THE HON’BLE SRI JUSTICE V.V.S.RAO COMPANY APPLICATION No.1948 of 2009 IN COMPANY PETITION No.112 of 2001 ORDER: This application is filed seeking necessary clarification as to whether the Official Liquidator is required to handover possession of the Company (in liquidation) and books of accounts to the applicant herein. There is no dispute that by order dated 05.10.2009 made in Company Petition No.112 of 2001 this Court on remand from the Supreme Court sanctioned the scheme of arrangement/compromise with the creditors and shareholders as the group with 30% shareholding did not object to the scheme. It is the grievance of the applicant that after complying with necessary sanction procedures when he approached the Official Liquidator attached to this Court for taking over possession of the Company, Official Liquidator declined to do so as there was no specific direction in the order passed by this Court. Therefore, he filed the instant application for necessary orders. The Official Liquidator has filed report, being OLR No.437 of 2009, dated 31.12.2009, stating as under. It is further submitted that the Official Liquidator had incurred a sum of Rs.8,58,740/- towards liquidation expenses from the date of taking possession to till date. The said expenditure was incurred out of the Estate & Establishment Fund Account with the permission of this Hon’ble Court as the company had no funds and the secured creditors refused to meet the liquidation expenditure. The break up of the above said expenditure is as follows:- i) Watch & Ward Expenses Rs.7,94,200/- (from 25-11-2003 to 30-11-2009) ii) Liquidation expenses such as postal charges, audit fees, advocate fees, TA, DA, stationary etc. Rs. 42,940/- iii) Valuation fees Rs. 21,600/- ----------------- Rs.8,58,740/- ----------------- In view of the above, it is prayed that, if this Hon’ble Court grants the relief of the applicant, he may be directed to remit the expenses incurred by the Official Liquidator amounting to Rs.8,58,740/- immediately to recoup the same to the Estate & Establishment Account maintained by this office. This Court heard learned Counsel for the applicant Sri P.Vikram and the learned Counsel for the Official Liquidator Sri M.Anil Kumar. It is brought to the notice of this Court that no books of accounts or any books of the Company are available with the Official Liquidator. Therefore, the Official Liquidator is directed to handover the Company with all its assets to the applicant as and when the applicant approaches the Official Liquidator on condition of paying a sum of Rs.8,58,740/- (Rupees eight lakhs fifty eight thousand seven hundred and forty only) towards watch and ward charges and other amount which may be demanded by the Official Liquidator incurred towards liquidation expenses. Both the parties are given liberty to seek any clarification from this Court. The Company Application is disposed of accordingly. _______________ (V.V.S.RAO, J) 31.12.2009 Note: Issue C.C in one week. B/o. vs