O L Of M/S Mandvi Spinning Mills LTD(In Liquidation) vs. Regional Manager

Held

The Court accepted the Official Liquidator's report and granted permission to pay the professional bill of Rs. 7,080/- to M/s. E-Procurement Technologies Ltd., which included the applicable GST. The Court found merit in the Official Liquidator's submission that the payment was for professional services rendered in attempting to sell the assets of the company in liquidation, as per the court's earlier directions. The fact that no bids were received did not absolve the company in liquidation from its liability to pay for the services utilized in the process. The Court reasoned that the services were essential for the liquidation process, and the payment was in accordance with the professional charges and applicable taxes. The Official Liquidator's report was accepted in terms of paragraphs 5(a) and 5(b), and the report was disposed of accordingly. No specific issue was left undecided.

Facts

The Official Liquidator (OL) of M/s. Mandvi Spinning Mills Ltd. (in liquidation) filed a report seeking permission to pay a professional bill of Rs. 7,080/- (including 18% GST) to M/s. E-Procurement Technologies Ltd., an e-auction service provider. This payment was for services rendered in relation to the sale of the company's assets. The OL had published advertisements in various newspapers as per a previous court order dated 12/04/2018. However, despite the advertisements, no tenders were sold, and no offers were received from prospective buyers by the last date. The OL also relied on a status report from the e-procurement agency dated 09/05/2018 and was in the process of reconvening an assets sale committee meeting.

Key Issues

1. Whether the Court should permit the Official Liquidator to pay the professional bill of Rs. 7,080/-, which includes GST, to the e-auction service provider for services rendered in the sale of assets of a company in liquidation. Petitioner's Argument (Official Liquidator): The Official Liquidator argued that the payment was necessary for the professional services availed for the e-auction of the company's assets. The amount included GST as applicable. The OL was acting in furtherance of the court's previous order to sell the company's assets. The failure to receive bids did not negate the services rendered by the e-procurement agency. Respondent's Argument (Revenue/State): The judgment does not record any specific arguments from the respondent revenue or state authorities. The matter appears to have been decided based on the report and submissions of the Official Liquidator.