9911796707
TMI Blog2003 (11) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... ard at the stage of admission is questioned by Bharat Petroleum Corporation Limited who is the petitioner before the Court in the Company Petition. 2. In so far as the legal position is concerned, section 557 of the Companies Act, 1956 provides in clause (a) of sub-section (1) that in all matters relating to the winding up of a company, the Court may, inter alia, have regard to the wishes of creditors or contributories of the company, as proved to it by any sufficient evidence. The words "relating to the winding up of a company," used in sub-section (1) of section 557 are broad enough to comprehend within its purview the stages of admission and of the final hearing of a Company Petition for winding up. Therefore, as a matter of statutory i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 557(1) of the Companies Act, 1956, the principle which has been laid down by the Supreme Court in the case of the workers must necessarily apply in the case of the creditors. There is an express statutory recognition of the position that this Court must have regard to the wishes of creditors and contributories in all matters relating to the winding up of a company. 5. In Madhusudan Gordhandas & Co. v. Madhu Woollen Industries (P.) Ltd. AIR 1971 SC 2600, the Supreme Court was considering a case where after a petition for winding up came to be accepted and, at the stage of admission, a large number of creditors of the company appeared to oppose the petition for winding up. A learned Single Judge of this Court refused to wind up the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... winding up order will not be made on a creditors petition if it would not benefit him or the company's creditors generally. The grounds furnished by the creditors opposing the winding up will have an important bearing on the reasonableness of the case." 6. Counsel appearing on behalf of the petitioners relied upon a judgment of a learned Single Judge of the Delhi High Court in Bipla Chemical Industries v. Shree Keshariya Investment Ltd. [1977] 47 Com. Cas. 211, T.P.S. Chawla J. was of the view that the creditors who are inclined to oppose a petition for winding up are not entitled to be heard at the stage of admission. Relying upon the provisions of Rule 96 of the Companies Rules, 1959, the learned Judge held that the creditors would be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oney to the respondent Company towards working capital facilities. The consortium consists of State Bank of India, Bank of Baroda, Canara Bank, Union Bank of India, State Bank of Indore, Corporation Bank, ABN Amro Bank N.V.,Central Bank of India, Standard Chartered Bank, Bank of India, HDFC Bank and Barclays Bank. As of 31st March, 2002, an amount of approximately Rs. 250 crores is stated to be outstanding from the company to the consortium. The outstandings of the intervenor, State Bank of India, are estimated at Rs. 79 crores exclusive of interest. Apart from this, it has been averred that a comprehensive restructuring proposal was prepared by the company and has been submitted by the Bank to the financial institutions. The State Bank of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
