9911796707
TMI Blog2004 (4) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... the company. Subsequently, an application A-36 was filed by the company through its promoters and also by the new investors praying therein that the winding up order dated 16-8-1999 be recalled. In the application it was alleged that the company had made certain arrange- ments with the unsecured creditors as well as with the secured creditors to pay all their debts in a phased manner. On the said application, notices were issued to the secured creditors inviting their objections. The secured creditors appeared before the Court and did not oppose the revival of the company and submitted that the proposal for the settlement and reschedulement of the dues of the company was under consideration. This Court passed an order dated 10-8-2000 under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficial Liquidator be directed to take the possession of the assets and the properties of the Company and proceed further in accordance with the law as per the winding up order passed by this Court. 4. This Court vide order dated 24-2-2003 issued notices to the company, the promoters and the new investors to explain and prove whether they have or have not honoured the commitments made by them and further show cause why the order dated 10-8-2000 is not recalled. 5. In response to the issuance of the aforesaid notices, the respondent- company and its promoters, etc., appeared and filed a reply dated 11-3-2003 stating therein that the new investors had brought in Rs. 5.10 crores approximately out of which the company had paid a sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1.26 crores had been paid by the company to the Syndicate Bank, but after 1-5-2001 not a single paisa has been paid. Not only this, further dues have accrued upon the Syndicate Bank to the extent of Rs. 4 crores due to the payment of the invocation of foreign bank guarantees and therefore the present outstanding amount has increased to Rs. 13.26 crores. The Syndicate Bank stated that the company is not honouring the settlement and for the last two years they have done nothing to make the payments. 8. This Court by an order dated 28-1-2004 granted two weeks time to the learned counsel appearing for the company to seek instructions in the matter and show its bona fides by making some substantial payment during the period when the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its filed by the company clearly shows that the company is not interested in repaying the debts of the secured creditors and are only interested in lingering the matter for vested reasons. In spite of time being granted by this Court directing the respondents-company to make substantial payment in order to show their bona fides , the company has failed to make any fresh payment. Thus the bona fides of the respondent-company is doubtful. From the affidavits filed by the respondent-company, it is further clear that the new investors are not bringing any further investments in the company. It is, therefore, clear that the discretion exercised by this Court under section 466 of the Companies Act has been misused by the Company and no further ..... X X X X Extracts X X X X X X X X Extracts X X X X
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