9911796707
TMI Blog1992 (3) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... pany. It is submitted by Shri V. L. Mathur, learned counsel, that the company was incorporated under the Companies Act on January 2, 1976, as a private limited company with its registered office at Jaipur. The petitioner was inducted as a director of the company on September 16, 1976. After formation of the company, for a variety of reasons, it could not commence its business. The auditors' report dated December 31, 1977, and the profit and loss accounts, annexures 2, 3, 4 and 5, clearly substantiate that the company could not start any activity. Non-petitioner No. 4, the Registrar of Companies, therefore, filed a criminal case against the petitioner as well as non-petitioners Nos. 1, 2 and 3, who were the directors of the company in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denied by the Rajasthan Financial Corporation also in the objections raised. It is pointed out that the company has to be wound up, since as required by sub-clause ( c ) of section 433 of the Companies Act, 4956, it did not commence its business within a year from its incorporation, and the business stands suspended since several years. As per sub-clause ( d ) of the section mentioned above, the number of members could not have been below 2, but presently the petitioner is the only director. Since the company is technically in existence, the petitioner is always in danger of criminal prosecution and several other responsibilities lie upon him in accordance with the various provisions of the Companies Act, which he is not in a position to f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company. A reply to the petition has also been filed by the Registrar of Companies. In his reply, it has been stated in para 14 that if the company cannot carry on its business activities only in those circumstance it would be proper to pass a winding-up order. I have heard both the parties and gone through the documents on record. It is evident from the facts and circumstances mentioned above that the company did not commence its business within a year from its incorporation and the business stands suspended since several years Possession of the factory itself was taken over by the Rajasthan Financial Corporation as early as in the year 1980 and the same had been already auctioned to recover the loan amount advanced by the Rajasthan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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