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2002 DIGILAW 857 (RAJ)

Official Liquidator of Maharaja Kishangarh Mills Ltd. (In Liquidation) v. Maharaja Kishangarh Somyag Mills Co. (Trans. ) Ltd.

2002-04-24

S.K.KESHOTE

body2002
JUDGMENT 1. Heard the learned counsel for the applicant and perused the memo of the application. 2. This application is filed by the applicant, the official liquidator of Maharaja Kishangarh Mills Ltd. (in liquidation) under rule 9 of the Companies (Court) Rules, 1959 ('the Rules'). In this application, it is prayed that the court may direct to the respondents to deliver the certificates of 66059 preference shares without any delay and/or pass such order as may be thought fit and proper. 3. Maharaja Kishangarh Somyag Mills (in liquidation) was leased out in the first instance to Tikam Chand Bhagchand for a period of 20 years and later on by an agreement dated 22-10-1942 the lessees Tikam Chand Bhagchand were allowed to float a company and thereby Maharaja Kishangarh Mills Co. Ltd. came to be incorporated on 24-10-1942. In the application Maharaja Kishangarh Somyag Mills is described as the 'old mill' and Maharaja Kishangarh Mills Co. Ltd. as 'new mill'. 4. In terms of the agreement dated 22-10-1942 fully paid preference shares of Rs. 100 each numbering 66059 were allotted to the old company on 21-1-1943. Formal agreement was also entered into between old and new companies on 22-1-1943. 5. On the winding up petition filed by Standard General Assurance Company Ltd., the new company was ordered to be wound up vide order dated 11-4-1958. The old company preferred claim before the official liquidator which included the amount due under the head of dividend on accumulated preference shares upto 7-4-1958 including interest thereon. The amount due under the head dividend was Rs. 3,49,233.31. While deciding the number of claims of the old company the official liquidator rejected the aforesaid claim vide order dated 11-1-1960. Against this order an appeal was preferred by the old company which was registered as S.B. Miscellaneous Company Appeal No. 4 of 1960. That appeal was rejected by the court. In the judgment dated 4-7-1960 the claims which have been disposed of by the official liquidator vide its order dated 11-1-1960 had been dealt with by the court. One of them was in regard to return of the properties, the assets belonged to the old company. One of the creditors filed D.B. Special Appeal No. 40 of 1960. In this the old company also preferred its cross-objections. The special appeal and the cross-objections came to be dismissed by the Division Bench of this Court on 16-1-1964. One of them was in regard to return of the properties, the assets belonged to the old company. One of the creditors filed D.B. Special Appeal No. 40 of 1960. In this the old company also preferred its cross-objections. The special appeal and the cross-objections came to be dismissed by the Division Bench of this Court on 16-1-1964. The Official Liquidator in compliance of the order dated 4-7-1960 had given the possession of the movable and immovable properties but in regard to certain properties dispute arose and, therefore, the old company preferred S.B. Miscellaneous Case No. 7 of 1972. In that case number of applications were preferred and those had been disposed of by the court. Special Appeal Nos. 7, 8 and 9 of 1983 and 31 of 1985 were preferred. The first two of them were preferred by the official liquidator and the later by the old company. These special appeals were decided by the Division Bench of the Court on 3-11-1995. In Miscellaneous case Na 7 of 1972 and in the special appeal preferred therein the dispute had not been raised in regard to the preference shares. However, after the decision dated 3-11-1995, when large number of disputes were came to be decided arising out of execution matter and when the review application of the official liquidator was came to be dismissed by the Division Bench, the official liquidator requested the respondent for return of the certificates of the preference shares for cancellation. The respondent vide letter dated 1-2-1998 refused to deliver the same to the official liquidator on the ground that as per order of this Court surrender of the share certificates was not necessary as they already stood cancelled. It is submitted that the shares which have been cancelled by the court have to be surrendered to the official liquidator so that they are not misused. It is further submitted that the cancelled share certificates are the property of the company. Despite of demand made by the official liquidator to the respondent for surrender of the cancelled share certificates when nothing has been done, this application has been filed. 6. The respondents have not cared, bothered or concerned to oppose this application. Even they have not cared to file reply to it. The averments made in this application stand uncontroverted. Nobody is present on behalf of the respondents to orally contest this application. 6. The respondents have not cared, bothered or concerned to oppose this application. Even they have not cared to file reply to it. The averments made in this application stand uncontroverted. Nobody is present on behalf of the respondents to orally contest this application. In view of this factual position, no other order can be made in this order except that this application is to be allowed. 7. Accordingly, this application is allowed and the respondents are ted to deliver the certificates of 66059 preference shares to the a] liquidator within a period of one month from the date of receipt certified copy of this order. No order as to costs. *******