9911796707
TMI Blog1985 (1) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is not in a position to present any scheme for the purpose of reviving the company either immediately or in the immediate future. The winding-up petition was moved against the appellant company by one of the creditors at a time when the company ceased to function. The company has two textile units employing about 8,000 workers. It is engaged in the manufacture of textiles. Both the textile units are situate in the city of Ahmedabad. The authorised capital of the company is Rs. 1,50,00,000 and the subscribed capital is Rs. 98,20,725. It is said that the appellant-company incurred a loss of Rs. 580 lakhs in the financial year 1983-84. It is admitted that the company's operations resulted in exceeding the drawing limits with banks a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n also appeared to oppose the appeal. It was the case of the workmen that they had not been paid wages from May, 1984, onwards, and that the wages were continuously in arrears. According to the workmen, though they would certainly welcome the idea of the company reviving its activities and would be more anxious than the company itself about such revival, there is absolutely no possibility as matters stand now particularly in view of the attitude of the directors. Ever since May, 1983, they had not been paid any wages at all even a part of what was legitimately due to enable their families to survive. They plead that they may get some relief in the event winding-up proceedings are not further protracted. We had even suggested to the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irectors of the company be served on the Central Bank of India. Evidently, the company judge so ordered because the directors had referred to certain proposals for revival of the company demanding funds from the Central Bank of India and other banks and the court wanted to know how far there was any prospect of such proposal materialising. In the affidavit of the chief officer of the Central Bank of India, it was averred that the four banks, the Central Bank of India, the United Commercial Bank, the Syndicate Bank and the Bank of Madura Ltd. propose to remain outside the winding up as secured creditors and their counsel had remained present in the winding-up proceedings only to give information that the court may require. They have not admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the company and for that purpose the court is called upon to make a discreet exercise. On the facts of the case, we do not think that there is any reasonable prospect of the company reviving its normal operations. We say so because despite granting more than reasonable time, what the counsel has to say is only what was said at the beginning when the matter came up before us for the first time, namely, that the company, may be able to find out someone or other to finance it. According to the appellant-company, the State Government may come forward to extend its helping hand, but, according to the creditors, such request was turned down taking due note of the company's situation. Anyhow, we have no material before us to assume that for al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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