Sanjib Banerjee, J. - (1.) THE official liquidator seeks eviction of a lessee at a property of the company in liquidation in Hyderabad. A letter for directions to such effect has been filed. The lessee has filed affidavits and has attempted to resist the order sought.
(2.) PRUDENTIAL Capital Markets Ltd. (now in liquidation) was permitted by its memorandum to carry on investment business. In 1997 it applied under the Reserve Bank of India Act, 1934, for issuance of a certificate of registration as a non -banking financial company as defined by Section 45 -I(f) of the 1934 Act. On 29 September 1997, the Reserve Bank prohibited the company from accepting any deposit from any person whether by way of renewal or otherwise and the company was further directed not to sell, transfer, create any charge or mortgage or deal with its property or assets in any manner without the prior written permission of the Reserve Bank except for the purpose of repayment of the deposits held by the company on maturity. Such direction was issued in the context of the Reserve Bank having received complaints from depositors that the company was unable to repay the deposits accepted from the public. The Reserve Bank took the view that to allow the company to accept fresh deposits or to permit it to renew the existing deposits would be detrimental to the interests of the existing and prospective depositors. The Reserve Bank order requiring the company not to sell or otherwise deal with its properties, was in terms of Section 45 -MB(2) of the 1934 Act and it was for a period of six months from the date of the order. By another order of 14 May 1998, the Reserve Bank directed the company not to sell, transfer, create any charge or mortgage or deal with its property and assets in any manner except to repay deposits on maturity without the prior written permission of the Reserve Bank for a further period of six months. On 30 October 1998, the Reserve Bank rejected the company's application for grant of certificate of registration as a non -banking financial company. The Reserve Bank cited several reasons for such refusal. It noticed that a large number of complaints had been received from the company's depositors that the company was unable to repay the deposits following which the Reserve Bank had issued a prohibitory order which was subsequently renewed. The Reserve Bank found that the application for registration did not contain anything to show that the company was in a position to repay deposits upon maturity. The Reserve Bank was of the opinion that the company had failed to fulfil the conditions set down under Sub -section (4) of Section 45IAof the 1934 Act.
(3.) COMPANY Petition No. 217 of 2001 was filed by a creditor on 7 April 2001, for winding up the company. The company was directed to be wound up on such petition on 5 December 2001. The customary notification following the order of winding up was issued on 25 January 2002. On an application being CA No. 99 of 2002 for recalling or stay of the order of winding up, an order was made on 25 February 2002, directing the official liquidator not to take any further steps and requiring the company to deposit a sum of Rs. 40,000 with the official liquidator on account of the claim of the petitioning -creditor in CP No. 217 of 2001. Notices were also required to be issued to the secured creditors of the company. It is necessary that such order of 25 February 2002 be seen in its entirety: Upon deposit of Rs. 40,000 with the official liquidator on amount (account) of the claim of the petitioning creditor, the company shall be at liberty to serve the secured creditors and the matter shall appear in the list as 'specially fixed matter' one week hence. It is made clear that if the abovementioned sum is deposited by and on behalf of the company within the course of 1 this week, only then the company shall be at liberty to serve notice or else this 1 order shall stand recalled. In the meantime, the official liquidator shall not take any further steps in the matter. This order shall be valid till adjourned date.;