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1980 (10) TMI 155 - HC - Companies Law
Issues:
Petition for winding up under section 433(c) and (e) read with section 439(b) of the Companies Act, 1956. Analysis: The petitioner, Syndicate Bank, filed a petition seeking the winding up of a company, M/s. Printersall (P.) Ltd., due to default in repayment of loans. The company was incorporated as a private company with limited liability under the Companies Act. The bank provided financial accommodation in the form of secured loans to the company, which the company failed to repay. The company ceased its operations, leading to labor troubles and legal actions by creditors. The bank issued a notice demanding repayment of outstanding amounts, which the company failed to fulfill. The bank sought winding up of the company due to non-payment of debts. The court admitted the petition and ordered citations to be published. Respondents, including the directors of the company, did not appear, leading to them being placed ex parte. The official liquidator was appointed as the provisional liquidator of the company. The official liquidator reported that the company had no assets and winding up would not benefit creditors. The bank argued that since the company had no assets or business operations, winding up was necessary in the public interest. The court considered the bank's arguments and the official liquidator's report. The court referred to a previous judgment highlighting that when a company's substratum is lost or its business becomes impossible, it is just and equitable to wind up the company. The court ruled in favor of the bank, ordering the winding up of the company, with the provisional liquidator appointed as the official liquidator. The court directed the petitioner to advertise the winding-up order and serve a copy to the Registrar of Companies. The directors of the company were instructed to file a statement of affairs with the official liquidator. The official liquidator was tasked with recovering debts and carrying out liquidation procedures in accordance with the Companies Act and Rules. A sealed copy of the order was to be served on the company or its directors by registered post.
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