OJA/72/2002 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD O.J.APPEAL No. 72 of 2002 In COMPANY APPLICATION No. 323 of 1999 For Approval and Signature: HONOURABLE MR. JUSTICE MOHIT S. SHAH Sd/- HONOURABLE MR.JUSTICE K.A.PUJ Sd/- ========================================= 1. Whether Reporters of Local Papers may be allowed to see the judgment ? YES 2. To be referred to the Reporter or not ? NO 3. Whether their Lordships wish to see the fair copy of the judgment ? NO 4. Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? NO 5. Whether it is to be circulated to the civil judge ? NO ========================================= NAVINCHANDRA JIVANLAL PATEL - Appellant Versus O.L. OF ARUN MILLS CO. LTD. & 8 - Opponents ========================================= Appearance : MR KN PATEL for Appellant(s) : 1, MR RM DESAI for Opponent(s) : 1, 6, NOTICE SERVED for Opponent(s) : 2 - 5,7 - 8. SINGHI & CO for Opponent(s) : 9,9.2.1 ========================================= CORAM : HONOURABLE MR. JUSTICE MOHIT S. SHAH and HONOURABLE MR.JUSTICE K.A.PUJ OJA/72/2002 2/3 JUDGMENT Date : 23/10/2008 CAV JUDGMENT (Per : HONOURABLE MR.JUSTICE K.A.PUJ) 1. Aruna Mills Limited was ordered to be wound up by order dated 05.07.1993 of the Company Court. The buildings and machineries of the Company in winding up were sold. When it came to sale of the leasehold rights of the Company in liquidation over the land acquired under the Rent deed dated 22.12.1927, the parties claiming to be lessors challenged the right and power of the Official Liquidator to sell the leasehold rights of the Company in winding up and have contended that upon winding up order having been passed, the lessors were entitled to get back possession of lands. 2. By judgment dated 30.07.2002 passed in Company Application No.323 of 1999, the learned Company Judge rejected the above claim and held that the lease was a long term lease and the leasehold rights over the land of the Company in winding up is the assets of the Company which was put up for sale by the Official Liquidator. Aggrieved with the above judgment, the original applicants – lessors filed the present appeal. However, during pendency of the appeal, there was no stay operating against the sale of the leasehold rights of the Company in winding up. The land was put up for sale by the Official Liquidator through the Sale Committee consisting of the Official Liquidator, representatives of the Secured Creditors and the Textile Labour Association, a representative union of the workers. By order dated 28.06.2005 of the Company Court, the sale was confirmed in favour of the highest bidder for a sum of Rs.13.50 Crores. The amount of sale consideration was realized and disbursed to the workers and secured creditors as per the statutory OJA/72/2002 3/3 JUDGMENT ratio. 3. The contentions raised on behalf of the lessors therein were also raised in OJ Appeal Nos. 65 to 67 of 2006. By our judgment dated 17.10.2008, we have rejected the contentions and dismissed the appeals of the lessors. 4. Following the aforesaid decision, the present appeal also deserves to be dismissed subject to the clarification that the Secured Creditors will provide necessary finance for payment of rent by the Official Liquidator to the lessors of the property in question, in case, the Official Liquidator is not having the adequate funds for payment of such rent to the lessors. Accordingly, the appeal is dismissed. Interim relief, if any, stands vacated. Sd/- [M. S. SHAH, J.] Sd/- [K. A. PUJ, J.] Savariya