{"id":11368,"date":"2011-11-08T00:00:00","date_gmt":"2011-11-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/rajesh-vs-the-on-8-november-2011"},"modified":"2019-01-23T06:46:27","modified_gmt":"2019-01-23T01:16:27","slug":"rajesh-vs-the-on-8-november-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/rajesh-vs-the-on-8-november-2011","title":{"rendered":"Rajesh vs The on 8 November, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Rajesh vs The on 8 November, 2011<\/div>\n<div class=\"doc_author\">Author: Mohit S. K.A.Puj,<\/div>\n<pre>  \n Gujarat High Court Case Information System \n    \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nOJA\/62\/2007\t 7\/ 7\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nO.J.APPEAL\nNo. 62 of 2007\n \n\nIn\n\n\n \n\nOFFICIAL\nLIQUDATOR REPORT No. 81 of 2002\n \n\nIn\n\n\n \n\nCOMPANY\nPETITION No. 160 of\n2000 \n \n=================================================\n \n\nRAJESH\nDAHYABHAI CHAVDA - Appellant(s)\n \n\nVersus\n \n\nO.L.\nOF HEXONE PHARMACEUTICALSLIMITED &amp; 5 - Opponent(s)\n \n\n================================================= \nAppearance\n: \nMR AB MUNSHI for Appellant(s) :\n1, \nOFFICIAL LIQUIDATOR for Opponent(s) : 1, \nMR MRUGESH JANI for\nOpponent(s) : 1, \nMR HS MUNSHAW for Opponent(s) : 2, \nNOTICE\nSERVED BY DS for Opponent(s) : 3, \nSERVED BY RPAD - (N) for\nOpponent(s) : 4, 6, \nDELETED for Opponent(s) :\n5, \n=================================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE M.S.SHAH\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE K.A.PUJ\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 13\/09\/2007 \n\n \n\n \n \nORAL\nORDER<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MR.JUSTICE K.A.PUJ)<\/p>\n<p>\tThe<br \/>\nappellant ?  original respondent No.6 has filed this Appeal against<br \/>\nthe order passed by the learned Company Judge on 9.4.2007 in OLR<br \/>\nNo.81 of 2002, wherein the learned Company Judge has directed the<br \/>\npresent appellant to hand over the possession of the property in<br \/>\nquestion to the Official Liquidator within a period of two weeks from<br \/>\nthe date of the said order.\n<\/p>\n<p>2.\tIt<br \/>\nis the case of the appellant that the Company, namely, M\/s.Hexone<br \/>\nPharmaceuticals Ltd., was ordered to be wound up by an order dated<br \/>\n14.7.2005 in Company Petition No.160 of 2000.  Prior to the winding<br \/>\nup order the Official Liquidator was appointed as the Provisional<br \/>\nLiquidator of the Company by an order dated 21.12.2001 and the<br \/>\nProvisional Liquidator was directed to take possession of the<br \/>\nproperties of the Company.  The Company had  its Registered Office at<br \/>\n26 Shroff Building, 1st Floor, Valsad ?  396 001.  The<br \/>\nsaid property was given on rent to one M\/s. Bijoy Medical Agency, a<br \/>\nsole proprietorship concern of one Mr. Dilip Kumar Ray.  The said<br \/>\nDilip Kumar Ray was also a Director of the Company in liquidation.<br \/>\nHe had, therefore,  given the said address as the  Registered Office<br \/>\nof the Company.  As a matter of fact the Company was never a tenant<br \/>\nnor an owner of the said property and had no right, title or interest<br \/>\nin the said property.\n<\/p>\n<p>3.\tIt<br \/>\nis also the case of the appellant that the Company shifted the<br \/>\naddress of its Registered Office from the said property to Kharvel,<br \/>\nTaluka ?  Dharampur, Dist. Valsad with effect from 20.11.2001 and<br \/>\nfiled Form No.18 with the office of the  Registrar of Companies,<br \/>\nintimating the change in the address of its Registered Office.  The<br \/>\nappellant purchased the said property from its owner by registered<br \/>\nsale deed dated 24.1.2002.  Since the Official Liquidator was<br \/>\nappointed as Provisional Liquidator of the Company on 21.12.2001 and<br \/>\nsince the said property was the Registered Office of the Company, the<br \/>\nOfficial Liquidator had asked the appellant to hand over the said<br \/>\nproperty to him.  