9911796707
TMI Blog2001 (9) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... uly 1, 1991, having its registered office situated at 42/43, Tapovan Society, Nizampura, Vadodara, to manufacture and/or to fabricate and to deal at national and international level in plant and machinery for welding consumables and equipment and offer them on turnkey basis or otherwise. That between January, 1994, and March, 1994, the petitioner had supplied EQ Wire rods against the post-dated cheque facility to the said company. The post-dated cheque No. 184747 dated March 31, 1994, for Rs. 23,50,000 and the post-dated cheque No. 197179 dated May 30, 1994, for Rs. 11,87,000 drawn by the respondent-company in favour of the petitioner, on presentation, were returned dishonoured. That despite repeated requests and reminders the respondent-co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a running concern and there are about 250-300 workers still working with the respondent-company; that approximately there is a turnover of Rs. 3 to 3.5 crores and the respondent-company is trying their best to get out of the financial difficulties and the respondent-company agreed to pay the amount due to the petitioner-company in monthly instalments of Rs. 50,000 for the initial period of six months and thereafter at monthly instalments of Rs. 75,000; that the respondent-company has already started making payments to the petitioner-company at Rs. 50,000 per month to show its bona fides. Looking to the aforesaid facts and circumstances and in view of the fact that the respondent-company is a running concern, it cannot be said that the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner against the respondent-company mounted to Rs. 15 lakhs and the petition came to be admitted and petition was ordered to be advertised in the newspapers as well as the Official Gazette. 6. The petition was advertised in the local daily newspaper Sandesh (Gujarati), Indian Express (English), Vadodara edition, on October 15, 1998. In reply to the public notice, Bombay Mercantile Co-operative Bank Ltd. has filed an affidavit testifying to the effect that the bank had granted an overdraft facility to the respondent-company to the tune of Rs. 50 lakhs against hypothecation of stock-in-trade consisting of welding apparatus, electrodes, accessories and consumables. The hypothecation facility to the tune of Rs. 50 lakhs against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the salaries of the employees or payment of electricity, water charges and other payments to the revenue and tax authorities. By the said order, payment to the Bombay Mercantile Co-operative Bank Ltd. at the rate of Rs. 4 lakhs per month was also excluded from the operation of the said order. 8. It is submitted by Mrs. M.A. Shah, counsel for the petitioner that the respondent-company has not complied with the order passed by this court from time to time; that even the Bombay Mercantile Co-operative Bank Ltd. has also dues amounting to more than Rs. 2 crores; that the respondent-company is not in a position to pay the dues and that the respondent-company is not a going concern and all that they have been doing is only a job work, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and debts have been mounting. The liabilities of the respondent-company are not in dispute. In the case before the Division Bench, the company was a going concern and was showing profit and dividends were paid to its members/shareholders and there was possibility of the company overcoming the financial crisis and setting out of the financial crunch. The ratio in the case of Tata Iron Steel Co. s case ( supra ) in my opinion, would not be helpful to the present respondent-company inasmuch as the liabilities of the respondent-company are not disputed and the company is making losses successively and there is no ray of hope of company overcoming the financial crisis, the crunch. 11. Admittedly, the debts are not denied. In the reply to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court is appointed as the official liquidator of the respondent-company. 12. In view of the above, the petition deserves to be granted. I therefore pass the following order: The petition is granted. The respondent-company, Fleetweld (India) Ltd. 42/43, Tapovan Society, Nizampura, Vadodara, is hereby ordered to be wound up. The official liquidator attached to this court is appointed as the official liquidator and he shall take possession of all the assets of the respondent-company with all the powers under the provisions of the Indian Companies Act, 1956. No order as to costs. 13. Mr. R.N. Shah, learned counsel for the respondent-company, prays for staying the operation of this order to enable the respondent-company to prefer the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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