IN THE HIGH COURT OF KARNATAKA AT BENGALURU BEFORE THE HON BLE MR. JUSTICE BUDIHAL R.B.
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1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4 TH DAY OF MARCH, 2016 BEFORE THE HON BLE MR. JUSTICE BUDIHAL R.B. Company Application No.1459/2015 In Company Petition No.137/2000 BETWEEN: MR. K.N.KRISHNA PRASAD S/O SRI K.NARASIMHIYENGAR AGED ABOUT 78 YEARS EX-CHAIRMAN AND MANAGING DIRECTOR OF M/S. SHWETADRI SPECIALITY PAPERS PVT LTD., FLAT NO.201, PRUTHVI APARTMENTS 900, FIRST MAIN ROAD LAKSHMIPURAM, MYSORE APPLICANT (BY SRI. RAYAPPA.Y.HADAGALI, ADVOCATE) AND: THE OFFICIAL LIQUIDATOR OF M/S SHWETADRI SPECIALITY PAPERS PVT.LTD.(IN LIQN.) ATTACHED TO THE HIGH COURT OF KARNATAKA CORPORATE BHAVAN, NO TH FLOOR, RAHEJA TOWER M.G.ROAD, BANGALORE RESPONDENT (BY SRI.K.S.MAHADEVAN, ADVOCATE FOR O/L)
2 2 THIS APPLICATION IS FILED UNDER RULE 9 OF THE COMPANIES (COURT) RULES, 1959, PRAYING TO PROSECUTE OMP NO.415/2006, BEFORE THE HIGH COURT OF DELHI, BY ENGAGING M/S.DUA ASSOCIATES, ADVOCATES, NEW DELHI, ON BEHALF OF THE OFFICIAL LIQUIDATOR, AT THE COST OF THE APPLICANT, AND ETC., THIS APPLICATION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Heard the learned Counsel appearing for the Applicant and also the learned Counsel appearing for the Official Liquidator. 2. This application is filed under Rule 9 of the Companies [Court] Rules, The brief facts leading to filing of this application are that M/s. Shwetadri Speciality Papers Pvt. Ltd., [in liquidation] was ordered to be wound up by an Order dated passed by this Court in Co.P. No.137/2000. The Official Liquidator attached to this Court has been appointed as Liquidator of the said
3 3 Company. The Official Liquidator has thereafter taken possession of the assets of the company. Prior to liquidation of the company in liquidation, the company had filed OMP No.415/2006 against National Research Development Corporation, New Delhi before the Delhi High Court challenging the Award passed by the Sole Arbitrator and represented by M/s. Dua Assocaites, Advocates. In view of the fact that the Company is under liquidation, proceedings in the said OMP No.415/2006 was suspended and could be revived only with the intervention of the Official Liquidator appointed by this Court in the above company petition. The Official Liquidator filed OLR No.259/2015 before this Court in the above company petition seeking permission to not to press the proceedings before the Delhi High Court on the footing that there are no funds of the company in liquidation available with the Official Liquidator to prosecute the proceedings before the Delhi High Court.
4 4 Accordingly, this Court accepted the said OLR No.259/2015 and permitted the Official Liquidator not to press the proceedings in OMP No.415/2006 before the Delhi High Court vide its order dated Pursuant to that, the Applicant has received the said order dated along with covering letter from the office of the Official Liquidator. The copy of the same is produced along with the application as per Annexure-A. It is further pleaded in the application that the Ex- Chairman and Managing Director/Promoter of the Company is ready and willing to continue to prosecute the proceedings in OMP No.415/2006 by engaging same Advocates M/s. Dua Associates, New Delhi, on behalf of the Official Liquidator at the cost of the Applicant. The Company has good case on merits in OMP No.415/2006 and if OMP No.415/2006 which is pending before the Delhi High Court is allowed on merits on contest, the proceeds of the same would be more than sufficient to
5 5 meet all the liabilities of the Company and to revive the same. Hence, it is sought by the Applicant to allow the application and to permit to prosecute the case at the cost of the applicant. 4. Looking into the averments made in the said application and also the verifying affidavit and in view of the submission made by the learned Counsel appearing for the Official Liquidator if the applicant is pursuing the said proceedings at his cost, he has no objections. Hence, the Applicant/Promoter is permitted to prosecute OMP No.415/2006 pending before the Delhi High Court by engaging M/s. Dua Associates, Advocates, New Delhi, on behalf of the Official Liquidator at the cost of the Applicant. 5. The Official Liquidator is also directed to issue no objection to represent the company under
6 6 liquidation by M/s. Dua Associates, Advocates, New Delhi, in OMP No.415/2006 before the Delhi High Court. 6. Accordingly, the application is disposed of. Sd/- JUDGE AN/-
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