urgent information

Official Assignee

Liquidator

• Appointment:

Under the provisions of THE PRESIDENCY-TOWNS INSOLVENCY ACT, 1909, ( PART IV Section 77 )

• Purpose:

For the purpose of Insolvency and bankruptcy proceedings;

• Duties:

(i)           to investigate the conduct of the insolvent   and to report to the Court upon any application for discharge, stating whether there is reason to believe that the insolvent has committed any act which constitutes an offence in connection with his insolvency;

(ii)          to make such other reports concerning the conduct of the insolvent as the Court may direct or as may be prescribed; and

(iii)         to take such part and give such assistance in relation to the prosecution of any fraudulent insolvent as the
Court may direct or as may be prescribed.

(iv)       The official assignee shall, whenever required by any creditor so to do and on payment by the creditor of the prescribed fee, furnish and send to the creditor by post a list of the creditors showing in the list the amount of the debt due to each of the creditors.

§      Remuneration:

Such remuneration shall be paid to the official assignee as may be prescribed.

• Discretionary powers and control :

(i)           the official assignee shall, in the administration of the property of the insolvent and in the distribution thereof amongst his creditors, have regard to any resolution that may be passed by the creditors at a meeting;

(ii)          The official assignee may, from time to time, summon meetings of the creditors for the purpose of ascertaining their wishes;

(iii)         The official assignee may apply to the Court for directions in relation to any particular matter arising under the insolvency

• Appointment

Under the provisions of Companies Act, 1956, (Section 448)

• Purpose :

For the purpose of conducting liquidation proceedings of those companies which are ordered to be wound up by the High Court;

When a company is put to winding up by an order of the High Court, the Official Liquidator attached to the said High Court takes possession of the company’s assets, books of accounts, etc. and liquidates the company as per the further orders of the High Court;

• Duties

(i)               Functionally the Official Liquidator is under  the supervision and control of the High Court but administratively is under the control of the Central Government through the Regional Director.

(ii)              The Primary function of the Official liquidator is to administrate the assets of companies under liquidation, sale of the assets and realization of all debts of companies in liquidation for the purpose of distributing the same among the various creditors and other shareholders of the companies;

(iii)             finally dissolve such companies after the affairs are completely concluded

POWERS OF LIQUIDATOR IN WINDING UP:

1.      In compulsory winding up of a company:

(a) As per section 457(1) of The Companies Act 1956, the liquidator has the following powers with the sanction of court:

·                    to institute and defend any suit, prosecution or other legal proceeding, civil or criminal, in the name and on behalf of the company;

·                   to carry on the business of the company;

·                    to sell the immovable and movable property and actionable claims of the company by public auction or private contract;

·                    to raise on the security of assets of the company any money requisite;

·                   to do all such acts necessary for winding up the affairs of the company and distributing its assets.

 (b) As per section 457(2) of The Companies act 1956, the liquidator has the following powers without obtaining the sanction of court:

·                    to do all acts and to execute all deeds, receipts and documents in the name and on behalf of company and to use common seal of the company for that purpose;

·                   to inspect the records and returns of company;

·                    to prove, rank and claim in the insolvency of any company;

·                    to draw, accept, make and endorse any negotiable instruments in the name and on behalf of the company;

·                    to appoint an agent to do any business which the liquidator is unable to do himself.

2.      In winding up subject to the supervision of court.

·                    to pay any classes of creditors in full;

·                    to make any compromise or arrangement with the creditors to have any claim ascertained;

·                    to compromise any call, debt or liability.

 3.  In voluntary winding up of company

·                    to institute and defend any suit, prosecution or other legal proceeding, civil or criminal, in the name and on behalf of the company;

·                    to carry on the business of the company;

·                    to sell the immovable and movable property and actionable claims of the company by public auction or private contract;

·                    to raise on the security of assets of the company any money requisite.

4. The following powers can be exercised by him without any sanction:

·                    to do all acts and to execute all deeds ,receipts and documents in the name and on behalf of company and to use common seal of the company for that purpose;

·                    to inspect the records and returns of company;

·                    to prove, rank and claim in the insolvency of any company;

·                    to draw, accept, make and endorse any negotiable instruments in the name and on behalf of the company;

·                    to appoint an agent to do any business which the liquidator is unable to do himself;

·                    to exercise the power of court of settling the list of contributories;

·                    to exercise the power of court of making calls;

·                   to pay debts of company and adjust the rights of contributories among themselves.