D. V SHYLENDRA KUMAR, J. ( 1 ) COMPANY Application Nos. 106 of 2002 and 1795 of 2003 are filed in company Petition No. 149 of 1998. ( 2 ) THE earlier application namely C. A. No. 106 of 2002 is by the secretary, Department of Commerce and Industries, Government of karnataka, under the provisions of Rules 6 and 9 of the Companies (Court) Rules, 1959, praying for permission of the Court to appoint the deputy Commissioner, Dharwad District, as the Independent Liquidator in place of the Divisional Commissioner, Belgaum, who had been earlier permitted to be appointed as the Liquidator of the Company in terms of the order dated 2-3-2000 passed by this Court in C. A. No. 56 of 1999. The reason attributed is that the post of Divisional Commissioner, was about to be abolished and as such in his place, the Deputy commissioner, Dharwad District, Dharwad, may be permitted to be so appointed. ( 3 ) C. A. No. 1795 of 2003 is filed subsequently in the very Company petition purporting to be by the very Company represented by its managing Director praying for permission of the Court to be granted in favour of the applicant to appoint Ms. R. S. Sujatha, Additional Director (Disinvestment), Department of Disinvestment, to be the Independent liquidator of the Company for the purpose of discharging her duties and functions as Liquidator under the provisions of the Companies Act, 1956 and under the supervision of the Court. ( 4 ) THESE applications have come up for orders along with Company application No. 762 of 2003 filed by certain persons who claim ownership of the land wherein the factory of the Company under liquidation is located and that though the lease of the land in favour of the Company was one perpetuity, the terms of the deed provided that the land will revert to the owners if the Company is ordered to be wound up. It is on such premise, the application is filed praying for directions to any person in charge of the affairs of the respondent-Company to hand over possession of the schedule premises in favour of the applicants. ( 5 ) SRI Narayana, learned Government Pleader submits that he appears on behalf of respondents 2 and 3 in C. A. No. 762 of 2003 and the applicants in C. A. Nos. 106 of 2002 and 1795 of 2003. ( 5 ) SRI Narayana, learned Government Pleader submits that he appears on behalf of respondents 2 and 3 in C. A. No. 762 of 2003 and the applicants in C. A. Nos. 106 of 2002 and 1795 of 2003. Though no written objections have been filed in C. A. No. 762 of 2003 on behalf of respondents 2 and 3, Sri Narayana, learned Government Pleader appearing for these respondents has opposed the prayer in this application and has also submitted that there are certain developments before the Government particularly as there is a proposal for acquisition of the very land itself by the Government and that a bill has been introduced for the purpose of said acquisition before the Assembly and the bill has been passed but is awaiting permission of President of India etc. , and on such premise requests the matter to be adjourned by not less than 8 to 10 weeks. ( 6 ) I have also heard Sri Ramdas, learned Counsel appearing for the applicant in C. A. No. 762 of 2003, Sri Deepak, learned Counsel appearing for the Official Liquidator, Sri N. Krishnananda Gupta, learned Counsel appearing for the 2nd respondent in C. A. No. 106 of 2002 along with the learned Government Pleader. ( 7 ) M/s. KARNATAKA State Textiles Limited is a Company which was ordered to be wound up by this Court in terms of order dated 5-11-1998 pursuant to the recommendation of the Board for Industries and financial Reconstruction as per its minutes dated 6-7-1998 and as the board was of the opinion that the Company should be wound up and the official Liquidator was directed to take all necessary steps. ( 8 ) IT appears that there was not much progress inasmuch as the state Government which claims the ownership of the Company appears to have not taken any action to hand over the assets of the Company to the Official Liquidator nor do they appear to have complied with any of the requirements of Section 454 of the Companies Act. ( 9 ) HOWEVER, the Official Liquidator appears to have filed an application in C. A. No. 56 of 1999 impleading the Secretary to the department of Commerce and Industries, Government of Karnataka as the 1st respondent and the Chief Engineer (General), Karnataka electricity Board, Cauvery Bhavan, Bangalore as the 2nd respondent praying for directions to the 1st respondent to appoint any Officer of the state Government as the Special Officer to process and administer the liquidation proceedings independently in place of the Official Liquidator and for certain further directions to the 2nd respondent-Official of the electricity Board. This application came to be ordered in terms of the order dated 2-3-2000 where under this Court permitted the 1st respondent, the Secretary to the Government of Karnataka, to appoint the Divisional Commissioner, Belgaum Division, as