Ol Of Various Companies (In Liqn) vs. Na
Facts
The Official Liquidator (OL) filed a report seeking permission to pay outstanding bills totaling Rs. 54,280/- to M/s. e-Procurement Technologies Ltd. for six companies (Sr. No. 1 to 5) from their respective company accounts where funds are available. Additionally, the OL sought permission to pay Rs. 7,080/- for the sixth company (Sr. No. 6) from a common pool account, subject to reimbursement from future asset sales. The e-Procurement Technologies Ltd. was appointed by the OL to conduct e-auctions for the assets of companies in liquidation, as directed by the High Court. The service provider charges Rs. 10,000/- plus applicable GST for successful e-auctions and Rs. 6,000/- plus applicable GST for unsuccessful ones, per company. The bills submitted by the e-Procurement Technologies Ltd. are detailed in the report, with companies at Sr. No. 1 to 5 having funds, while Sr. No. 6 does not.
Held
The Court allowed the Official Liquidator's report in terms of prayers (a) and (b). Prayer (a) permitted the OL to pay outstanding bills of Rs. 54,280/- to M/s. e-Procurement Technologies Ltd. for five companies from their respective company accounts where funds are available. Prayer (b) permitted the OL to pay outstanding bills of Rs. 7,080/- for the sixth company from the common pool account, subject to reimbursement from funds realized from the sale of the company's assets. The Court considered the facts presented and the documents produced with the report. The reasoning is based on the necessity of these payments for services rendered in conducting e-auctions as per court directions. The ratio decidendi is that the Official Liquidator can be permitted to disburse funds for essential services, including those attracting GST, from company liquidation accounts or common pool accounts under court supervision, provided the procedural requirements and financial prudence are met.
Key Issues
1. Whether the Official Liquidator can be permitted to pay outstanding bills of Rs. 54,280/- to M/s. e-Procurement Technologies Ltd. for six companies from their respective accounts or a common pool account, considering the applicable GST (service tax) on the e-auction services provided. Petitioner's Argument (Official Liquidator): The Official Liquidator argued that the payments are necessary for services rendered by M/s. e-Procurement Technologies Ltd. for conducting e-auctions of company assets, as directed by the Court. The OL sought permission to utilize available funds in the respective company accounts for five companies and a common pool account for the sixth, pending realization of assets. The charges include applicable GST (service tax). Revenue/State's Argument: The judgment does not record any specific arguments from the revenue or state. The issue revolves around the payment of bills which include GST, and the court's direction on how these payments should be made from company funds.
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Cause title — parties, addresses and appearances
ORAL ORDER
Heard Mr. Pathik Acharya, Learned Counsel for the Applicant,
The Official Liquidator has filed present report with following prayers:- a)“This Hon'ble Court may be pleased to permit the Official Liquidator to pay outstanding bills of Rs. 54,280/- to M/s. e- Procurement Technologies Ltd. for Sr. No. 1 to 5 Companies mentioned in Table-A from their respective companies account where have funds are available. b)This Hon'ble Court may be pleased to also permit the Official Liquidator to pay outstanding bills of Rs. 7080/- to M/s. e- Pr
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