SRI SHAMIR KUMAR v. MEGHA

1. SRI SHAMIR KUMAR S/O LATE N.C.CHAKRAVARTHI, AGED ABOUT 48 YEARS, R/AT QUARTERS NO.131/B, MNPM HOUSING COLONY, BELAGULA, SRIRANGAPATNAT ALUK, MANDYA DISTRICT-571606.

2. SMT. SAPNA DAS W/O MR. SOMNATH DAS, D/O LATE N.C.CHAKRAVARTHI, AGED ABOUT 44 YEARS, R/AT NO.285, 1ST FLOOR, 3RD MAIN, 3RD CROSS, SHARADADEVI NAGARA, MYSORE-570 022. (BY SRI. PRAKASH K.A., ADVOCATE) AND: Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA THE MANDYA NATIONAL PAPER MILLS LTD (IN.LIQUID), A COMPANY REGISTERED UNDER THE COMPANIES ACT 1956, HAVING ITS REGD., OFFICE AND MILLS AT BELAGULA-571 606, REP BY ITS OFFICIAL LIQUIDATOR, HIGH COURT OF KARNATAKA, …APPLICANTS - 2 - NC: 2025:KHC:3289 CA No.295 of 2023 In COP No.112/1994 12TH FLOOR, RAHEJA TOWERS, MG ROAD, BENGALURU - 560 001. …RESPONDENT (BY SRI.K.S.MAHADEVAN, ADVOCATE) IN C.A.NO.295/2023, THIS APPLICATION IS FILED UNDER SECTION 446 (2) OF THE COMPANIES ACT, 1956 R/W RULES 6 AND 9 OF THE COMPANIES (COURT) RULES, 1959 FURTHER R/2 SEC.151 OF THE CIVIL PROCEDURE CODE, 1908, PRAYING TO EXECUTE THE SALE DEED IN FAVOUR OF APPLICANT NO.1 HEREIN IN LINE WITH THE ORDER DATED 16TH JULY 2004, PASSED BY THIS HON’BLE COURT IN COMPANY APPLICATION NOS.12/02, 967/02, 511/01 TO 514/01, ETC, AND GRANT SUCH OTHER RELIEFS AS THIS HON’BLE COURT MAY DEEM FIT TO GRANT IN THE CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPLICATION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present application in CA.No.295/2023 is filed in COP.No.112/1994 seeking a direction to the Official Liquidator to execute the Sale Deed in favour of applicant No.1 in line with the order dated 16.07.2004 passed by this Court in a batch of company applications.

2. This Court in a batch of company applications has passed an order on 16.07.2004 and had held that it will be in the interest of the creditors and other stake-holders to permit the Official Liquidator to effect sale of the houses in occupation of each of the occupant on accepting the price of Rs.12,500/- - 3 - NC: 2025:KHC:3289 CA No.295 of 2023 In COP No.112/1994 as has been offered by each of the occupant. The Official Liquidator on receiving the full sale consideration was directed to execute necessary sale documents in favour of the applicants as per law. It was also made clear that the expenses to be incurred towards stamp duty, registration charges and other incident charges are all to be borne by the purchasers and the applicants/purchasers were given three months' time for paying the sale consideration and to have the Sale Deeds registered in their favour. It was also made clear that the order will hold good in respect of all occupants in occupation of the three hundred houses and no separate order is required for the Official Liquidator to execute a Sale Deed in respect of the three hundred houses in the occupation of the present occupants.

3. It is the case of the applicants that they are in occupation of quarters bearing No.131/B, situated in MNPM Housing Colony, Belagula, Srirangapatna Taluk, Mandya District. The father of the applicants was working as Machine Boy, Paper Machine Department and the allotment was vide order dated 17.05.1988. The father of the applicants died on

16.12.2019. During his lifetime, CA.No.841/2011 was filed and - 4 - NC: 2025:KHC:3289 CA No.295 of 2023 In COP No.112/1994 the Court by order dated 09.03.2012 had disposed off the application along with the other applications observing that at this juncture, a positive direction to execute the Sale Deed cannot be issued to Official Liquidator as things stand. However, liberty is granted to the applicants to establish the fact that they are not only the employees of the company in liquidation but also the residents of the quarters and once that is established, the Official Liquidator shall act in accordance with the directions issued by the Court in order dated

16.07.2004 in CA.No.12/2002 and connected matters. It is the case of the applicants that in spite of the father of the applicants having paid the amount in the year 2004 itself so far, the registration is not done.

4. It is submitted on behalf of the Official Liquidator that as all the documents which are required were not before them, they could not register the document. It is submitted that now along with the petition, he has filed two basic documents that is the allotment of the father, Aadhaar card and the family certificate and the death certificate. It is submitted that the father is survived by the applicants. As per that, the second applicant has no objections to execute the Sale Deed in favour - 5 - NC: 2025:KHC:3289 CA No.295 of 2023 In COP No.112/1994 of the first applicant. It is submitted that once the draft Sale Deed is furnished along with the indemnity bond, once the requisite documents are furnished within one week, there will not be any difficulty for the Official Liquidator to execute the Sale Deed. It is also submitted that no doubt the amount is paid in the year 2012. Until now, the Sale Deed could not be executed.

5. In the light of the submission made on behalf of the Official Liquidator, there is no dispute about the fact that the father of the applicants was allotted a quarters vide allotment dated 17.05.1988 and he has been residing in the same till he died in the year 2019. They have also placed those documents before the Court and as far as that is concerned, the Official Liquidator has no objection. Then coming to the execution of the Sale Deed in favour of the first applicant is concerned, as submitted by the Official Liquidator, there needs to be a bond as required and any undertaking to be submitted by the second applicant before the registering authority. In that view of the matter, this Court is passing the following order: NC: 2025:KHC:3289 CA No.295 of 2023 In COP No.112/1994 - 6 - ORDER i. The applicants shall furnish the draft Sale Deed and other necessary documents to the Official Liquidator within one week from the date of receipt of the copy of the order. ii. Within 10 days from there on, the Official Liquidator shall execute the Sale Deed. iii. Accordingly, the Company Application disposed off. SD/- (LALITHA KANNEGANTI) JUDGE MEG List No.: 1 Sl No.: 8