{"id":112500,"date":"2011-04-25T00:00:00","date_gmt":"2011-04-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/company-application-no-375-of-2-vs-unknown-on-25-april-2011"},"modified":"2018-06-25T21:52:23","modified_gmt":"2018-06-25T16:22:23","slug":"company-application-no-375-of-2-vs-unknown-on-25-april-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/company-application-no-375-of-2-vs-unknown-on-25-april-2011","title":{"rendered":"Company Application No. 375 Of 2 vs Unknown on 25 April, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Company Application No. 375 Of 2 vs Unknown on 25 April, 2011<\/div>\n<div class=\"doc_author\">Author: Ravi R.Tripathi,&amp;Nbsp;<\/div>\n<pre>     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD\n\n\n\n     COMPANY APPLICATION No.375 of 2001\n\n\n      In\n\n\n      COMPANY PETITION No.126 of 1990\n\n\n     --------------------------------------------------------------\n     PARVATIBEN NARANBHAI TANDEL\nVersus\n     O.L. OF VITTA MAZDA LTD.(In Liquidation)\n     --------------------------------------------------------------\n     Appearance:\n     1. COMPANY APPLICATION No. 375 of 2001\n          MR PK JANI for Applicant\n          MR RM DESAI for Opponent\n     --------------------------------------------------------------\n\n\n               CORAM : MR.JUSTICE RAVI R.TRIPATHI\n\n\n               Date of Order: 02\/05\/2003\n\n\nORAL ORDER<\/pre>\n<p>     1.The   present   application    is     filed by one<br \/>\n     Parvatiben   Naranbhai   Tandel     for     directing  the<br \/>\n     opponent-Official Liquidator of M\/s.Vitta Mazda Limited<br \/>\n     to rectify the mistake in the notice dated 28th November,<br \/>\n     1998 issued by him pursuant to the order passed by this<br \/>\n     Court in Company Petition No.126 of 1990 on 27th August,<br \/>\n     1990 and allow her to deal with Plot No.1 Sector No.2,<br \/>\n     admeasuring 5037.67 sq.ft.      (468 sq.mtrs.) of the N.A.<br \/>\n     land bearing Survey No.78\/57 situate within the limits of<br \/>\n     Kathiria, Nani Daman in any manner she likes.\n<\/p>\n<p>     2.The facts of the case are that the applicant, who<br \/>\n     is a resident of Parkota Sheri, Nani Daman, Daman (U.T.),<br \/>\n     by a sale deed dated 7th February, 1994, which was<br \/>\n     registered on 8th February, 1994 at the Sub Registrar&#8217;s<br \/>\n     Office   of Daman, a copy of which is produced at<br \/>\n     Annexure-A to the application, purchased the aforesaid<br \/>\n     property, that is, Plot No.1 in Sector no.2, admeasuring<br \/>\n     5037.67 sq.ft. (468 sq.mtrs.) from the land bearing<br \/>\n     Survey No.78\/57 known as &#8220;Narayan Park&#8221;, along with the<br \/>\n     rights of way, trees, easements and appurtenances to the<br \/>\n     said plot.\n<\/p>\n<p>     3.The   case of the applicant is that she was put in<br \/>\n possession of the land in question and she also made an<br \/>\napplication to the Mamlatdar on 11th April, 1994 for<br \/>\nmaking necessary mutation entry in the revenue records, a<br \/>\ncopy whereof is at Annexure-B to the application. It is<br \/>\nalso the case of the applicant that she was enjoying<br \/>\npeaceful possession of the property since 1994 untill the<br \/>\nsame came to be disturbed by notice dated 28th November,<br \/>\n1998. The possession of the properties and belongings of<br \/>\nthe company was taken over by the Official Liquidator<br \/>\nafter the said notice. The applicant, therefore, made a<br \/>\nrepresentation to the Official Liquidator on 20th May,<br \/>\n2001 stating that she had purchased the said property<br \/>\nfree from all encumbrances from M\/s.Vitta Mazda Limited<br \/>\nby a registered sale deed and that she is in possession<br \/>\nthereof since then. The applicant made a request that as<br \/>\nshe wants to sell the property for which she has an<br \/>\nintending purchaser who has promised to purchase at the<br \/>\npresent market value which is Rs.2 lacs, the mistake may<br \/>\nkindly be rectified.