9911796707
TMI Blog2007 (6) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is just and equitable that the company be wound up. 2. The first respondent was incorporated on 14-4-1988 with an authorized capital of Rs. 20 lakhs. The second and third respondents were the first directors of the Company. On 29-6-1988 the first, second, third and fourth petitioners were appointed as additional directors. The first respondent purchased a Lithotripter Machine in March 1989 which was acquired overseas. The Bank of India which is the fifth respondent sanctioned a loan of Rs. 1.84 crores to the Company on 7-4-1989 as a demand bridge loan. An additional working capital facility in the amount of Rs. 20 lakhs and an import L/C facility in the amount of Rs. 1.70 crores were also extended inter alia , in order to acqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to seek reliefs of winding up. The application for amendment was allowed on 27-10-1993. On 10-7-1995 the Official Liquidator came to be appointed as Provisional Liquidator. The order dated 10-7-1995 was carried in appeal. The appeal was dismissed in default on 18-7-2005 and the Petition was thereafter advertised. 4. At this stage, it would be necessary to advert to certain grants which have taken place in a suit instituted by the Bank of India, inasmuch as they are germane to the present proceedings. The Bank instituted a suit before this Court on 15-1-1992 against the Company, the second and third respondents and petitioners 1 to 4 for the recovery of its dues. On 24-1-1992 an ad interim order was passed by which the Court Recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition that the second and third respondents are holders of 56 per cent of the total issued and paid-up share capital and have been responsible for the management of the Company. The petitioners who hold 43 per cent of the equity capital have instituted the Petition in their capacity as contributories under section 439(1)( c ) of the Companies Act, 1956. Though appointed as additional directors in June 1988 petitioners 1 to 4 are stated to have been ousted from the management since 1990. Now insofar as the financial position of the Company is concerned, it is undisputed that the Bank which had sanctioned a loan of Rs. 1.84 crores as a demand bridge loan together with a working capital limit of Rs. 20 lakhs and L/C facility of Rs. 1.70 crore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t necessary for the Court to enter a finding on the contention of the petitioners that the acquisition and use of the Lithotripter Machine formed the substratum of the business of the Company. Even if it did not, the fact remains that on 14-11-1994 this Court ordered the Court Receiver to forcibly take possession of the flats and the machine for the purposes of the sale. The Court has been informed that the machine could not eventually be sold since it has been reduced to scrap. The fact that the company has been continuously running into losses since inception has not been denied. According to the petitioners a search report dated 6-3-2007 has revealed that the Company has not filed any report after 1995. This position has not been dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ixtures etc. of the first respondent. Prayer clause ( b ) also seeks a direction that the Liquidator shall stand appointed in respect of four flats bearing Nos. 201 to 204 in Palm Spring Co-operative Housing Society Limited, Lokhandwala Complex, Andheri (West), Mumbai 400 058. At the present stage, it would not be appropriate for this Court to pass any direction in regard to the flats since it would be open to respondents 1 to 3 to produce necessary documents of title in respect of the flats in question. Respondents 1 to 3 shall do so within a period of three weeks from today. The Liquidator shall after duly scrutinizing such documents as may be produced by the first, second and third respondents take necessary action in accordance with law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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