9911796707
TMI Blog1947 (9) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... he company. The company has been duly served and is now represented before me by counsel. In addition, the trustees for the holders of the first debentures issued by the company are represented by counsel, and one shareholder appears by counsel. The company was registered in January 1929 and has an authorised capital of Rs. 23 lakhs divided into 20,000 ordinary and 3,000 preference shares, each of the face value of Rs. 100. The issued capital is 11,290 ordinary shares and 1,162 preference shares all of which except to a small extent of Rs. 120 are fully paid. Thus the paid-up capital of the company amounts to Rs. 12,45,200. The petitioner is a creditor of the company for a capital sum of Rs. 1,06,465 odd plus interest. On the 15th July he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not extend to the manufactured stock, raw materials and furniture said to be worth about 11 lakhs of rupees. It is common ground that the company's mills were closed on the 24th May this year and that since that date no business has been done. Counsel for the trustees of the first debenture holders has explained that his clients took over the control of the business on the 14th February, 1947, for non-payment of interest. It was then arranged between the board of the company and the trustees that the trustees would work the mills for three months and would defer bringing their security to sale for that period. Counsel described this as a last effort to see whether the company could be run profitably. The money required (about 2 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... still continues. It seems that police assistance has already been sought to secure the safety of the company's representatives and its property at Rajahmundry. On account of these circumstances and on account of the fact that the partners of the managing agents of the company and the trustees of the debenture holders are all residing at Bombay, the petitioner fears for the safety of the company's assets. It is not suggested that these fears are unjustified. I am satisfied that this is a case in which the appointment of a provisional liquidator will be proper. Counsel for the petitioner has referred me to the following observations of Lord Romilly, M.R., in In re the Railway Finance Co. [1866] 14 LT 507. That learned Judge observed: " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that a provisional liquidator should be appointed. I am satisfied that it is, and accordingly I make the appointment asked for. Ordinarily, I would appoint the Official Receiver, but I am asked to appoint Mr. R.G.N. Price of Messrs. Fraser and Rose, Charted Accountants of this city. The company is a large undertaking with its mills and registered office outside Madras and I am satisfied that it would be more suitable to appoint a Chartered Accountant rather than the Official Receiver. Accordingly I appoint Mr. Price as provisional liquidator of the company to take charge of the assets of the company at Rajahmundry. He will of course act in close co-operation with the trustees of the debenture holders who are already in possession of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
