Apex Court observed when issue of revival of company is still pending, issue as to leased property to company cannot be finally decided
Civil Appeal No. 3147- 3149 of 2013
Bench: Justice Ranjan Gogoi; Justice Prafulla C. Pant
Case Brief: The present appeals arose from the special leave petitions which were granted by this court. In the facts of the case which the court seemed adequate for consideration, a predecessor of the appellants had leased out a suit land in favour of one- entity for the period of 199 years by lease deed which was executed in the year 1916. And in the year 1984, the secured creditor of the said entity found filing a company petition where they sought for winding up of the said entity, while the said petition was pending some legal heirs of predecessor filed a suit claiming permanent injunction against the selling of the assets of the entity, especially, the selling of leased property. Thereafter, when the Company judge directed the winding up of the entity and also directed the taking of charge by the Official liquidator so appointed, of all assets of the company, then the said legal heirs had moved application for return of the leased property and also for others restraining official liquidator from selling/ transferring the leased property. However, while the pending application, some properties of company was sold out in public auction. Even in the year 2004, the advertisement was issued by official liquidator for selling of the leased property. This time the legal heirs filed company application seeking declaration that official liquidator had no right to sell the leased property, however, such applications were rejected by the Company judged. Even the appeals before the High Court were also not survived and dismissed. Now, the bench has observed that the main plank on which the appellants have based their case is the operation of Section 12, section 13 (1) (e) and section 13 (1) (k) of the earlier Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. The bench after having considered all such provisions and their applicability in the present matter, also observed that the mere fact that the company has been ordered to be wound up cannot be a ground for directing the Official Liquidator for handing over the possession of the Land to the owners inasmuch as the company is liquidation continues to maintain its corporate existence till it got dissolved after completion of such proceedings. Also bench saw that both the parties in the case submitted that revival of entity is a live issue which is pending before the High Court of Gujarat and this fact is considered of much importance and as such the order of High Court affirmed to some extent.
Read the Judgement: Jabal C.Lashkari & Ors. Vs. Official Liquidator (Prasad Mills Ltd.) & Ors