The appellant raised objection against the said<br \/>\ndemand and pointed out that he had purchased the said property and<br \/>\nthe property was neither given on rent to Company nor the company was<br \/>\nowner of the said property.  The Official Liquidator therefore filed<br \/>\nOLR No.81 of 2002 before the learned Company Judge seeking inter<br \/>\nalia, direction to take possession of the said property.  The present<br \/>\nappellant has filed an affidavit-in-reply and pointed out the correct<br \/>\nfacts.  The appellant has raised a specific plea before the learned<br \/>\nCompany Judge that the Company had no right, title or interest either<br \/>\nas a tenant or as the owner in the said property.  The appellant has<br \/>\nalso pointed out that the Company had already shifted its Registered<br \/>\nOffice from the said property to another place.  The Company had not<br \/>\ntransferred this property since the Company had no right, title and<br \/>\ninterest in the said property, and hence provisions of Section 531 of<br \/>\nthe Act which relate to the  fraudulent transfer were not attracted<br \/>\nat all.  Despite this fact, the  learned Company Judge has passed an<br \/>\norder and held as under :-\n<\/p>\n<p>?SOn going through<br \/>\nrelevant records, it cannot be disputed that the Registered Office of<br \/>\nthe Company in liquidation was situated at 26, Shroff Building, 1st<br \/>\nFloor, Valsad. It is also not in dispute that petition for winding up<br \/>\nwas filed on 26.01.2000. After the presentation of the winding up<br \/>\npetition, it appears that Registered Office of the Company was<br \/>\nshifted and even surrender of the possession by Bijoy Medical Agency<br \/>\nand purchase of the property in question by respondent No.6 was after<br \/>\nwinding up petition. Thus prima<br \/>\nfacie it seems that all the transactions and transfers are hit<br \/>\nby Section 531 of the Companies Act.  Under the circumstances,<br \/>\nrespondent No.6 is required to hand over the possession of the<br \/>\naforesaid property to the Official Liquidator within a period of 2<br \/>\n(two) weeks from today. However, it will be open for respondent No.6<br \/>\nto submit an appropriate application for validating the transaction<br \/>\nin his favour and the same can be dealt with in accordance with law<br \/>\nand on merits. Prayer in terms of paragraph No. 15(b) is granted.??\n<\/p>\n<p>4.\tIt is this order of<br \/>\nthe learned Company Judge, which is under challenge in the present<br \/>\nAppeal.  This Court has passed a detailed order on 25.4.2007, whereby<br \/>\nthe Appeal was admitted and in OJ Civil Application the Court has<br \/>\ndirected the appellant to deposit an amount of Rs.50,000\/- with the<br \/>\nOfficial Liquidator and on depositing the said amount the Official<br \/>\nLiquidator was directed to remove the seal and hand over the property<br \/>\nin question to the appellant and the appellant was permitted to make<br \/>\nuse of the said property.  Pursuant to the said order the amount have<br \/>\nalso been deposited by the present appellant and the Court has passed<br \/>\nfurther order on 21.6.2007.  The Court has observed that the amount<br \/>\nof Rs.50,000\/- deposited by the appellant shall be invested in a<br \/>\nfixed deposit with a nationalized bank for a period of six months and<br \/>\ninterest accruing thereon shall be accumulated.\n<\/p>\n<p>5.\tLearned Counsel Mr.<br \/>\nAshok L. Shah with Mr. A.B.Munshi for the appellant submitted that<br \/>\nthe Company in liquidation has nothing to do with the property in<br \/>\nquestion and the appellant has not purchased the said property from<br \/>\nthe Company.  There is no question of invoking the provisions of<br \/>\nSection 531 of the Companies Act, 1956, as there was no fraudulent<br \/>\ntransfer.   The property in question does not belong to the Company.<br \/>\nWhen the Company is neither tenant nor the owner of the said property<br \/>\nand merely the Director has given address of this property as the<br \/>\nRegistered Office of the Company it cannot be said that the said<br \/>\nproperty belongs to the Company and the Company is  either tenant or<br \/>\nowner of the said property.  