HC Allows Liquidator’s Plea to Dissolve Co. As There Were No Recoverable Assets for Remittance of Dues

Case Details: Kotak Mahindra Bank Ltd. v. Manisha Parivahan (P.) Ltd. - [2024] 158 taxmann.com 483 (Delhi)

Judiciary and Counsel Details

• • Dharmesh Sharma, J.
  • Ms Isha Khanna, Ankit Shah, Kumar Aditya, Isha Khanna & Nikhil, Advs. for the Appellant.
  • Ankit Shah & Aditya Kumar for the Respondent.

Facts of the Case

In the instant case, the High Court issued an order mandating the winding-up of the respondent company and appointed an Official Liquidator (OL). This decision was based on the grounds that the company was unable to settle its debts, which amounted to Rs. 28 lakhs. During winding up proceedings, the bank informed that there were no funds available for remittance in the account of the respondent.

The Official Liquidator filed an instant application praying to dissolve the respondent and to discharge the Official Liquidator as its liquidator as it had no knowledge of any other recoverable asset of the respondent was available and opined that no useful purpose would be served by keeping instant matter pending.

High Court Held

The High Court noted that there were no movable or immovable assets of the respondent from which any money might be recovered, and there were no more assets to be realized from the respondent.

Further, the High Court held that the instant application was to be allowed and the respondent company was to be dissolved.