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TMI Blog1952 (9) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... d incurred a loss of Rs. 78,621-13-2. The company was, therefore, insolvent and unable to pay its debts. It is on these facts that the State Government accorded its sanction to the presentation of this petition by the Registrar. That sanction was given on 6th November, 1950, but the petition was not presented until 23rd June, 1952. In the interval the company had published the balance-sheets for two subsequent years. The balance-sheet for the year ending with 30th November, 1950, has been dealt with at some length in the petition, but the net result shown by this balance-sheet is an ultimate loss of Rs. 1,04,593-7-4. The petition then mentions, almost in passing and as if it had no bearing on the question with which the petition related, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present a petition for winding up of the company at any time thereafter. That could not have been the intention of the Legislature; and it is obvious to me that a petition filed by the Registrar for winding up with the sanction of Government must be filed within a reasonable time of the obtaining of such sanction, failing which the court will refuse to recognise the sanction as a valid sanction. The proviso to section 166, sub-section ( aa ), sub-clause ( ii ), shows that the sanction shall not be given unless the company has been afforded an opportunity of being heard. This safeguard in the interest of the company will be rendered completely nugatory if sanction was to be obtained on one set of facts which were placed before the sanctionin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its activities owing to the risk inherent in the war situation. It none the less continued to maintain its office and incurred expenses in respect thereof. Thereafter after the close of the war an export license was necessary for exporting groundnuts and although the company did its best to obtain one it succeeded in getting an export license only in the year 1950. In the meantime it went on incurring expenses for maintaining the organisation and for travelling and other expenses for attempting to obtain an export license. The moment it got an export license in 1951 it made a profit of Rs. 97,180-3-6, which practically wipes out the previous accumulations of loss. Now, the balance-sheet for the year ending 30th November, 1951, shows amongst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uotas for 1951 during which year the company held a quota for export of 3,000 tons of groundnuts which brought in to the company a profit of over Rs. 97,000. If the company is allotted a similar quota for 1952, as it seems likely that it may be, there is a prospect of the company making good profits. In any event, it appears to me that the company ought to be given a chance to have the working of a normal year or two in order to determine whether its activities can or cannot be carried out at a profit. The company's present position taken in conjunction with its immediate future prospects does not appear to me to justify a winding up order at present, and, therefore, the petition shall be dismissed. It shall, however, be open to the Regis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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