IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
COMPANY APPLICATION No 213 of 1996
in
COMPANY PETITIONNo 21 of 1984
AND
COMPANY APPLICATION NO. 85 OF 1997
IN
COMPANY PETITION NO. 21 OF 1984
For Approval and Signature:
Hon'ble MR.JUSTICE R.BALIA.
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1. Whether Reporters of Local Papers may be allowed
to see the judgements?
2. To be referred to the Reporter or not?
3. Whether Their Lordships wish to see the fair copy
of the judgement?
4. Whether this case involves a substantial question
of law as to the interpretation of the Constitution
of India, 1950 of any Order made thereunder?
5. Whether it is to be circulated to the Civil Judge?
————————————————————–
O.L. OF PRASAD MILLS CO.LTD.
Versus
STATE BANK OF INDIA
————————————————————–
Appearance:
OFFICIAL LIQUIDATOR for Petitioner for CA No.213/96
MR RM DESAI for Respondent No. 1
SERVED for Respondent No. 2, 3
————————————————————–
CORAM : MR.JUSTICE R.BALIA.
Date of decision: 24/06/97
ORAL COMMON JUDGEMENT
1.The learned Official Liquidator has moved Company
Application No.213/96 that he may be permitted to dispose
of the assets of the Company in liquidation i.e. Prasad
Mills Company Ltd. The Company Application No.85/1997
has been moved by the State Bank of India, Ahmedabad, who
is one of the secured creditors of the company in
liquidation i.e. Prasad Mills Company Ltd for realising
their securities.
2.As per the the say of the applicants, since there
is no possibility of restarting the Mills, so on
realisation of the assets, the creditors and workers may
be paid their dues in accordance with the priority and
for that purpose, a sales committee may be constituted.
They have also requested that the inventory of the assets
may be prepared and be got valued through Government
Approved Valuer to be appointed from the penal maintained
in the office of Official Liquidator for the purpose of
effecting the sale and for that purpose, he may be
permitted to incur necessary expenses out of the funds of
the company lying with the Official Liquidator.
3.Mr.R.M.Desai, learned counsel appearing for the
secured creditors State Bank of India and I.D.B.I. and
Mr. Vasavada, learned counsel appearing for the Textile
Labour Association have no objection if such permission
is given to the learned Official Liquidator and the sales
committee be constituted with the representatives of the
secured creditors, textile labour association and the
official liquidator.
4.Since after making of the order of winding up, no
proposal has come up for restarting the company in
liquidation. The submissions of the learned official
liquidator appear to be justified, for possibility of
restarting of the company is not there and the only way
out is to complete the winding up proceedings and realise
the assets of the company and disburse the same to them
in accordance with their priorities.
5.In these circumstances, it is directed that the
Official Liquidator is permitted to sale the assets of
the company and for that purpose, sales committee be
constituted consisting of the representatives of
Industrial Development Bank of India, State Bank of India
and Textile Labour Association with the official
liquidator to be the convenor of the said committee.
6.This committee shall do the needful for selling
the assets of the company including the assets over which
the abovenamed Institutions viz. I.D.B.I. and S.B.I.
have charge. No member of the committee shall be
entitled to any remmuneration for attending the committee
meetings or discharging the function as the member of the
sales committee. The committee shall take appropriate
decision with regard to the mode and the manner in which
the assets are to be sold so as to secure the best price
of the assets. It would be open for the committee to
have resort to Expert’s advice in the field of textile
industry. The sale shall be subject to the confirmation
by this Court. The sale proceeds shall be deposited with
the learned Official Liquidator which shall be kept in
separate account. The Official Liquidator is permitted
to incur such expenses as are necessary to enable the
committee for carrying out the sale of the assets of
company. This shall include obtaining report about
valuation of various assets of the company from the
approved valuer on the panel of Official Liquidator for
the purpose of determining upset price in endeavour to
secure best prices.
7.In view of the aforesaid, Company Application
No.213/96 and Company Application No.85/1997 stand
disposed of.
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