Companies (Court) Rules, 1959

NGEF Ltd., a joint‑venture sick industrial company, was referred to the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). BIFR recommended winding up and observed that any sale of the company's assets should be sought from the High Court.…

The Supreme Court examined the claim of Company Paid Staff employed in the offices of the Official Liquidator and Court Liquidator across several High Courts, who had served for 10‑25 years on low pay without permanent status or retirement benefits. They filed writ petitions seeking to be regularised as Central Governm…

Forech India Ltd. filed a winding‑up petition in the Delhi High Court in 2014 against a company, serving notice under Rule 26 of the Companies (Court) Rules. Later, a financial creditor (Respondent No.1) filed an insolvency petition under Section 7 of the Insolvency & Bankruptcy Code (IBC) before the NCLT, which was ad…

Allahabad Bank and other banks appealed against the Calcutta High Court's confirmation of a sale of Bengal Paper Mills' assets by the Official Liquidator. The sale, valued at Rs. 1.5 crore and later raised to Rs. 2 crore, was conducted with limited newspaper advertisements, without disclosing the valuation report, and …

M/s Kaledonia Jute and Fibres Pvt. Ltd. (appellant) sought to recover a debt from M/s Axis Nirman and Industries Ltd. (first respondent) and filed a petition under Section 7 of the IBC before the NCLT. Simultaneously, a winding‑up petition against the first respondent was pending before the Allahabad High Court, which …

The United Industrial Bank sued the Cotton Corporation of India seeking a declaration that the bank’s branch manager lacked authority to co‑accept usance bills and also obtained an interim injunction restraining the corporation from filing a winding‑up petition against the bank. The Bombay High Court’s Division Bench u…

The Supreme Court examined two Special Leave Petitions filed by IDBI Bank Ltd. challenging a High Court order that dismissed its application to execute a sale deed of KOFL's sole immovable property and revived winding‑up proceedings against KOFL. The Court held that the winding‑up petition must be revived because the m…

The Supreme Court examined whether an Official Liquidator, appointed to wind up Premier Cable Company Ltd., qualifies as a "dealer" under the Kerala General Sales Tax Act, 1963 and consequently bears sales tax liability on the auction sale of the company's assets. The Court held that the liquidator, by stepping into th…

The appellant, a landlord, sought to evict a tenant occupying a flat owned by his father under a licence agreement with a company that later went into winding up. While the eviction suit was pending, the appellant applied under section 446 of the Companies Act, 1956 for the court's permission to continue the suit again…

Mis Associated Journals Ltd filed a winding‑up petition against Mysore Paper Mills Ltd, but the petition’s verification affidavit did not conform to Rule 21 of the Companies (Court) Rules, 1959. The Company Judge allowed the respondent to file a fresh affidavit to cure the defect, and the High Court upheld that order. …

The Calcutta High Court ordered the winding up of Tirupati Woollen Mills Ltd and directed the official liquidator to sell its assets as a going concern. The initial reserve price was Rs.37 lakh, which was later raised to Rs.85 lakh and then to Rs.1.30 crore, with Divya Manufacturing Co. (P) Ltd being declared the highe…

The case arose when a group of shareholders filed a winding‑up petition against Ramakrishna Industries Ltd. and obtained an interim injunction that threatened the payment of wages and supplies to the company's employees. Three trade unions representing the workers applied to be impleaded as respondents, arguing that th…

Suzuki Parasrampuria Suitings Pvt. Ltd. (the appellant) was assigned the debt of Mahendra Petrochemicals Ltd. (MPL) by IFCI for a nominal sum and sought substitution as a secured creditor under the SARFAESI Act. The Company Judge rejected the application, holding that the appellant was not a bank, financial institution…

Indian Bank advanced money to Chemmeens Exports Pvt. Ltd. secured by an equitable mortgage and, after the company was wound up, obtained leave to sue the company in liquidation. A preliminary decree was passed ordering the company to pay the debt by a specified date, failing which the bank could obtain a sale order. Th…

The Supreme Court considered applications filed by the purchaser of Bengal Paper Mills' assets seeking clarification of its earlier judgment that ordered a refund of the Rs.2 crore purchase price but denied interest. The Court examined whether interest could be awarded under Order XXI Rule 93 of the CPC and whether res…

The appellant, a guarantor and director of a liquidated company, challenged the Punjab National Bank's attempt to recover a debt by filing execution petitions. The High Court transferred the third execution petition, filed in 1999, to the Debt Recovery Tribunal (DRT) invoking inherent powers. The Supreme Court held tha…

Three shareholders of Jeypore Sugar Co. Ltd., including a daughter residing in the USA, filed a petition under sections 397/398 of the Companies Act, 1956. The daughter had executed a General Power of Attorney (GPA) in favour of her father, who gave written consent on her behalf as required by section 399(3). The respo…

The appellants, Chembra Orchard Produce Ltd. and others, filed applications under Section 391(1) of the Companies Act, 1956 seeking a court order to convene meetings of creditors and members for a proposed amalgamation scheme. The Karnataka High Court held that such applications must be heard with the parties present b…

The case concerned employees engaged by Official Liquidators under Rule 308 of the Companies (Court) Rules, 1959 who were paid from the liquidated company's fund ("company paid staff"). They sought regularisation, absorption into the regular cadre of the Department of Company Affairs and parity in pay with Central Gove…

The Official Liquidator (OL) of IISCO Ujjain Pipe and Foundry Co. Ltd., wound up under the Companies Act, sold the company's assets on an "as is where is whatever there is" basis. Ujjain Nagar Palika Nigam (respondent No.1) claimed arrears of property tax and water tax for the period from the winding‑up order (10 July …

The Punjab State Industrial Development Corporation Ltd (PSIDC) promoted Punjab National Fertiliser & Chemical Ltd (PNFC), which was wound up under the Sick Industrial Companies (Special Provisions) Act, 1985. PNFC failed to pay wages to its workers, who approached the Punjab Chief Minister, who issued a note requestin…

The appellant, M.V. Janardhan Reddy, purchased a property of a company in liquidation at a public auction. The sale was to be confirmed by the Company Court, but the Recovery Officer of the Debt Recovery Tribunal confirmed it without court approval. The Company Court later set aside the sale, a decision upheld by the H…