9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1068 - HC - Companies LawWinding up petition - Held that - It is apparent that the business of the respondent company has been carried on fraudulently, deceptively and with malafide intentions, and therefore, the fit case to lift the corporate veil of the respondent company. As per the affidavit dated 14.02.2012 filed in this Court by Shri V.K.Sharma, CMD of JVG group Companies in CP 265/1998, it was stated by him that all the properties of the respondent companies have been acquired with the funds of petitioner only and actually owned by it and the name of the respondent company has been used as a corporate personality as a cloak for committing fraud upon the innocent depositors/ investors/ creditors of the respondent company. Shri V.K.Sharma the ex-managing director of JVG group of Companies vide his affidavit dated 14.02.2012 also stated that all the land properties in different JVG group Company were purchased out of funds of petitioner and he has no objection if the properties of all the JVG group companies are sold and the investors of all the JVG group companies are paid. He further stated that all the creditors/investors of different JVG group companies may be treated as the investors of JVG Finance Limited. Since, the petitioner is a bonafide creditor of the respondent company and since despite notice the respondent company could not repay, so considering the overall circumstances the respondent company is ordered to be wound up under the provision of Section 433(e) and (f) read with Section 439(b) of the Companies Act, 1956. Ordered accordingly.
Issues:
Winding up petition under section 433(e) and (f) read with section 439(b) of the Companies Act, 1956 by the petitioner as a creditor. Analysis: 1. The petition was filed for the winding up of the respondent company under section 433(e) and (f) read with section 439(b) of the Companies Act, 1956. The petitioner, acting through the Official Liquidator, sought the winding up of the company as a creditor based on a court order. 2. The ex-management of the company expressed no objection to the winding up of the company during the proceedings on 14.09.2017. 3. The respondent company was incorporated as a public company limited by shares under the Companies Act, 1956, with its registered office in New Delhi. The company's authorized and paid-up share capital was specified. 4. Details obtained from the Ministry Of Corporate Affairs indicated that the respondent company had not held annual general meetings or filed necessary statutory reports for an extended period. The company had also suspended its business operations. 5. The Serious Fraud Investigation Office conducted an investigation into the affairs of the JVG group of companies, revealing instances of fund siphoning for land purchases. The respondent company was found to owe substantial amounts to the petitioner. 6. The investigation further uncovered that properties of the respondent company were acquired using funds belonging to the petitioner, leading to fraudulent activities. The ex-managing director of the JVG group of companies confirmed the acquisition of properties using petitioner's funds. 7. Given the fraudulent activities, inability to repay debts, and overall circumstances, the court found it just and equitable to wind up the respondent company under the relevant provisions of the Companies Act, 1956. 8. Previous winding up petitions and orders against related companies by the Reserve Bank of India were also noted in the judgment, emphasizing the pattern of fraudulent conduct within the group. 9. The court ordered the winding up of the respondent company, considering the petitioner's status as a bona fide creditor and the failure of the respondent company to repay the debts despite notice. The petition and pending applications were consequently disposed of.
|