\n<\/p>\n<p>4.The Official    Liquidator   replied   the   said<br \/>\nrepresentation by a communication dated 16th July, 2001<br \/>\nwherein it was stated that by an order dated 27th August,<br \/>\n1998 passed by this Court in Company Petition No.126 of<br \/>\n1990, the Official Liquidator attached to this Court is<br \/>\nappointed as the Liquidator of M\/s.Vitta Mazda Limited,<br \/>\nwhich has gone into liquidation, and accordingly, as per<br \/>\nthe directions of this Court, he has taken possession of<br \/>\nthe available assets and properties of the company. It<br \/>\nwas stated that as the Ex-Directors of the company have<br \/>\nnot furnished any details of the assets and properties of<br \/>\nthe company, the applicant may approach this Court to<br \/>\nobtain necessary orders. It is in this background that<br \/>\nthe present application is filed.\n<\/p>\n<p>5.Mr.P.K.Jani, learned Advocate appearing for the<br \/>\napplicant, strenuously contended that the applicant is a<br \/>\nbona fide purchaser and that she had purchased the<br \/>\nproperty for the consideration mentioned in the sale deed<br \/>\nand that she was in possession of the property since<br \/>\n1994, when the sale deed was executed.\n<\/p>\n<p>6.On the other side, Mr.R.M.Desai, learned Advocate<br \/>\nappearing for the Official Liquidator, submitted that the<br \/>\npresent application deserves to be rejected as the `sale&#8217;<br \/>\nof the property in question is not required to be<br \/>\nvalidated by this Court.      He   submitted   that   the<br \/>\ntransaction is hit by the provisions of the Indian<br \/>\nCompanies Act, 1956. Mr.Desai relied upon a judgement of<br \/>\nMadras High Court in the matter between The Andhra Bank<br \/>\nLimited vs.   Provisional Liquidator, The Godavari Sugars<br \/>\n &amp; Refineries Limited, reported in Comp.Cases Vol.XXIV<br \/>\npg.149, wherein it is held that while making an order<br \/>\nunder Section 227(2) of the Indian Companies Act [now<br \/>\nSection 536(2)] validating the disposition of property of<br \/>\na company after it is ordered to be wound up, the Court<br \/>\nshould bear in mind the fundamental principle that the<br \/>\nassets of the company should be made available for the<br \/>\ndistribution pari passu amongst the creditors of the<br \/>\ncompany and that no creditor should obtain an advantage<br \/>\nover his fellow creditor. Mr.Desai submitted that the<br \/>\nCourt was pleased to hold that it is for the applicant<br \/>\ncreditor to establish as to why he should be preferred to<br \/>\nthe general body of creditors and why the discretion of<br \/>\nthe Court be exercised in his favour under Section 227(2)<br \/>\n(old). Mr.Desai submitted that what is most important is<br \/>\nthat the Court was pleased to hold that whether or not<br \/>\nthe creditor had knowledge of the presentation of the<br \/>\npetition for winding up is immaterial and that the<br \/>\ncreditor was bona fide in having advanced sums of money<br \/>\nto the company is not sufficient.&#8221;\n<\/p>\n<p>(emphasis supplied)<\/p>\n<p>7.Mr.Desai, learned Advocate, also relied upon a<br \/>\njudgement of this Court in the matter of <a href=\"\/doc\/1602161\/\">Rushvi Estate<br \/>\nAnd Investments Pvt.   Ltd.    vs. Official Liquidator of<br \/>\nShri Ambika Mills Limited,<\/a> reported in 2001 Comp.Cases<br \/>\n(Vol.105) pg.828, in support of his contention that if an<br \/>\nimmoveable property of the company is sold without there<br \/>\nbeing any resolution authorising `sale agreement&#8217;, such<br \/>\nan agreement will amount to fraud.        This Court was<br \/>\npleased to hold that in case of purchase of property from<br \/>\na public limited company, the first thing that          a<br \/>\npurchaser is expected to look into is the audited reports<br \/>\nand have an inspection of the files of the company with<br \/>\nthe Registrar of Companies, and ask for the statement of<br \/>\naccounts of such a company. If this is not done by any<br \/>\nof   the   purchasers,   then,    his  pleas   cannot be<br \/>\nentertained.