The Delhi High Court ordered for Dissolution of the company under section 481 of the Companies Act, 1956 as none of the Ex-Directors filed the Statement of Affairs and also failed to submit the records of the company.
Title: Ganga Sagar & Co. P. LTD v. Ujval Singh Suri & Anr.
Decided on: 26th September, 2023
+CO. APPL. 692/2023 in CRL.O (CO.) 9/2004
Introduction
The Delhi High Court ordered the Dissolution of the Company U/S 481 of the Companies Act, 1956, as per the Judgement given in case of Meghal Homes (P) Ltd Vs Shree Niwas Girni K.K Samiti and Ors., (2007) 7SCC 753, as the Ex- Directors failed to file the Statement of Affairs and also failed to submit the records of the company and due to lack of funds the Official Liquidator Couldn’t Continue with Winding up of Company.
Facts of the Case
The current petition is put in place by the Official Liquidator Appointed for Ganga Sagar & Co. P. LTD, Under Section 481 of the Companies Act, 1956, to discharge him also for dissolution company. The official Liquidator was appointed vide order dated 20th August 2002 and the same information was also published in one Hindi and one English Newspaper on 14th September 2003, Named Dainik Jagran and The Statesman respectively, and in the Delhi Gazette on 24th October 2003.
On 4th August 2003 the concerned officials on Behalf of the Official Liquidator paid a visit to the registered office of the company however that day the possession couldn’t be taken over as the Manager of the said address told the officer that no company by the name of Ganga Sagar & Co. Pvt Ltd existed at that address.
The Concerned officials had also admitted that upon visiting the factory of the company on 9th August 2003 they couldn’t take over the possession of that also because the factory had been auctioned by MPFC, Indore on 12th September 2001 to Ms/Gatiman Auto Pvt. Ltd., the officials also claimed that the Ex-Directors of the Company in dispute, Mr. Ujval Sagar Suri and Narinder Suri didn’t even file the statement of affairs within 21 days as required hence the Official Liquidator filed for a Criminal Complaint under Section 454 of the Companies Act, 1956.
It was also given by the Official Liquidator in this present petition that as per one order passed on 11th October, 2012, both the Ex Directors were directed to deposit a sum of Rs. 44,14,214.17 the amount which had to be recovered by the Company (In Liqn.) The same order was also sustained by the Division Bench of the present court in an order passed on 20th August 2014. And as per the present application that amount has been deposited with the Office of Official Liquidator.
The Notices inviting claims as per another previous order were also published in one Hindi and one English Newspaper, and the Deadline for submission of the claims was 26th January 2018.
After various settlements of claims, the OL submitted that they do not have sufficient funds or any further assets, moveable or immovable, through which any money can be realized for the Company in the process of liquidation. Hence, the company should be dissolved.
Court analysis and decision
The Court after listening to all the arguments presented by the Official Liquidator analysed that after settling all the claims, that the OL don’t have extra funds or any other moveable or immoveable asset related to the company through which any credit can be realised for the company hence relying on the Judgement given in Meghal Homes (P) Ltd Vs Shree Niwas Girni K.K Samiti and Ors., (2007) they passed an order on the grounds that since the Liquidator couldn’t continue with the winding up of the company for need of funds or various other valid reasons hence they ordered the OL to shut the books of account of the Company and disposed all pending applications related to the matter and cancelled the next date of hearing.
“PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.”
Written by- Aditi