9911796707
TMI Blog1999 (1) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... he company ran into difficulties and reached a stage where it was neither able to do business satisfactorily nor was it able to repay large amounts which it owed to the various financial institutions. According to the petitioner as a result of this situation, in the year 1992 the KSIIDC exercising powers under section 29 of the Karnataka State Financial Corporation Act locked the premises as a result of which the business came to a standstill. According to the petitioners, for several years the assets of the company were not liquidated and since the liabilities kept increasing, in the year 1997 they filed a writ petition asking for appropriate directions from the court, inter alia , for purposes of reviving the company. In the meanwhile, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e examined and I find that none of them can come in the way of the court granting the application filed on behalf of the petitioners. At the same time, I do appreciate the parallel liabilities and the need to secure the interest of the financial institution and from this point of view I propose to issue certain specific directions to the official liquidator. The petition succeeds. The company is ordered to be wound up under section 433( c ) of the Companies Act. The official liquidator is appointed liquidator for this purpose. The petitioners represented by the managing director and the other directors to deposit a sum of Rs. 5,000 per director with the official liquidator against initial expenses for the winding up proceedings within a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons canvassed by learned counsel who represents the bank that several crores of rupees of public money are involved in this case and it is his contention that the failure of the company has been deliberately brought about and that the directors who have applied for winding up of the company are trying to take advantage of their own wrongs in order to get out of their personal liabilities. The official liquidator is directed to forthwith engage the services of a competent chartered accountant for purposes of investigating into the complaint put forward by the bank and the bank is directed to deposit a sum of Rs. 10,000 with the official liquidator within four weeks against initial expenses. The official liquidator shall direct the chartered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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