9911796707
TMI Blog2006 (11) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... recall application it is stated by Shri Suraj Jain, one of the directors of the company (in liquidation) that he came to know about the winding up order by communication given by the Official Liquidator dated 18-10-2000. No summons, process or notices were tendered to the company at its registered office. The company and its directors as well as the officials had no knowledge about the proceedings. The newspapers Amar Ujala published from Allahabad and Pioneer from Varanasi do not have circulation in Khalilabad, district Basti. It is stated in paragraph 9 that on account of certain adverse market circumstances the company was compelled to close down its manufacturing activities between April 1998 and December 1999. With effect from Janu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was fully eroded. 5. The BIFR rejected the reference. The matter went to AAIFR, which also rejected the appeal on 19-6-2006, on the ground that reference was barred by time. Aggrieved the petitioner filed Writ Petition No. 15932 of 2002, which was dismissed on 7-11-2006. 6. Shri Rajnath N. Shukla appearing for the Official Liquidator informs that the Official Liquidator has received information about the indebtness of the company to IFCI and that DRT, Chandigarh has decreed the claim for Rs. 16,57,99,574 (Rupees sixteen crores fifty seven lakhs ninety nine thousand five hundred and seventy four only). 7. The company has not paid anything towards liability nor has denied the liability towards petitioning creditor of Rs. 51,21,96 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove that it had adopted transparent approach by adopting due diligence and prudent method in a transparent manner in selling of its sugar plant. In fact the company had sold the sugar division to JHV Sugar Corporation and had still shown a loss of Rs. 1394.30 on sale for the period ended 30-9-1999, thereby overstating its losses for the year. In spite of directions of BIFR the company or its auditors could not give any justification for the losses, when one of the units was sold in the same year. 11. The appeal was rejected on 16-9-2006. The second reference based on audited balance-sheet as on 30-9-2000, was heard on 7-11-2002. IDBI appointed as operating agency, reported on 12-3-2003, that the company had not co-operated with them and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs before the BIFR. 15. The statement given by representative of the company also shows that it did not disclose to the Board the dues of IFCI as on 15-3-2001 and the fact that IFCI had filed a claim, which was decreed by DRT, Chandigarh. 16. It was admitted by the representative of the company in BIFR that the production of company was laying closed since 2002. In fact the production was closed much earlier. 17. The aforesaid facts clearly establish that the company is not interested in rehabilitation. It is only filing references in BIFR to seek protection from recoveries. It has not done any business for the last three years and is picking and choosing creditors for payment from the sources, which have not been disclosed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It, however, does not mean that where the company has become sick and is not making any effort for rehabilitation, may go on seeking rehabilitation only in order to avoid the evil day or with ulterior motive of removing the assets, and picking up and choosing the creditors for making payment for the purposes, which are not connected with rehabilitation of the company (in liquidation). In the present case the production is closed for the last many years. The ex-directors have not infused any fresh funds into business. Two references made to BIFR have been turned down. In the third reference the company is not co-operating with the Board for preparation of any revival plan. Infact there is no rehabilitation plan in existence and that the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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