9911796707
TMI Blog1962 (9) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... Private) Ltd., Bhatinda, was incorporated in 1950 with its registered office at Bhatinda, with the nominal capital of Rs. 2,00,000 divided into 2,000 shares of Rs. too each. The subscribed capital of the company was Rs, 1,80,600 consisting of r,8o6 ordinary shares of Rs. 100 each. The main object of the company is to carry passengers and goods in the buses and trucks. The petitioner became a shareholder by obtaining shares of the value of Rs. 16,500. In lieu of the share money he gave to the company his two buses along with two route permits. The allegations of the petitioner in his winding up petition are that the company had suspended its business for over a year and is therefore liable to be wound up under section 433( c ) of the Compani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated was still due from the transferee company. Phulel Singh further stated that the company had no cash in any other branch, bank or its office and the money may be with the directors. He could not state how much money of the company was with each director. He could not give any reason as to why the cash belonging to the company was not being kept in the company ox with the bank but with the directors instead. He then said: " It is true that the company has no intention to do any business and has ceased doing any business after the sale of its vehicle. I also admit that the three vehicles standing in the premises of the company are awaiting disposal." By my order of 1st June, 1962, in this case I had directed that the funds of the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply, or do not oppose the winding-up, then I appoint the provisional liquidator." This is no doubt the safe advice for the courts to follow. It is, however, alleged in this case that the circumstances contemplated by Lord Romilly, when considering the desirability of making appointments of provisional liquidators are totally different. It is contended that the business of the company which consisted of plying transport vehicles was at a stand-still as the company had disposed of eleven of its vehicles along with permits for Rs. 1,26,000 and it had realised Rs. 91,000. Phulel Singh also stated that no part of this amount had been deposited in the bank or kept in the office of the company. This money has been retained by the directors. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Rs. 39,000. It was also stated that another amount of Rs. 4,500 was due to the respondent from Friend's Transport Service, registered, Bhatinda. Another sum to Rs. 19,000 was lying in deposit with the Punjab Transport Co-operative Society Ltd. for meeting the scheme of the erstwhile workmen of the respondent company. It will thus appear from the affidavit of Jagdev Singh himself that the money belonging to the company is in the hands of other persons. It is then alleged that these persons are selling their shares and the amounts are repayable, the basic fact is that the company today is not in possession of more than Rs. 5,015,45 nP. My attention has been drawn to In re Saw Mills and Industries Ltd. [1963] 33 Comp Cas 817 wherein it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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