judge as a Company Court, we do not find any merit in this appeal. The same is accordingly, dismissed.