the Independent liquidator to take over the matter in respect of the applicant-Company and other consequential direction to the official of the Electricity Board etc. , for restoration of power etc. It is subsequent to this order that C. A. No. 106 of 2002 had been filed praying for substitution of the Deputy commissioner of Dharwad in place of the Divisional Commissioner, belgaum, as it was pleaded in the application that the post of the divisional Commissioner was about to be abolished. ( 10 ) THE applications had been pending before the Court for a considerable time and were being adjourned at the instance of the learned Government Pleader. ( 11 ) SRI Ramdas, learned Counsel appearing for the applicants in C. A. No. 762 of 2003 who claimed ownership and reversion of the lands leased in favour of the Company has expressed that the applications are required to be ordered as otherwise the matter is being indefinitely postponed, that no one is exhibiting any responsibility for the affairs of the Company whether to wound up or to keep it alive, that the interest of the applicants also is suffering due to the inaction on the part of the persons who claim to be the persons in charge of the affairs of the company namely the person who describes himself as the Managing director of the Company or even other officials of the State Government. ( 12 ) SRI Deepak, learned Counsel appearing for the Official Liquidator who had been asked to make submissions on the legal position has drawn my attention to the provisions of Sections 448 and 449 of the companies Act and submits that there is no provision under the companies Act to appoint any Independent Liquidator when the winding up proceedings are under the supervision of the Court. Learned counsel submits that even the permission to appoint the Divisional commissioner earlier by this Court in terms of the order dated 2-3-2000 is not supported by the statutory provisions. Section 448 reads as under:"448. Appointment of Official Liquidator.- (1) For the purposes of this Act, so far as it relates to the winding up of a company by the Tribunal, there shall be an Official Liquidator who.- (a) may be appointed from a panel of professional firms of Chartered Accountants, Advocates, Company secretaries, costs and works accountants or firms having a combination of these professions, which the central Government shall constitute for the tribunal; or (b) may be a body corporate consisting of such professionals as may be approved by the Central government from time to time; or (c) may be a whole-time or a part-time officer appointed by the Central Government: provided that, before appointing the Official Liquidator, the tribunal may give due regard to the views or opinion of the secured creditors and workmen. (2) The terms and conditions for the appointment of the Official liquidator and the remuneration payable to him shall be.- (a) approved by the Tribunal for those appointed under clauses (a) and (b) of sub-section (1), subject to a maximum remuneration of five per cent of the value of debt recovered and realisation of sale of assets; (b) approved by the Central Government for those appointed under clause (c) of sub-section (1) in accordance with the rules made by it in this behalf. (3) Where the Official Liquidator is an officer appointed by the central Government under clause (c) of sub-section (1), the central Government may also appoint, if considered necessary, one or more Deputy Official Liquidators or Assistant Official liquidators to assist the Official Liquidator in the discharge of his functions, and the terms and conditions for the appointment of such Official Liquidators and the remuneration payable to them shall also be in accordance with the rules made by the Central government. (4) All references to the 'official Liquidator' in this Act shall be construed as reference to the Official Liquidator specified in sub-section (1), or to the Deputy Official Liquidator or Assistant official Liquidator referred to in sub-section (3), as the case may be. (5) The amount of the remuneration payable shall.- (a) form part of the winding up order made by the tribunal; (b) be treated as first charge on the realisation of the assets and be paid to the Official Liquidator or to the central Government, as the case may be. (6) The Official Liquidator shall conduct proceedings in the winding up of a company and perform such duties in reference thereto as the Tribunal may specify in this behalf: provided that the Tribunal may- (a) transfer the work assigned from one Official liquidator to another Official Liquidator for the reasons to be recorded in writing; (b) remove the Official Liquidator on, sufficient cause being shown; (c) proceed against the Official Liquidator for professional misconduct". ( 13 ) WHILE there is to be one Official Liquidator attached to each High court and he is appointed by the Central Government, the Central government may also appoint one or more Deputy or Assistant Official