DIPANKAR DATTA, J. - (1.) UJJAIN Pipe and Foundry Co. Ltd. (hereafter 'the company in liquidation') having registered office in Kolkata, had its factory located in Ujjain, Madhya Pradesh. It became sick and was ultimately directed to be wound up by an order of the company court dated July 10, 1997.
(2.) THE official liquidator put up the assets of the company in liquidation for sale vide sale notice dated May 9, 2003, pursuant to an order of the company court dated April 4, 2003. The assets of the company in liquidation were to be sold on 'as is where is whatsoever there is basis'. By an order dated July 4, 2003, the company court was pleased to confirm the sale in favour of one Nagendra Jain at a sum of Rs. 20 crores. Subsequently, the offer was increased to Rs. 20.50 crores. After sale as referred to above, the official liquidator had invited claims from the creditors of the company in liquidation by publishing advertisements. In response thereto, Ujjain Nagar Palika Nigam (hereafter 'the Nigam') being a local authority governed by the provisions of the Madhya Pradesh Municipal Corporation Act, 1956, filed its affidavit of proof of debts for realisation of unpaid property tax amounting to Rs. 4,66,49,092 and unpaid water tax amounting to Rs. 11,14,612.
(3.) A meeting was convened for adjudication of the Nigam's claim. A sum of Rs. 2,79,955 was admitted by the official liquidator as preferential claim of the Nigam up to the period of winding up while the balance claim for a sum of Rs. 4,63,69,137 was rejected as the claim pertained to post liquidation period. So far as water tax is concerned, the official liquidator allowed a sum of Rs. 2,162 and rejected the balance claim of Rs. 11,14,612 towards water tax. The balance claims were withheld by the official liquidator without passing any reasoned order.;