Official Liquidator permitted to utilise funds from Common Pool Fund Account in case of shortage: HC
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- Last Updated on 28 December, 2022
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Case Details: Official Liquidator of Apex Electricals Ltd. (In Liqn.) v. NA - [2022] 145 taxmann.com 531 (Gujarat)
Judiciary and Counsel Details
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- Bhargav D. Karia, J
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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.
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