M/S.Sirsilk LTD. (In Liqn.) vs. Industrial Development Bank Of INDIA

Facts

This matter concerns Company Application No. 535 of 2021, filed by the Official Liquidator of M/s. Sirsilk Ltd. (in liquidation) before the Telangana High Court. The application sought permission to appoint a Registered Chartered Valuer to assess landed property in Kothapet, Kosini, and Chintaguda Villages, Sirpurkhagaznagar Mandal. The Official Liquidator also requested directions for the Tahsildar to depute surveyors for demarcating land, identifying encroachers, and listing details of occupied land. Furthermore, the application sought to direct the Commissioner of Kagaznagar Municipality not to allot house/assessment numbers to encroachers without verifying sale deeds executed by the Official Liquidator. The Official Liquidator also sought permission to pay an initial fee of Rs. 75,000/- (excluding GST) to the valuer from the company's funds.

Held

The Court granted the prayers made by the Official Liquidator. Specifically, the Court appointed Mr. R.S. Ramachandra Murthy as the valuer for the landed property. The Official Liquidator was permitted to pay an initial fee of Rs. 75,000/- (Rupees seventy-five thousand only, excluding GST) to the valuer from the Estate and Establishment Fund, subject to recoupment upon realization of assets. The Court also granted the other incidental prayers set out in the application. The reasoning was based on the reasons stated in the accompanying affidavit, indicating the necessity of these steps for the proper management and liquidation of the company's assets. The ratio decidendi is that the Court will grant necessary directions to the Official Liquidator to protect and realize the assets of a company in liquidation, including appointing valuers and directing relevant authorities to assist in the process.

Key Issues

1. Whether the Official Liquidator should be permitted to appoint a Registered Chartered Valuer for the valuation of the landed property of the company in liquidation situated at Kothapet, Kosini, and Chintaguda Villages, and to direct the submission of the report in a sealed cover. 2. Whether the Tahsildar should be directed to depute surveyors to identify survey numbers, demarcate land extent, identify encroachers, and list details of occupied land based on a previous survey report. 3. Whether the Commissioner of Kagaznagar Municipality should be directed not to allot house/assessment numbers to encroachers without verifying sale deeds executed by the Official Liquidator. 4. Whether the Official Liquidator should be permitted to remit an initial fee of Rs. 75,000/- (excluding GST) to the appointed valuer and to place the final bill before the Court for approval and payment. Contentions: Petitioner (Official Liquidator): Argued for the necessity of these directions to protect and realize the assets of the company in liquidation, particularly concerning the valuation of land and the prevention of unauthorized allotments to encroachers. Relied on Sections 456(1)(A) and 457 of the Companies Act, 1956, and Rules 1 and 114 of the Companies (Court) Rules, 1959. Revenue/State: No specific arguments recorded for the respondents (State of Telangana, Industrial Development Bank of India, Tahsildar, Commissioner of Kagaznagar Municipality) in the provided text.