9911796707
TMI Blog2001 (11) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... 1934 (for short "the Act") for winding up of the respondent-company on the contention that the conditions required under section 45-IA of the Act have not been fulfilled and the respondent-company has exposed itself to the winding up. The say of the petitioner is that the petitioner is a body corporate established under the provisions of the Act, having its central office at Shahid Bhagat Marg, Mumbai and having its regional office at various places including Ahmedabad. That in exercise of the powers conferred by sections 45J, 45K and 45L of Chapter III of the Act, the petitioner issued the Non-Banking Financial Companies Directions, 1997, the Non-Banking Financial Companies Acceptance of Public Deposits (RB) Directions, 1998, and the NBFC Prudential Norms (RB) Directions, 1998, to regulate the acceptance of deposits by companies carrying on the business of non-banking financial institutions. That the respondent-company is a non-banking financial institution and bound by the provisions of the directions issued from time to time. That the respondent-company in the name and style of Lalbhai Finance and Trading Ltd. has been registered with the Registrar of Companies, Ahmedabad, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso satisfied. That a number of depositors of the respondent-company have filed applications before the Company Law Board, Western Region Bench (CLB) seeking directions under section 45QA of the Act to repay the matured deposit lying with the company. The Company Law Board by various orders directed the company to repay the deposits on the terms and conditions contained therein. The petitioner has referred to the application numbers and the date of order passed by the Company Law Board, wherein the respondent-company has been directed to repay the deposit amount. The Company Law Board has also passed the orders directing the respondent-company to repay the deposit amount with interest on the terms and conditions and in some of the orders, the Company Law Board also directed the depositors to approach the mana-ger of the petitioner-bank in the event of default by the respondent- company in the repayment of the deposit amount. That the respondent-company has not fully complied with the orders passed by the Company Law Board inasmuch as the respondent-company is stated to have complied with the first order dated June 8, 1998 passed in Company Application Nos. 1035 to 1040/58A(9)/CLB/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s liable to be dismissed as not maintainable. That the company has paid part amount to the depositors in compliance with the orders passed by the Company Law Board. That the company is ready and willing to pay the remaining amount as and when sufficient amount is generated for payment to the remaining depositors. That the respondent-company is likely to come out of its financial difficulties in the near future. That the authorised capital of the company is Rs. 15 crores and there is no reason to wind up the respondent-company. It is not in dispute that the respondent-company applied for registration to the Reserve Bank of India which registration was refused to the company as the company is doing the business of non-banking financial institution as investment company and submitted the application for certificate of registration under section 45-IA of the Act on July 5, 1997, whereupon the Reserve Bank of India conducted certain inspection under section 45N of the Act with reference to the financial position of the respondent-company and according to the petitioner, inspection revealed that the respondent-company had contravened various provisions of the Non-banking Financial Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g satisfied that a non-banking financial company, ( a )is unable to pay its debts; or ( b )has by virtue of the provisions of section 45-IA become disqualified to carry on the business of a non-banking financial institution; or ( c )has been prohibited by the bank from receiving deposit by an order and such order has been in force for a period of not less than three months; or ( d )the continuance of the non-banking financial company is detrimental to the public interest or to the interest of the depositors of the company; may file an application for winding up of such non-banking financial company under the Companies Act, 1956 (1 of 1956). (2) A non-banking financial company shall be deemed to be unable to pay its debt if it has refused or has failed to meet within five working days any lawful demand made at any of its offices or branches and the bank certifies in writing that such company is unable to pay its debt. (3) A copy of every application made by the bank under sub-section (1) shall be sent to the Registrar of Companies. (4) All the provisions of the Companies Act, 1956 (1 of 1956), relating to winding up of a company shall apply to a winding up proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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