9911796707
TMI Blog1964 (2) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to as the company). The total paid up capital of the company is rupees five lakhs (Rs. 5,00,000) divided into 125 shares of Rs. 4,000 each. The Northern Railway holds 35 shares, the Himachal Pradesh Administration holds 77 shares and the balance of the 5 shares are held by four other shareholders. The facts giving rise to this petition are not in dispute. In 1959 the assets and business of the company were taken over by the Mandi Kulu Road Transport Corporation, Mandi, of which the shareholders are Himachal Pradesh Administration to the extent of 40 per cent., Punjab Government to the extent of 40 per cent., and Northern Railway to the extent of 20 per cent. Certain disputes arose between the company and the corporation with regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is not available to the liquidator in a winding up, whether voluntary or official, nor can the share holders give any such power to him. (2)The remuneration fixed for the voluntary liquidator is exorbitant. (3)The resolutions which are passed by the board of directors of the company in the meeting held on the 6th and 7th of September, 1961, to the effect that the liabilities incurred before the Himachal Pradesh Administration joined as a shareholder and paid off by the reconstituted company be debited to the account of the old shareholders holding 48 shares in the company prior to September, 1953, are invalid. It is also calculated to favour the Himachal Pradesh administration, of which respondent No. 2 is 'the judicial secretary, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Mandi Kulu Road Transport Corporation, which has to pay compensation for the route permits, the petitioners have no shares, white, so far as the Himachal Pradesh Administration and the Northern Railway are concerned, they have shares in that corporation as well as in the company and, so far as they are concerned, they will not be affected whatever the amount of compensation. The petitioners' apprehension is that their interests may be jeopardised by the award of too little compensation. I do not say that this apprehension is justified, but all the same it is but natural and it would be allayed if the court steps in to make a supervision order. Mr. S.M. Sikri on behalf of the respondents pointed out that supervision orders are rarely mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g up subject to the supervision of the court, shall for all purposes, including the staying of suits and other proceedings, be deemed to be an order of the court for winding up the company by the court." Thus all the advantages available under section 446 of the Act to a company which is being wound up by the court be available in case supervision order is made in this case and it would not be necessary for the liquidator to have resort to the civil courts, so that all the matters can be settled in this court. This should ordinarily make for expedition as well as economy. In view of all these considerations I direct under section 522 of the Act that the voluntary winding up shall continue, but subject to the supervision of the court, with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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