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TMI Blog2008 (5) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... this proceeding and pursue the same so as to book the real culprit. Subject to the aforesaid this petition is accordingly disposed of. Official liquidator attached to this court is hereby appointed as liquidator of the company and is directed to exercise all powers conferred on him in the Act. He will take charge of the assets of the company and issue necessary notices for compliance of the provision under section 454 of the Companies Act, 1956, for filing statement of affairs of the company. A compliance report be filed before the court within a period of three months from today. X X X X Extracts X X X X X X X X Extracts X X X X ..... for bona fide purpose or just to avoid the financial responsibility or accountability of the company. The court further observed that even if the proceedings are considered for bona fide purpose, then also the question may be required to be considered for the genuineness of the ground alleged for winding up. The court, therefore, directed to join the State of Gujarat to be served through the Secretary, Industries and Mines Department as party respondent. The court, thereafter, passed further order on April 10, 2008, directing the petitioner to place on record the list of persons who are in the management and/or who are members of the board of directors after August 16, 1999, till this date. The petitioner-Corporation was further directed to furnish list of debtors, from whom the recovery could not be enforced by the petitioner-Corporation. While furnishing this list of debtors the details regarding the names and addresses* of the outstanding amount and proceedings, if any, taken against them should also be placed on record. The court further directed to place on record the details as to whether any action is taken by the State Government against any of the officers of the Corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese managing directors and their respective period of holding the position of the managing director of GSIC were given in the said affidavit. It is further submitted that the preliminary inquiry was made in 2004 by General Administration Department. On the basis of the preliminary inquiry State Government has initiated Departmental inquiries against these officers and they were charge sheeted by G. A. D. on June 10, 2005. Considering the defence statements of these officials, Government ordered inquiring authority on December 22, 2005 and inquiry report from the inquiring authority is awaited. With regard to the explanation called for by the court in its order dated April 30, ,2008, regarding liability of the State Government towards co operative banks and other investors it is submitted that Special Civil Application No. 7573 of 1999 was filed by Marketyard Commercial Co-operative Bank Ltd., and other twenty Special Civil Applications of similar nature (i.e.. Special Civil Application Nos. 9712 of 1999, 8794 of 1999, 8421 of 8667 of 1999, 8666 of 1999, 10966 of 2000, 10349 of 2000, 9878 of 8066 of 2000, 9222 of 2000, 9150 of 2000, 9874 of 2000, 7378 of 2000, 13430 of 2003, 9971 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne more chance was given for voluntary retirement scheme to the remaining 7 employees to apply for VRS. In response to which 2 employees opted for VRS. Accordingly, GSIC paid Rs. 11,74,45,499 against VRS and out of this, Rs. 10,64,27,741 was paid by the State Government as secured loan. The GSIC has relieved 321 employees under VRS till date of this petition. Now only 5 employees/officers are working on regular basis. The board of directors have considered to introduce VRS for them. Necessary due procedure is initiated in this regard. The petitioner-company has yet to make payment of Rs. 14,05,37,120 including interest as on March 31, 2006, to the State Government which through State Renewal Fund, provided funds for VRS as secured loan. Mr. Gandhi has further submitted that various financial institutions and subscribers to the bonds issued by the petitioner-company filed cases for repayment of their loan/bonds before DRT/city civil court. Many of the bondholders had gone to this court. In the meantime, DRT and city civil court have passed decrees against the petitioner for the repayment of loans/bonds and the total amount of which exceeds Rs. 50 crores. He has further submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society. They have filed their respective affidavits. Considering the submissions made by the learned advocates and after going through the affidavits and counter affidavits filed before the court and also after considering various reports and documents filed by the parties, the court is of the view that the petitioner-company is required to be wound up. There is a huge liability which the petitioner-company is not in a position to discharge. The financial substratum of the company is gone down. The business activities of the company have been discontinued since 1999 and almost all employees have been relieved under the scheme of voluntary retirement. There are several orders and decrees passed by the DRT/city civil court against the petitioner-company. In this view of the matter, no useful purpose will be served to allow the company to remain in existence. So far as inquiry conducted by this court during the pendency of this petition is concerned, enough materials have come on record that necessary proceedings have been initiated by the State Government and even otherwise once winding up order is passed the official liquidator may be put in charge of the affairs of the company ..... X X X X Extracts X X X X X X X X Extracts X X X X
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