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The respondent's failure to file Form No. 365a constitutes an omission to disclose security, requiring surrender of the security for the general benefit of all creditors under Rule 170(1) of the Companies (Insolvency) Rules, 2005. The respondent did not apply for relief from this consequence, and thus must release the title deed to the liquidator.
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Despite the applicants' failure to prove a registered legal interest in the property, they were in possession of the attached property at the time the attachment order was issued, satisfying the requirement under Order XXI Rule 58 of the Civil Procedure Code. Therefore, the application to lift the attachment and sale order was meritorious.
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The petitioner failed to provide sufficient, concrete evidence or a non-speculative plan demonstrating how administration would achieve the statutory purposes. The application was based on mere prospects and speculative proposals rather than substantiated turnaround strategies, failing the requirements of section 247(3) of the Companies Act.
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