C.A. No. 1607 of 2007. Case: Nasayam Mohammed Feroz, S/o Mohd. Farook and two Ors. Vs Vijetha Agro Farms (India) Limited. Andhra Pradesh High Court

Case Number:C.A. No. 1607 of 2007
Party Name:Nasayam Mohammed Feroz, S/o Mohd. Farook and two Ors. Vs Vijetha Agro Farms (India) Limited
Counsel:For the Appellant: A. Sanjeev Kumar, Adv. And For the Respondents: M. Anil Kumar, Adv.
Judges:Nooty Ramamohana Rao, J.
Issue:Companies Act - Sections 48, 51 and 291; Legal Services Authority Act, 1987 - Sections 20(1), 20(4), 21(1), 22 and 25
Judgement Date:June 30, 2009
Court:Andhra Pradesh High Court
 
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Order:

Nooty Ramamohana Rao, J.

  1. This is an application taken out by 3 individuals Viz: Sri Nasayam Mohammed Feroz, S/o Mohd. Farook, Sri Pasapoina Nageswara Rao, S/o China Venkata Swamy and Sri Arimandla Veera Reddy, S/o Rami Reddy, seeking directions for releasing the property bearing D. No. 12-25-12, Ganeshwar Rao Street (Sivalyam Street), Kothapet, Guntur from the custody/possession of the Official Liquidator attached to this Court.

  2. M/s. Vijetha Agro Farms India Limited is a company incorporated under the provisions of the Indian Companies Act having its registered office at Vijetha Complex, Sivalayam street, Kothapet, Guntur. One of the principal objectives for which the company came to be established was to develop agro farms and agro based industries and products. It has mobilized funds by way of collection of deposits for the purpose of developing agro farms at various places. The company also acquired an open plot admeasuring 813 sq. yards through four different sale deeds bearing Nos. 7848/1996, 7967/1996, 7546/1996 and 7561/1996 for valuable consideration. On the said open plot of land, a multi-storied building has been constructed where the registered office of the company is located. It bears Municipal Door No. 12-25-12, Sivalyam Street, at Kothapet locality of Guntur city.

  3. According to the applicants, since the company has become nearly insolvent and with a view to tide over its financial distress, through one of its Directors viz., Sri D.R.K.Singh, sold the property comprising of 813 sq. yards of site together with the building standing thereon for a total consideration of Rs. 50 lakhs. According to the applicants, they paid a sum of Rs. 49,75,000/- towards advance and part payment of sale consideration and the balance amount of Rs. 25,000/- was agreed to be received at the time of registration. It is their case that inspite of repeatedly informing the said Director and the company about the readiness and willingness of the applicants to pay up the balance amount of Rs. 25,000/-, the receipt of the said balance amount of Rs. 25,000/- and the consequential execution of the sale deed are delayed on one pretext or the other. Vexed by the indifference exhibited by the company and its Director Sri D.R.K.Singh, the applicants appeared to have filed a civil suit OS No. 20 of 2005 on the file of the III Addl. District Judge at Guntur seeking specific performance of the agreement of sale. Immediately, a compromise memo has been filed before the court and consequently the matter has been referred to the Lok Adalat which passed a decree on 28.6.2005 duly recording the compromise between the parties. In terms of the compromise decree, the balance amount of Rs. 25,000/- has been accepted and a regular sale deed has been executed on 14.7.2005. However, the Sub-Registrar, Guntur before whom the said sale deed has been presented for registration has kept the document pending for want of payment of the deficit stamp duty, as according to the Sub-Registrar, the market value of the property is far in excess of the sale consideration amount shown in the deed and hence the stamp duty and registration fee has to be computed and paid on the basis of the market value.

  4. It is further alleged that for purchasing the property, the applicants have availed loans from different persons and since the interest payable thereon is mounting, they have considered it appropriate to alienate the said property and accordingly entered into an agreement of sale on 2nd July 2007 with one Rev. KVK Rao, R/o Vanasthalipuram, Hyderabad, who paid 60% of the sale consideration amount. It is alleged that the possession of the property has not been handed over as the sale deed has been kept pending by the Sub-Registrar. In the meantime, they have come to know that CA No. 128 of 2005 came to be filed before this Court by some of the depositors of the company to whom the company has committed default in repaying their deposit amount seeking winding up of the company. It appears that the said company petition has been moved on 14.12.2005 and ultimately the winding up order came to be made by this Court on 4.12.2006. Pursuant to the order of winding up, the Official Liquidator attached to this Court has been appointed as liquidator of the company and in the process of taking over the possession of various assets of the company under liquidation, the Official Liquidator taken possession of the asset where the registered office of the company is located on 4.4.2007. It was also further pointed out that the criminal complaints lodged against the company are not being investigated properly and correctly and hence WP No. 3445 of 2004 has been instituted by some of the depositors in this Court and the said writ petition came to be disposed of on 28.12.2004 directing the Crime Investigation Department of Police (CID Police) to act upon the complaints lodged by the depositors of the company and take appropriate action in the matter. However, by the time the State Police could finalise the entire action, the property in question has already been sold to the applicants herein. Hence, they moved the present application seeking the property to be released from the custody of the Official Liquidator, as the title over the property has been transferred by the company in favour of the Applicants by way of sale deed executed on 14.7.2005.

  5. It is not in dispute that the company M/s. Vijetha Agro Farms (India) Limited, Guntur has collected huge sums of money by way of deposits from the general public and utilizing the money so collected, various assets have been acquired by it which...

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