2010 (4) TMI 1170 - HC - Companies Law

Summary

Issues involved: Petition for winding up of respondent Company u/s 433 and 434 of the Companies Act, 1956.

The judgment pertains to a petition for the winding up of a company under sections 433 and 434 of the Companies Act, 1956. The respondent company, Mahendra Suitings Limited, was reported to have been before the BIFR and AAIFR, leading to a stay in the proceedings. However, upon the Company Petition being taken up for hearing, the respondent company expressed its lack of inclination to contest the petition. The respondent company's advocate conceded that there was no case on merits and that the company had failed before the BIFR and AAIFR.

The Court, after considering the financial position of the respondent company and the lack of contestation, concluded that the company was not viable and was unable to pay its debts to creditors. Consequently, the Court ordered the winding up of Mahendra Suitings Limited. The Official Liquidator attached to the Court was appointed as the Official Liquidator for the respondent company and directed to take possession of its properties, including bank accounts, cash, and account books, after preparing an inventory and Panchnama. The Official Liquidator was instructed to submit a report within three months and authorized to engage the services of the Official Valuer if necessary for the preparation of possession notes. No costs were assigned in this matter.