He has, therefore, submitted that the<br \/>\ninterim order passed by the Court, whereby the present appellant was<br \/>\nallowed to have possession  of the said property should be made final<br \/>\nand the amount of Rs.50,000\/-, which was deposited pursuant to the<br \/>\ninterim order should be refunded to the appellant alongwith the<br \/>\ninterest accrued thereon.\n<\/p>\n<p>6.\tMr. Mrugesh Jani,<br \/>\nlearned advocate appearing for the Official Liquidator has relied on<br \/>\nthe Official Liquidator Report dated 12.9.2007 and stated that the<br \/>\nCompany or the Managing Director has neither clarified at any point<br \/>\nof time about the actual transaction of the property made by the<br \/>\nowner with the Company nor produced any certified copy of resolution<br \/>\nshowing or disclosing the facts of the same.  He has, therefore,<br \/>\nsubmitted that since the property was shown as Registered Office of<br \/>\nthe Company after passing of provisional winding up order by this<br \/>\nCourt and since the sale deed for the said property was made in<br \/>\nfavour of the said Mr. Chavda on 24.1.2002, the same is hit by<br \/>\nSection 531 of the Companies Act, 1956 and hence order passed by the<br \/>\nlearned Company Judge should not be interfered with.\n<\/p>\n<p>7.\tHaving heard the<br \/>\nlearned advocates for the respective parties and having gone through<br \/>\nthe impugned order passed by the learned Company Judge as well as the<br \/>\ndocuments produced before the learned Company Judge and before this<br \/>\nCourt, we are of the view that the Company in liquidation has nothing<br \/>\nto do with the property in question as the said property was neither<br \/>\ngiven on rent to the Company nor the Company was owner of the said<br \/>\nproperty.  Simply because the said property was used by way of an<br \/>\naddress of Registered Office of the Company it cannot be said that<br \/>\nthe said property was given on rent to the Company or the Company has<br \/>\npurchased the said property.  The present appellant has purchased the<br \/>\nsaid property by registered sale deed and he became absolute owner of<br \/>\nthe said property.  Section 531 of the Companies Act, 1956 cannot be<br \/>\napplied in the present case as the property in question does not<br \/>\nbelong to the Company in liquidation.  We are, therefore, of the view<br \/>\nthat the order passed by the learned Company Judge is required to be<br \/>\nquashed and set aside and accordingly it is quashed.  An amount of<br \/>\nRs.50,000\/- which was ordered to be deposited at the time of passing<br \/>\nof interim order, shall be refunded to the present appellant<br \/>\nalongwith the interest accrued thereon.  Office is directed to encash<br \/>\nthe fixed deposit prematurely, if necessary,  and hand over the<br \/>\namount alongwith the interest accrued thereon to the appellant<br \/>\nforthwith.\n<\/p>\n<p>8.\tThe appellant is<br \/>\nrelieved from the Undertaking filed on 25.4.2007 pursuant to the<br \/>\norder passed by this Court on 25.4.2007 in OJ Civil Application<br \/>\nNo.187 of 2007.\n<\/p>\n<p>9.\t This appeal is<br \/>\naccordingly allowed without any order as to costs.\n<\/p>\n<p>\t\t\t\t\t\t\t\t ( M. S. SHAH,<br \/>\nJ.)<\/p>\n<p>\t\t\t\t\t\t\t\t    (K. A.\n<\/p>\n<p>PUJ, J.)<\/p>\n<p>kks             <\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Rajesh vs The on 8 November, 2011 Author: Mohit S. K.A.Puj, Gujarat High Court Case Information System Print OJA\/62\/2007 7\/ 7 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD O.J.APPEAL No. 62 of 2007 In OFFICIAL LIQUDATOR REPORT No. 81 of 2002 In COMPANY PETITION No. 160 of 2000 ================================================= RAJESH [&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-11368","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>Rajesh vs The on 8 November, 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\/rajesh-vs-the-on-8-november-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rajesh vs The on 8 November, 2011 - Free Judgements of Supreme Court &amp; 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