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Issues: Winding-up petition based on debt, application for adjournment due to new management takeover, feasibility report for company revival, support for adjournment from creditors United Western Bank and SICOM, decision on winding-up.
Winding-up Petition Based on Debt: The judgment pertains to a winding-up petition filed based on a debt of Rs. 800. The company, through its counsel, acknowledged the debt but expressed its inability to make the payment at the present time. Application for Adjournment due to New Management Takeover: During the hearing, the company's counsel sought an adjournment citing a recent change in management. The new management aimed to revive the company and its subsidiary, seeking a four-month adjournment to present efforts towards this goal. The court granted the adjournment until the end of the year 1978. Feasibility Report for Company Revival: The company submitted an affidavit stating the feasibility of restarting operations, supported by a report dated 5th April, 1978. The report outlined the need for additional components and estimated costs for machinery repair. The United Western Bank and SICOM expressed willingness to provide financial support for the company's revival, emphasizing the potential for profitability. Support for Adjournment from Creditors United Western Bank and SICOM: Both the United Western Bank and SICOM filed affidavits supporting the company's application for adjournment. They highlighted the importance of allowing the company to continue operations to safeguard their interests as creditors. However, the affidavits did not commit to providing financial assistance for the company's revitalization. Decision on Winding-up: Despite the support from major creditors, the court found the company to be dormant since March 1976, with no prospects of debt repayment or profitability. The court concluded that prolonging the process would not serve any purpose and ordered the winding-up of the company. The costs of the petitioner were to be covered by the company's assets, with a temporary stay on the order granted until a specified date. This detailed analysis of the judgment covers the issues of the winding-up petition, the application for adjournment, the feasibility report for company revival, the support from creditors, and the final decision on winding-up, providing a comprehensive understanding of the legal proceedings involved.
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