- 1 - IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION. ORIGINAL CIVIL JURISDICTION. ORIGINAL CIVIL JURISDICTION. jmi COURT RECEIVER’S REPORT NO.277 OF 2008 IN SUIT NO.2435 OF 2005. Indu Parmanand Patel. ..Plaintiffs. vs. Sudha Chowgule & Ors. ..Defendants. .... Mr.J.P.Sen, a/w. Mr. Farhan Dubash, i/b. Federal & Rashmikant, for Plaintiffs. Mr.Madan, i/b. Bachubhai Munim & Co., for Defendant No.2. .... CORAM CORAM CORAM: S.J.KATHAWALLA, J. S.J.KATHAWALLA, J. S.J.KATHAWALLA, J. DATE DATE DATE : 17TH APRIL, 2009 : 17TH APRIL, 2009 : 17TH APRIL, 2009. P.C.: P.C.: P.C.: . Pursuant to the judgment and order dated 6th March 2009 passed by the Hon’ble Supreme Court of India in Special Leave Petition Nos.17162 of 2006 and 17396 of 2006, the following further orders and directions are passed :- (1) By an order dated 6th April 2009, Mr. J. Solomon, a practicing Solicitor of this Court has been appointed Administrator/Receiver of the assets of the defendant no.4 Company, viz.Tulsidas V. Patel Pvt.Ltd. ("the Company") in place of the Court Receiver, High Court, Bombay, appointed by order dated 7th September 2006. The formal possession of the assets, presently with the Court - 2 - Receiver, High Court, Bombay, and mentioned/included in the inventory dated 20th April 2007 prepared by M/s.N.B. Shah & Associates, Chartered Accountants appointed by the Court Receiver dated 20th April 2007 shall continue to be in possession of the Administrator/Receiver. The Administrator / Receiver shall also take formal possession of any other assets of the Company. (2) The Administrator/Receiver shall be empowered to issue cheques, pass receipts, receive monies, give discharge, oversee litigations, appoint/retain advocates, institute suits, legal proceedings, prosecute parties, defend proceedings, sign vakalatnama(s), authorizations, affidavits, written statements, etc. and protect the properties, evict illegal occupants, make composition and do everything which is required to be done in administering and managing the assets. (3) For the aforesaid purpose, the Administrator/Receiver shall operate, direct deposit of all monies received/receivable by the Company including monies received from its assets and disburse there from or salaries, outgoings - 3 - including property taxes, maintenance, security and other payments and liabilities as he may deem fit into/from bank account no.30047 with Union Bank of India, Peddar Road Branch of the Company. The Administrator/Receiver may himself operate the aforesaid bank account. (4) The Administrator shall, at the cost of the Company, have power and authority to enter into leave and license or other arrangements in regard to the Company’s flats (without transferring or creating third party interest therein) on such terms, conditions and agreements as he may determine including dealing with licensee, arrangements with parties presently using the said flats. However, the licence fee fixed by the Administrator/Receiver will be approved by Mr.Elavia, Partner of Kalyaniwala & Mistry, Chartered Accountants. (5) The parties shall bring to the attention of the Administrator/Receiver in writing all legal proceedings, notices and other developments from time to time to enable the Administrator/Receiver to take appropriate steps to protect the interest of the Company, its assets and properties and - 4 - shall render all help required by the Administrator/Receiver for the purpose. (6) It shall be open to the Administrator/Receiver to take all legal and professional help which he may deem necessary at the cost of the Company including appointing Chartered Accountants/Company Secretary’s/Consultants/Professionals/Security Agency, etc. (7) The Company shall pay to the Administrator/Receiver remuneration quantified at Rs.1,00,000/- per month, which shall have first priority for payment. (8) The Company will bear all the medical and travel expenses of plaintiff no.1 (Indu Patel) as and when required in terms of clause 41(6) of the order dated 7th September 2006 passed by the Division Bench of this High Court. (9) After meeting/providing for all the expenses and outgoings in the ordinary course of business of the Company/its subsidiaries, taking into account expenses/payments which are reasonably likely to arise or accrue to the company, the - 5 - Administrator/Receiver shall distribute the surplus income on a half yearly basis as per clause 41(7) of the order dated 7th September 2006 passed by the Division Bench of this Court. (10) By the order dated 6th April 2009, the Court Receiver appointed by the order dated 7th September 2006 was discharged. It is clarified that such discharge is without passing accounts. The amount of Rs.50,000/- required to be paid from the account of the Company vide clause 41(12) of the order dated 7th September 2006 was paid by defendant no.1 vide Demand Draft No.118832 dated 28th September 2006. The Administrator/Receiver shall refund to defendant no.1, the said amount paid, in view of the discharge of the Court Receiver, High Court, Bombay, without passing accounts. (11) All the properties and assets of the Company will continue to remain in the name of the Company and all agreements concerning them will continue to be entered into only in the name of the Company. (12) All statutory authorities including the - 6 - Police, the Brihan Mumbai Municipal Corporation and Court Receiver, High Court, Bombay are directed to assist and co-operate with the Administrator/Receiver to protect and preserve the assets of the Company. (13) It is expressly clarified that the Administrator/Receiver performing his functions in accordance with the orders of the Court shall not be personally liable for breaches or violation of statutes by the Company or its Officers or Directors, whether under the Negotiable Instruments Act, or the Employees State Insurance Act or Provident Fund Act, or other statutes with the end and intent that the Administrator/Receiver appointed by the orders of the Court is not a representative or officer representing the defendant no.4 Company as an Officer or Director or otherwise. (14) The boards put up by the court Receiver, High Court, Bombay shall be replaced by the boards of the Administrator/Receiver appointed by an order of this Court dated 6th April 2009. - 7 - [S.J.KATHAWALLA, [S.J.KATHAWALLA, [S.J.KATHAWALLA, J.] J.] J.]