IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.03.2011 CORAM: THE HONOURABLE MR.JUSTICE VINOD K.SHARMA C.A.Nos.1279 and 1280 of 2010 in C.A.No.316 of 2007 in C.P.No.13 of 2000 VINOD K.SHARMA, J.
This common order shall dispose of C.A.Nos.1279 and 1280 of 2010.
2. The applicant has moved these applications in C.A.No.1279 of 2010 with prayer to set aside the orders passed by this Court dated 31.01.2008 in C.A.No.316 of 2007 in C.P.No.13 of 2000 and to restore the sale deed dated 15.10.1998 registered as document No.4939 of 2008 with Sub-Registrar Office, Sriperumbudur. The applicant also prays for directing the Sub-registrar, Sriperumbudur to delete the entry dated 05.08.2008, cancelling the sale deed dated 15.10.1998.
3. The applicant invested with “M/s. Anubav Group of Companies” under various schemes, as detailed herein under:-
S.No.
Date
Name of the Investor
Name of the company
Amount in Rs.
1.
31.07.1996
R.Indira
Anubhav Group of Finance Companies
15,000
2.
31.07.1996
R.Srinivasan
Anubhav Group of Finance Companies
15,000
3.
08.11.1996
R.Indira
Anubhav Plantation Limited
10,000
4.
12.11.1996
R.Sundarrajan
Anubhav Group of Finance Companies
Total
55,000
(Rupees fifty five thousand only)
The above deposits were to carry interest @ 21% per annum. The date of maturity was 31.07.2001.
4. The applicant approached M/s.Anubav Group of Companies for premature refund of the amount, but their request was not accepted. Instead of refund of money, the company offered to sell to the applicant 4800 sq.ft of land in Anubav Greenrich Village, being green farm No.B-50 falling in S.Nos.186/2, 186/3 and 186/4 situated at Podavur Village, Sriperumbudur Taluk, Kancheepuram District.
5. The price of plot was fixed at Rs.1,01,636/-. The petitioner paid the price fixed after adjusting the deposit made. The sale deed was executed in favour of the applicant on 14.10.1998 vide Document No.4939 of 1996, Volume No. 2395 with Sub-Registrar, Sriperumbudur. The applicant therefore claims to be owner in possession of the aforesaid 4800 sq.ft of land.
6. M/s.Anubav Group of Company was ordered to be wound up by this court, and the Official Liquidator attached to this Court was appointed as the liquidator of the Company.
7. Mr.M.Ravindran, senior advocate was appointed as Administrator by this Court to take over the properties of M/s.Anubav Group of Companies and dispose of them. Administrator was also directed to administer the affairs of the company. Under the orders of this Court, the Administrator sold the property belonging to M/s.Anubav Group of Companies including that of the applicant.
8. The Company Petition for winding up of M/s.Anubav Group of Companies (Anubhav Green Farms and Resorts Private Limited) was filed on 06.01.2000.
9. Section 531 of the Companies Act reads as under:-
“Fraudulent preference
531. (1) Any transfer of property, movable or immovable, delivery of goods, payment, execution or other act relating to property made, taken or done by or against a company within six months before the commencement of its winding up which, had it been made, taken or done by or against an individual within three months before the presentation of an insolvency petition on which he is adjudged insolvent, would be deemed in his insolvency a fraudulent preference, shall in the event of the company being wound up, be deemed a fraudulent preference of its creditors and be invalid accordingly:
Provided that, in relation to things made, taken or done before the commencement of this Act, this sub-section shall have effect with the substitution, for the reference to six months, of a reference to three months.
(2) For the purposes of sub-section (1), the presentation of a petition for winding up in the case of a winding by [ the Tribunal ] and the passing of a resolution for winding up in the case of a voluntary winding up, shall be deemed to correspond to the act of insolvency in the case of an individual.”
10. The reading of Section 531 of the Companies Act, shows that the land under the ownership and possession of the applicant, could not be treated to be the property of the company in liquidation. The administrator therefore had no jurisdiction to sell the property belong to the applicant. The sale, therefore, is void and deserves to be set aside. The learned Administrator and the learned Deputy Official liquidator have pointed out that because of sale third party interests have been created, and that the applicant has filed belated application for setting aside of the sale. On asking of the Court, the learned Administrator has placed on record calculation memo, showing sale consideration for the property of the applicant to be Rs.4,08,000/- (Rupees four lakhs and eight thousand only), which is said to be available with the Official Liquidator.
11. Though under normal circumstances, this Court would have set aside the sale, and ordered delivery of possession to the applicant, the learned counsel appearing for the appellant, in view of third party interest stated that the applicant will be satisfied on receipt of sale consideration received by the administrator i.e., Rs.4,08,000/- (Rupees four lakhs and eight thousand only).
12. In view of the stand taken by the parties, both the applications are disposed of with a direction to the learned Official Liquidator to pay a sum of Rs.4,08,000/- (Rupees four lakhs and eight thousand only) to the applicant. On receipt of this amount, the claim of the applicant will stand settled, and the sale of property in favour of third party would be valid. The amount be paid within one week of the receipt of a certified copy of this order. This shall however be subject to the applicant, handing over the original sale deed, to the learned Official Liquidator for delivery to the purchaser. No costs.
15.03.2011
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Mra
VINOD K.SHARMA, J.
mra
C.A.Nos.1279 and 1280 of 2010
in
C.A.No.316 of 2007
in
C.P.No.13 of 2000
15.03.2011