M/S.Enso Secutrack Limited. vs. The Chief Manager

Facts

This matter concerns a company in liquidation, M/s. Enso Secutrack Limited. The Official Liquidator filed an application under Section 457(1)(e) of the Companies Act, 1956, read with Rule 9 of the Companies (Court) Rules, 1959. The application sought several directions, including taking a valuation report on record, providing a copy of this report to the Official Liquidator, constituting an Assets Sale Committee, permitting the sale of a specific flat and movable assets, and allowing payment of the valuer's fee. The valuation report, submitted by Sri Pradeep Kaparthi, valued the fixed assets (flat) at approximately Rs. 75,12,000/- and movable assets at approximately Rs. 3,53,000/-. The Court had previously appointed the valuer by an order dated 19.11.2023 in Company Application No. 199 of 2022.

Held

The Court held that the valuation report submitted by the appointed valuer, Sri Pradeep Kaparthi, should be taken on record. The Registry was directed to furnish a copy of this report to the Official Liquidator to enable further steps. The Court also granted the other incidental prayers set out in the application, which included permitting the Official Liquidator to make the payment for the valuer's services as per the invoice dated 08.10.2024, amounting to Rs. 25,000/- plus GST, from the funds of the company in liquidation. The Court effectively granted all the prayers made in the application, thereby allowing the Official Liquidator to proceed with the sale of assets and related administrative actions. The specific directions for the constitution of an Assets Sale Committee and the permission to sell the flat and movable assets are implicitly granted by the order allowing the incidental prayers.

Key Issues

1. Whether the valuation report submitted by the appointed valuer should be taken on record? 2. Whether the Registry should provide a copy of the valuation report to the Official Liquidator? 3. Whether directions should be issued for the constitution of an Assets Sale Committee comprising the Official Liquidator, an officer from the Official Liquidator's office, and a secured creditor (ARCIL)? 4. Whether the Official Liquidator should be permitted to sell the specified flat and movable assets as per the valuation report? 5. Whether the Official Liquidator should be permitted to pay the valuer's fee of Rs. 25,000/- plus GST from the company's funds? Contentions: Petitioner (Official Liquidator): Argued for the grant of all reliefs sought in the application, including taking the valuation report on record, providing it to the Official Liquidator, forming an Assets Sale Committee, permitting the sale of assets, and authorizing payment of the valuer's fees. Relied on the appointment order for the valuer and the submitted valuation report. Revenue/State: No arguments were recorded for the Revenue or State in the judgment.