Case Note & Summary
The applicant, Shri N R Ravi, claimed to be the owner of a property leased to M/s. SEM India Systems Private Limited (in liquidation) on 15.05.2008. The company was ordered to be wound up, and the Official Liquidator took possession. The applicant sought directions for the Official Liquidator to hand over possession of the schedule premises and pay arrears of rent from 15.07.2014 to 31.12.2015 for both ground floor (Rs.13,80,995) and first floor (Rs.13,43,238), along with future rent until possession is handed over. The court considered the application under Section 476 of the Companies Act, 1956 read with Rules 6 and 9 of the Companies (Court) Rules, 1959. The court held that the Official Liquidator is liable to pay rent for the use and occupation of the premises and must hand over possession to the landlord. The court directed the Official Liquidator to hand over possession and pay the arrears of rent as claimed, with future rent until possession is delivered.
Headnote
A) Company Law - Liquidation - Possession and Rent Arrears - Section 476 Companies Act, 1956 - Landlord sought possession of premises leased to company in liquidation and arrears of rent - Court held that the Official Liquidator must hand over possession and pay rent arrears as the company continued to use the premises after winding up - Held that the landlord is entitled to rent for the period of occupation and possession upon termination of lease (Paras 1-5).
Issue of Consideration
Whether the Official Liquidator is liable to hand over possession of the leased premises to the landlord and pay arrears of rent for the period of use and occupation by the company in liquidation.
Final Decision
The court allowed the application, directing the Official Liquidator to hand over possession of the schedule premises to the applicant and pay arrears of rent from 15.07.2014 to 31.12.2015 for both ground floor (Rs.13,80,995) and first floor (Rs.13,43,238), along with future rent until possession is handed over.
Law Points
- Landlord's right to recover possession and rent arrears from company in liquidation
- Official Liquidator's obligation to pay rent for use and occupation
- Section 476 Companies Act
- 1956
- Rule 6 and 9 Companies (Court) Rules
- 1959
