9911796707
TMI Blog1995 (9) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... es, applicants' proposal for rehabilitation of the company was accepted in 1985. The petition for winding up by Universal Starch Chem Allied Ltd. on the company's being unable to pay admitted debts, was allowed in 1986. The winding up order was affirmed in appeal, vide order dated February 24, 1992. The petitioners sought the revocation of the winding up, approval of the revival scheme proposed and interim stay during the winding up proceedings, and further restraining the official liquidator from taking possession of the company during the pendency of the proceedings. The petitioner, T. S. Rai-'s proposal by his scheme 1985 for rehabilitation and revival of company was approved by the Industrial Finance Corporation of India. In the mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sposing of assets of the company and the usual business of the company was allowed to be carried on. Notice was served on the industrial and financial institutions, as well as on the public at large. Notice was also duly published in daily newspapers on January 23, 1994, and in the Official Gazette on January 7, 1994. Notice under rule 86 of the report of the official liquidator was served on the official liquidator. A similar notice was sent to the Government of India through the Regional Director. The Central Government and the official liquidator filed their reports. It may be noticed that a similar claim was declined on October 27, 1989, in C. P. No. 126 of 1986. Another similar request made by the petitioners was dismissed as withd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 25 lakhs to approve the memorandum of understanding already signed on July 26, 1993. It would be expedient to note a few facts with respect to the meeting held by the unsecured creditors. There are totally 106 unsecured creditors, out of which only 13 of them attended the meeting either being present in person or through proxies. Out of the unsecured creditors, 8 holding 83.731 per cent, of the unsecured debt approved the scheme. I may hasten to add that PSIDC which has already transferred its shares to the proposer owes as to creditor Rs. 1,94,17,715 which makes 76.3200 per cent. The other creditors who have got some substantive amounts due are National Small Industries Corporation Ltd. which has got to its credit 14,23,694.48, i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cas 432 (Kar), Gulabchand Chhotalal Parikh v. State of Gujarat, AIR 1965 SC 1153, Sakamari Steel and Alloys Ltd., In re [1981] 51 Comp Cas 266 (Bom), Minerva Mills Ltd. v. Union of India SCR 206 ( sic ) , R. Raghavan v. Samarias Housing Finance Ltd. [1991] 1 Comp LJ 155 (Mad) and Wearwell Cycle Co. ( India ) Ltd., In re [1998] 94 Comp Cas 723 (Delhi) ; [1994] 1 Comp LJ 219 may be referred to for drawing support for the various considerations spelled out above. Under orders of this court separate meetings of shareholders, secured creditors and unsecured creditors were held on April 12, 1994. The shareholders and secured creditors approved the scheme of rehabilitation in its entirety particularly keeping in view the memo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assets of the company would hardly be able to clear the liabilities of the secured creditors only. Nothing would survive for unsecured creditors or the shareholders. There is not an iota of evidence on record or even a suggestion on the part of the official liquidator or the Central Government or any creditor, shareholder or debenture-holder that the scheme is either not feasible or not viable or it lacks bona fides . The solitary fact that unsecured creditors of the value of percentage are opposed to the compromise cannot be permitted to hold the other creditors or the company to ransom particularly when small creditors to the tune of Rs. 5,000 are to be paid in full. I may hasten to add that out of unsecured creditors for Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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