1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION APPEAL NO.289 OF 2009 IN COMPANY APPLICATION NO.743 OF 1983 IN COMPANY PETITION NO.525 OF 1977 Kamal Mahavirprasad Morarka ...Appellant v/s Official Liquidator of M/s Eldee Wire Ropes Co.Ltd. (in liqn.) and ors....Respondents Mr H.G. Thakkar, Sr. Counsel i/b M/s Mahesh Jani and Co. for Appellant. Mr S.A. Bhagwat for Official Liquidator. CORAM : D.K. DESHMUKH AND R.G. KETKAR JJ. DATE : 12TH AUGUST 2009. 2 P.C. :- 1] Admit. At the request of the learned counsel appearing for appellant, the names of respondent Nos.2 and 3 are permitted to be deleted. By consent of appellant and respondent No.1, appeal is heard finally. 2] By this appeal, the appellant challenges the order dated 11th June 2009 passed by the learned Single Judge in company application No.743 of 1983. By that order, relying on the report submitted by the Official Liquidator dated 9th June 2009, the learned Single Judge directed the Official Liquidator to take appropriate steps as may be required in law to proceed against the respondents in relation to the misfeasance proceedings. The report dated 9th June 2009 was submitted because of an order made by the learned Single Judge dated 13th September 1994. The order reads as under :- 3 The Official Liquidator is directed to review the application in order to satisfy himself as to whether the cause of action survives or not. Matter is adjourned for four weeks. Pursuant to this order dated 13th September 1994, the Official Liquidator submitted his report , which is dated 6th June 2009. So far as the aspect of the survival of the cause of action or otherwise is concerned, there is only one statement made in the report which reads as under :- In view of above, the Official Liquidator feels that prima facie case is made out against the respondents and cause of action survived as on that date. There are no reasons to be found in the report indicating as to how the Official Liquidator came to the conclusion that the cause of action 4 survives. There is no reference made to the documents on the basis of which that opinion is reached. The learned Single Judge has also not referred to any material otherwise than the report of the Official Liquidator. In our opinion, the procedure that is followed by the Official Liquidator and the learned Single Judge cannot be said to be proper. When the Court calls for report from the Official Liquidator asking him to submit his opinion, the Official Liquidator s report must indicate the reason why he has reached the conclusion as also must indicate the documents and material on the basis of which he has formed his opinion. In these circumstances, therefore, following order would meet the ends of justice. 3] The appeal is allowed, the order dated 11th June 2009 passed in company application No.743 of 1983 is set aside. The Official Liquidator is directed to submit a fresh report pursuant to the order dated 13th September 1994 and in the light of the observations made above. The Official 5 Liquidator shall submit his report before the Company Judge who shall pass the order in accordance with law. Appeal is disposed off. Notice of motion No.2626 of 2009 is disposed off. Parties to act on the copy of this order duly authenticated by the Associate / Private Secretary of this Court. Certified copy expedited. ( JUSTICE D.K. DESHMUKH ) ( JUSTICE R.G. KETKAR )