M/S CEAT FINANCIAL SERVICE LTD. v. M/S H-LON HOISIERY LTD.

1. By the present application filed under Section 481 of the Companies Act, 1956, the OL seeks permission for dissolution of the company, H-LON HOSIERY LTD. under liquidation and the OL, Delhi, be discharged as its Liquidator. Prayer is also made by the OL that the balance amount may be permitted to be transferred to the Reserve Bank of India after deduction of the liquidation expenses and government commission as on the date of dissolution.

2. It is stated in the said application that the Official Liquidator was appointed as a Provisional Liquidator of H-Lon Hosiery Ltd. on 17.12.1997 and the Company was wound up on 24.12.1999 by this Court and the Official Liquidator was appointed as the Liquidator of the company (In Liqn). It is further stated that the Registered Office of the Company was 2017:DHC:2539 shown as C-4/1, Main Road, Wazirpur Industrial Area, New Delhi. The said property was sealed by the Official Liquidator on 05.11.1998. It was disclosed by Sh. Rattan Lal Garera, Ex-Director, in the Statement recorded under Rule 130 of the Companies Court Rules, 1959, that the Regd. Office was rented premises. It was stated by IFCI that the said property was attached on account of certain dues owed to IFCI, therefore in terms of order dated 12.03.2014, the possession of the Registered office was handed over to the IFCI on 30.06.2014 after issuing letter to all ex-directors including Ratan Lal Garera.

3. The factories of the Company situated at 63, Miles Stone, G.T. Karnal Road, Gannaur Distt. - Sonepat, Haryana and C-18, Sector-7, Noida were sealed and the possession of the premises was taken over on 26.09.1998 & 25.09.1998 respectively. The above mentioned assets of the Company (In Liqn.) were sold and the rented premises were handed over. The details are as under:-

1. Plant & Machinery including articles/moveable assets lying at Regd. Office-4/1, Main Road, Wazirpur Industrial Area, Delhi. Sold for a sum of Rs. 7,80,000/- in terms of this Court’s order Order dated 23.09.2004. In compliance of this Court’s order dated 01-03-07, the possession of Plant and Machinery and other moveable assets lying at the Regd. Office was handed over to auction purchaser Mr. Virender Kumar. Land & Building Regd. Office-4/1, Main Road, Wazirpur Industrial Area, Delhi. Rented In terms of this 12.03.14 the possession handed over to IFCI on 30.06.2014 and records shifted to record room of this office at South Block.

2. Plant & Machinery, Furniture & Fixture at 63, Miles Stone, G.T. Karnal Road, Gannaur Distt. - Sonepat, Haryana. Sold for a sum of Rs. 5,30,000/- in dated 23.09.2004. In terms of this 18.11.04 the over to the auction purchaser Shri Jugal Kishore on 04.12.04. Land & Building at 63, Miles Stone, G.T. Karnal Road, Gannaur Distt. - Sonepat, Haryana Rented In terms of this 24.02.05 and 03.03.05 passed in C.A. No. 826/04 the possession was handed over to landlord/director (Mr. Jaipal) of M/s Alka India Private Limited on 14.03.05.

3. Land & Building & Plant & Machinery at C-18, Sector-7, Noida Entire unit alongwith land & building sold for Rs. 48,00,000/through UPFC, in In terms of this 25.03.2004 the over to the purchaser Aryan Management Services Private

4. The claims were invited by the Official Liquidator by an advertisement published in newspapers namely “The Hindustan Times” and “Amar Ujala” on 25.06.2007 and the last date for submitting the claims was mentioned as 15.08.2007. After publication of the notice, the Official Liquidator received 07 claims from the Secured creditor/unsecured creditors/ preferential creditors. The said claims are stated to have been examined; and on the basis of funds available, the amounts disbursed to PICUP & State Bank of Patiala are on pro-rata basis after approval taken from this Court.

5. It is also contended by the Official Liquidator that since the respondent company has no assets to be realized and no recoveries are to be effected, hence there would be no useful purpose in continuing with the present proceedings and the respondent company be therefore be dissolved forthwith in terms of section 481 of the Companies Act, 1956 and the Official Liquidator be discharged as liquidator of the company.

6. The Official Liquidator relied upon the judgment of the Supreme Court in the case of Meghal Homes (P) Limited Vs. Shree Viwas Girni K.K.Samiti&Ors (2007) 7SCC 753, wherein it was held as follows: “When the affairs of the company had been completely wound up or the Court finds that the Official Liquidator cannot proceed with the winding up of the company for want of funds or for any other reason, the court can make an order dissolving the company from the date of that order. This puts an end to the winding up process.” dated 25.03.2004. Limited, Noida on 16.04.2004 by UPFC.

7. In view of the above decision of the Supreme Court; and the facts and circumstances of the case, the liquidation proceedings deserve to be brought to an end. Consequently, H-Lon Hosiery Ltd is dissolved.

8. The fund position of the Company as on 20.12.2016 is Rs.46,169/-. It is stated by the Official Liquidator that an amount of Rs.38,769.66/- is required to be retained as against contingent liabilities/expenses/for audit/Govt. fees etc. The Official Liquidator is directed to retain the said amount and deposit the balance amount with the Reserve Bank of India in terms of Section 555 of the Companies Act, 1956 as undistributed assets after deduction of Liquidation expenses and Govt. Commission as on the date of dissolution. Copy of this order be served to ROC within 30 days. The petition, along with the application, is disposed off and the Official Liquidator is discharged.

JAYANT NATH, J. MAY 11, 2017