PARAMVIR SINGH vs PRESIDIUM BREWERIES PVT LTD

* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment reserved on : 16 November 2023
Judgment pronounced on: 23 November 2023
+ CO.PET. 306/2012
PARAMVIR SINGH ….. Petitioner
Through: Appearance not given.
Versus
PRESIDIUM BREWERIES PVT LTD. …. Respondent
Through: Ms. Isha Khanna, Standing
Counsel for OL.
CORAM:
HON’BLE MR. JUSTICE DHARMESH SHARMA
J U D G M E N T
CO. APPL. 836/2023 (UNDER SECTION 481 OF THE
COMPANIES ACT, 1956)

1. This is an application filed by the Official Liquidator under
Section 481 of the Companies Act, 19561 read with Rule 9 of the
Companies (Court) Rules, 19592, praying that the respondent
company (in liquidation) be dissolved and the Official Liquidator be
discharged as its Liquidator.
2. Vide order dated 15.05.2013 the company was ordered to be
wound up provisionally and Official Liquidator attached to this court
was appointed as the Provisional Liquidator of the company.

1 The Act
2 Rules

3. It was also brought to the notice of the Court that the Ex-
Director of the company (in liquidation) Mr. Ravi Kumar had earlier
moved CM No. 16065/2013 in Co. Appeal No. 73/2013, seeking a
stay of the winding up order dated 15.05.2013 passed by the Hon’ble
Company Judge, which was granted by a Division Bench of this
Court, vide order dated 09.10.2013. By a subsequent order of the
Division Bench dated 22.04.2014 the company (in liquidation) was
directed to deposit a sum of Rs. 9,00,000/- within a period of 30 days.
However, as the respondent company failed to comply with this order,
the company petition for winding up was admitted once again in
compliance with the directions of the Division Bench order dated
22.04.2014, and the same has been noted in order dated 27.05.2014 of
this petition.
4. It is stated that as per the record of the Registrar of Companies,
Delhi and Haryana, the following persons were found to be the Ex-
Directors of the company (in liquidation):
(i) Mr. Ravi Kumar,
(ii) Mr. Jitendra Kukreja,

5. The registered office of the company (in liquidation) was
situated at J-84, Kalkaji Extension, New Delhi. It has been submitted
that the possession of the said premises could not be taken as on visit
by the officials of the Official Liquidator”s office, it was found that the
same was a residential premise.
6. It is stated in the application that a team of officials visited
village Behra, Dera Bassi, SAS Nagar, where the seized stock of the
company was stored. The officials met with the DGM Mr.

Lokendraveer Sharma of Alcobrew Distillers, India Private Limited,
who identified the stock of the respondent company as per the register
of stocks maintained there. Subsequent to verification of the record,
the stock of the company (in liquidation) was given on superdari to
the DGM till further orders.
7. It has also been stated in the application that, as per the report of
the Food Analyst dated 29.06.2015, it was informed by the
Commissioner Excise and Taxation (Punjab) that the samples of
liquor contained suspended matter and were unsafe for consumption,
and therefore, the stock of the company could not be sold for making
recoveries. Furthermore, although efforts were made to determine
whether the seized liquor could be used for industrial or other
purposes, in accordance with Rule 53 of the Punjab Excise Bonded
Warehouse Rules, 1957, however, its suitability for the same could
not be ascertained. Since it was concluded that the entire stock of the
liquor has to be discarded certain directions were passed vide order
dated 31.05.2023. In compliance of the same, the stock was discarded
and the empty bottles were sold for a sum of Rs. 11,952/-. Further, as
per directions of the order Rs. 39,600/- was also released in favour of
Mr. N.R. Sharma (Chemical Engineer) from the Common Pool Funds
[“CPL”].
8. It is submitted by the learned counsel for the Official Liquidator
that thereafter, vide order dated 29.04.2022 in CO. APPL. 275/2022
the Official Liquidator was permitted to invite claims from the
creditors of the company. In compliance of the same, claims were
invited from the workmen and secured creditors of the company (in

liquidation) on 18.06.2022. Citations were published in the
newspapers, namely „Veer Arjun” and „Indian Express” and last date
for submission of claims with the Official Liquidator was 08.07.2022.
Only one claim was received from the petitioner herein, Mr. Paramvir
Singh on 01.07.2022. However, as there were no funds in the
company, the claim could not be settled.
9. Presently, it has been submitted that the funds position of the
company is Rs. 35,270/- as on 17.08.2023. Further, the Official
Liquidator is not seized of any assets either movable or immovable,
from which any money may be recovered, and there are no more
assets to be realised from the company (in liquidation). Therefore, no
useful purpose would be served by keeping this matter pending.
10. At this stage, it would also be relevant to reproduce Section 481
of the Act, which provides for dissolution of a company under such
circumstances as are prevailing in the present matter, and the relevant
portion of the same reads as under:

“Section 481. Dissolution of company.
(1) When the affairs of a company have been completely
wound up or when the Court is of the opinion that the liquidator
cannot proceed with the winding up of a company for want of
funds and assets or for any of the reason whatsoever and it is just
and reasonable in the circumstances of the case that an order of
dissolution of the company should be made, the Court shall make
an order that the company be dissolved from the date of the order,
and the company shall be dissolved accordingly.”
……..
…..

11. In the case of Meghal Homes (P) Ltd. v. Shree Niwas Girni
K.K. Samiti & Ors.3 the Supreme Court inter alia held as under:-

3 (2007) 7 SCC 753

“When the affairs of the Company have been completely wound up
or the court finds that the Official Liquidator cannot proceed with
the winding up of the Company for want of funds or for any other
reason, the court can make an order dissolving the Company from
the date of that order. This puts an end to the winding up process.”

12. In view of the above-mentioned decision of the Supreme Court
in Meghal Homes (supra), as well as keeping in mind the import of
Section 481 (1) of the Act and the facts and circumstances of the
present case, these liquidation proceedings warrant to be brought to an
end. As by way of present application, the Official Liquidator has
sought to be exempt from carrying out the publication of the citation
of the final winding up, the same is allowed and such exemption from
publication is granted. Further, the Official Liquidator is permitted to
close the books of accounts of the company after adjusting expenses
and losses from the CPL.

CO. PET. 306/2012

13. The respondent company M/s. Presidium Breweries Limited is
thereby dissolved and the Official Liquidator is discharged.
14. The Official Liquidator is permitted to close the books of
accounts of the company.
15. A copy of this Judgment be communicated to the Registrar of
Companies within 30 days by the Official Liquidator

DHARMESH SHARMA, J.
NOVEMBER 23, 2023
Sadique