2017 (12) TMI 1863 - HC - Companies Law

Seeking winding up of the respondent company - respondent company is unable to pay its debts - Sections 433(E) and 434 (1)(A) of the Companies Act 1956 - HELD THAT - The petition is admitted and the Official Liquidator attached to this Court is appointed as the Provisional Liquidator. He is directed to take over all the assets books of accounts and records of the respondent-company forthwith. The citations be published in the Delhi editions of the newspapers Statesman (English) and Veer Arjun (Hindi) as well as in the Delhi Gazette at least 14 days prior to the next date of hearing. The cost of publication is to be borne by the petitioner who shall deposit a sum Rs.75, 000/- with the Official Liquidator within 2 weeks subject to any further amounts that may be called for by the liquidator for this purpose if required - The Official Liquidator shall also endeavour to prepare a complete inventory of all the assets of the respondent-company when the same are taken over; and the premises in which they are kept shall be sealed by him. List on 20.04.2018.

Summary

Issues:
Petition filed under Sections 433(E) and 434(1)(A) of the Companies Act, 1956 seeking winding up of the respondent company.

Analysis:
The petitioner alleged that the respondent company ordered goods but failed to pay the outstanding amount of Rs.62,14,189.04. The respondent company acknowledged in writing on 29.07.2015 that Rs.60,03,089.04 was due and payable as of 30.06.2015. Despite a statutory legal notice sent on 22.02.2016, the respondent company did not reply. The court noted the confirmation/acknowledgement dated 29.07.2015 as evidence of the respondent company's inability to pay its debts.

Decision:
The petition was admitted, and the Official Liquidator attached to the Court was appointed as the Provisional Liquidator. The Official Liquidator was directed to take over all assets, books of accounts, and records of the respondent company immediately. Citations were to be published in specified newspapers and the Delhi Gazette at least 14 days before the next hearing. The petitioner was required to bear the cost of publication and deposit Rs.75,000/- with the Official Liquidator within two weeks. The Official Liquidator was instructed to prepare an inventory of all assets, seal the premises where they are kept, and may seek the assistance of a valuer for asset valuation. Police help could be sought if necessary. Further steps to protect the respondent company's premises and assets were to be taken by the Official Liquidator. The case was listed for the next hearing on 20.04.2018.