\n<\/p>\n<p>8.From the record of the case, it transpires that<br \/>\nthe applicant has not produced a copy of the sale deed<br \/>\nand has only produced a copy of Form-`T&#8217; bearing Serial<br \/>\nNo.163\/1994 dated 8th February, 1994 wherein the nature<br \/>\nof of document is described       as   &#8220;Sale   Deed   for<br \/>\nRs.75,000=00&#8221;.    Mr.Jani,   learned   Advocate for the<br \/>\napplicant, at this juncture, made available a copy of the<br \/>\nregistered sale deed for perusal of the Court.         On<br \/>\nperusal of the said sale deed, it is clear that it does<br \/>\nnot have any reference of the mode of payment of the sale<br \/>\nconsideration. Paragraph-1 of the document is relevant,<br \/>\nwhich reads as under :\n<\/p>\n<blockquote><p>       &#8220;1.NOW    THIS INDENTURE WITNESSETH THAT in<br \/>\n               pursuance of    the   said   agreement   and  in<br \/>\n               consideration     of    the    total    sum   of<br \/>\n               Rs.75,000\/(Rupees Seventy Five Thousand Only)<br \/>\n               which is its fair Market Value paid by the said<br \/>\n               PURCHASER to the said VENDORS, the VENDORS do<br \/>\n               hereby admit and acknowledge the receipt thereof<br \/>\n               and forever do acquit, release and discharge the<br \/>\n               said PURCHASER forever and the said VENDORS do<br \/>\n               hereby grant, sell, assign, release, convey and<br \/>\n               assure unto the said PURCHASER free from all<br \/>\n               encumbrances, forever the said land,&#8230;&#8230;&#8221;\n<\/p><\/blockquote>\n<blockquote><p>     Mr.Jani could not render any explanation as to<br \/>\n     why the sale deed does not contain the details of the<br \/>\n     mode of payment of the consideration. Mr.Jani could not<br \/>\n     gather any details of payment from his client also. The<br \/>\n     Court had earlier granted time on 6th February, 2003.\n<\/p><\/blockquote>\n<blockquote><p>     9.From the aforesaid discussion, it is clear that<br \/>\n     the Company Petition was filed in the year 1990 and the<br \/>\n     order of winding up was passed on 27th June, 1998 while<br \/>\n     the transaction is that of the year-1994 and though the<br \/>\n     sale deed is registered one, it does not mention about<br \/>\n     the mode of payment. This aspect goes to the root of the<br \/>\n     matter.   The applicant has not produced any material on<br \/>\n     record which will help the Court to come to          the<br \/>\n     conclusion that the applicant is a bona fide purchaser.<br \/>\n     In light of the two decisions cited by Mr.Desai, the<br \/>\n     Court is of the opinion that the transaction in question<br \/>\n     is not required to be validated, more so, when it does<br \/>\n     not inspire confidence to grant the prayers of this<br \/>\n     application. In the result, this application fails and<br \/>\n     the same is dismissed.    Notice is discharged. No order<br \/>\n     as to costs.\n<\/p><\/blockquote>\n<p>(Ravi R. Tripathi, J.)<br \/>\n      kamlesh*\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Company Application No. 375 Of 2 vs Unknown on 25 April, 2011 Author: Ravi R.Tripathi,&amp;Nbsp; IN THE HIGH COURT OF GUJARAT AT AHMEDABAD COMPANY APPLICATION No.375 of 2001 In COMPANY PETITION No.126 of 1990 &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211; PARVATIBEN NARANBHAI TANDEL Versus O.L. OF VITTA MAZDA LTD.(In Liquidation) &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211; Appearance: 1. COMPANY APPLICATION No. 375 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-112500","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Company Application No. 375 Of 2 vs Unknown on 25 April, 2011 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/company-application-no-375-of-2-vs-unknown-on-25-april-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Company Application No. 375 Of 2 vs Unknown on 25 April, 2011 - Free Judgements of Supreme Court &amp; 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