liquidator to assist the Official Liquidator in the discharge of his functions. Except for such appointments, there is no provision for appointing an independent person or a third party as an Official Liquidator in liquidation proceedings under the supervision of the Court. ( 14 ) IT is noticed from the record that a report characterised as a status report has been submitted to this Court on 28-1-2003 by a person who has signed on behalf of the Company as Independent Liquidator. The report inter alia seeks to indicate certain steps taken by the liquidator for setting the dues of the employees and the electricity charges payable to the Board, that several litigations were pending by and against the Company, that is practically of considerable difficulty in protecting the properties of the Company etc. ( 15 ) SUBMISSION of Sri Narayana, learned Government Pleader appearing for the State Government is that the post of Divisional commissioner does not exist as of now and in that view of the matter, there is no Liquidator and therefore, the prayer made in Company application No. 1795 of 2003 permitting the appointment of Ms. ( 15 ) SUBMISSION of Sri Narayana, learned Government Pleader appearing for the State Government is that the post of Divisional commissioner does not exist as of now and in that view of the matter, there is no Liquidator and therefore, the prayer made in Company application No. 1795 of 2003 permitting the appointment of Ms. R. S. Sujatha as the Liquidator may be allowed. ( 16 ) THIS Court in terms of the order dated 5-11-1998 while passing the order for winding up the affairs of the Company did appoint the official Liquidator as the Liquidator. It was in place of the Official liquidator that the State Government sought permission to appoint the divisional Commissioner in terms of the provisions of the Act. As there could have been a Deputy or Assistant Liquidator appointed by the central Government to supplement the functioning of the Official liquidator attached to this Court, at his best the order passed by this court for permission for the appointment of the Divisional commissioner as the Liquidator can be construed and taken to be for the appointment of an Assistant or Deputy Liquidator to supplement the functions of the Official Liquidator. The action taken by the Divisional commissioner in such capacity is not disputed to be under the control and supervision of this Court. In view of the subsequent development that the post itself has been abolished, it is the responsibility of the Official liquidator alone to over look the winding up proceedings of the Company. ( 17 ) INSOFAR as the present application for permission to appoint Ms. R. S. Sujatha, it is only to be observed that the Act does not enable such appointments but on the other hand it is always open to the State government to seek for appointment of such suitable person as an assistant or Deputy Liquidator for the precise purpose who can function under the control and supervision of this Court and act as supplementing the functioning of the Official Liquidator. Under the circumstances, the Company Application Nos. 106 of 2002 and 1795 of 2003 are rejected reserving liberty to the State Government to move the central Government for appointment of a suitable person as an assistant or Deputy Liquidator. The Official Liquidator is directed to take control of the affairs of the Company. Under the circumstances, the Company Application Nos. 106 of 2002 and 1795 of 2003 are rejected reserving liberty to the State Government to move the central Government for appointment of a suitable person as an assistant or Deputy Liquidator. The Official Liquidator is directed to take control of the affairs of the Company. ( 18 ) IT was the duty of the persons who were in charge of the affairs of the Company when the order of winding up was passed by this Court on 5-11-2000 to file such reports and to place such factual material in terms of the provisions of Section 454. As it is claimed that the Company was under the ownership of the State Government itself, it was the duty of the State Government/its Officers to have complied with such requirements. The Official Liquidator had never been allowed to take possession or control of the Company which was ordered to be wound up. The State Government alone will be responsible for all such acts hitherto till the persons who are presently in charge of the affairs of the company whether described as the Managing Director or in any other capacity, hands over the assets and other properties and other belongings of the Company to the Official Liquidator. ( 19 ) THE State Government is directed to deposit a sum of Rs. 25,000/- with the Official Liquidator towards the initial expenses during the winding up proceedings. The persons in charge of the affairs of the company hitherto also to file the statement of affairs as on today and to hand over all books of accounts and other records to the Official liquidator. --- *** --- .