Official Liquidator permitted to utilise funds from Common Pool Fund Account in case of shortage: HC
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 28 December, 2022
Latest from Taxmann
Case Details: Official Liquidator of Apex Electricals Ltd. (In Liqn.) v. NA - [2022] 145 taxmann.com 531 (Gujarat)
Judiciary and Counsel Details
-
- Bhargav D. Karia, J
-
Shivang Thacker for the Applicant.
Facts of the Case
In the Instant case, the Court directed the Official Liquidator to publish an advertisement of a petition to invite claims from secured creditors, workmen, unsecured creditors and other stakeholders of the company in liquidation. Consequently, the Official Liquidator received bills from the advertising agency GNA.
The Official Liquidator requested nine petitioners to deposit advertisement expenses. Out of nine petitioners, only two petitioners deposited an amount of Rs. 60,000. The Official Liquidator had only received the bills from the advertising agency M/s. Global Network Advertising which were placed on record of this application for the amount of Rs. 63,045/- and Rs. 1,33,434/- respectively.
High Court Held
With regard to this, the Official Liquidator (OL) prayed for payment of the advertisement bill of Rs. 1.96 lakhs of an advertising agency from the Common Pool Fund Account of various companies (in liquidation) as maintained by the office of OL subject to adjustment against the realization of amount from the sale of assets of companies (in liquidation).
Subsequently, since OL was having a fund of Rs. 1.20 lakhs to meet with advertising expenses of total advertisement expenses of Rs. 1.96 lakhs, OL was to be permitted to utilise the amount of Rs. 1.20 lakhs for payment to the advertising agency pursuant to the remaining amount to be paid from Common Pool Fund Account maintained by office of Official Liquidator. The Official Liquidator Report had been accordingly disposed of.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
