Judgment:
CA No.149 of 2012 CP No.12 of 1997 IN THE HIGH COURT AT CALCUTTA Original Jurisdiction ORIGINAL SIDE IN THE MATTER OF: CASION FINANCE & INVEST.
(INDIA) LTD (LIQN) -AndMD FAZLUR RAHMAN -VSTHE OFFICIAL LIQUIDATOR Appearance: Mr.S.B.Mookerjee, Sr.Adv.Ms.Pooja Daschowdhury, Adv.BEFORE: The Hon'ble JUSTICE SANJIB BANERJEE Date : June 5, 2012.
The Court : This application is by one of the small investors who had made a deposit under Section 58A of the Companies Act in the company prior to its liquidation.
The company (in liquidation) appears to have been one of those commercial ventures floated primarily to dupe small investORS.Several thousands of investors stand in queue to obtain refund of the principal amounts invested or even part thereof.
The official liquidator does not have funds to meet the claims of the small investORS.In addition, there are claims by statutory authorities like the income tax department.
In couRs.of the matter being taken up it transpired that the company had been acknowledged by Shaw Wallace & Co.LTD.to be a depositor in Shaw Wallace & Co.LTD.about a decade or so back when a scheme was propounded by Shaw Wallace & Co.LTD.to pay its creditORS.Advocates representing Shaw Wallace & Co.LTD.in the scheme were requested to look into the matter and senior Advocate then appearing for Shaw Wallace & Co.LTD.has taken a personal interest to ensure that the principal amount acknowledged by Shaw Wallace & Co.LTD.to be due to this company (in liquidation) was paid back.
It may be of some significance that the company (in liquidation) obtained a decree against Shaw Wallace & Co.LTD.but more than 14 years has elapsed and execution proceedings have not been levied.
Shaw Wallace & Co.LTD.has since merged into United Spirits LTD.and United Spirits LTD.has agreed to pay the principal sum of Rs.5,78,66,817/- in monthly instalments spread out over two years with the initial payment of Rs.50 lakh being made by June 30, 2012.
United Spirits LTD.has agreed that monthly payments of Rs.22,98,557/- would be made on the seventh day of every month beginning October, 2012 and ending August, 2014.
The official liquidator will request the income tax department for waiver of penalty and interest.
The official liquidator who is present in Court says that a request has already been made and a reply received.
The official liquidator will assess the matter and apply for appropriate directions upon notice to the income tax department so that a fair and equitable amount can be paid to the income tax department, leaving money to be paid to the small investors including the applicant herein.
A default clause has also been suggested by United Spirits LTD.to the effect that in default of payment of the fiRs.instalment or any of the monthly instalments, the entire sum then remaining due shall become payable by United Spirits LTD.to the company (in liquidation) with interest at the rate of 12% per annum unless the Court extends the time for making payment of the defaulted amounts.
The Court appreciates the gesture on behalf of Senior Advocate formerly representing Shaw Wallace & Co.LTD.C.A.No.149 of 2012 is disposed of.
There will be no order as to costs.
Urgent certified photocopies of this order, if applied for, be given to the parties subject to compliance with all requisite formalities.
(SANJIB BANERJEE, J.) A/s.