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TMI Blog2016 (3) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... orters, engaged in the import and export of diverse goods including textiles. They were recognised as an export house by the Licensing Authorities while it is true that they have been importing raw materials without payment of custom duty against advance licence issued under the Duty Exemption Entitlement Certificate Scheme obliging them to discharge an export obligation, they have duly discharged the same. They have not diverted any imported goods and duty free in the domestic market. However, proceedings were initiated by the 2nd Respondent to this Writ Petition under Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992 ("FTDR Act"). That was in relation to the four advance licences, details of which are at page 6. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the Petition deserves to be dismissed. He submits that the impugned orders are of July 2008. The Petition is presented in June 2014. In law, merely because a Petition for winding up is entertained, admitted and a Provisional Liquidator is appointed does not mean that the management cannot come forward to this Court/Company Court and request that the matter before the Adjudicating Authority be directed to be prosecuted or defended by the Provisional Liquidator. Alternatively, they can seek leave of this Court and commence any proceeding or otherwise defend themselves. The company does not loose its existence and in law merely because a Provisional Liquidator is appointed. For these reasons, it is submitted that the Petition be dismiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pportunity ordinarily would not have been taken cognizance but in the facts peculiar to this case, we can take note of it. It is not as if a winding up order has presented any handicap. This was not a winding up order in the ordinary and normal mode. It was because the Petitioner company ran into financial difficulties. For some time its networth had eroded. That compelled it to make a reference to the board set up under the Sick Industrial Companies Act, 1985. The reference was pending. The reference resulted in an adverse opinion by the BIFR recommending the winding up of the Petitioner. That opinion was confirmed in Appeal and such an opinion is entertained as a petition for winding up on behalf of all creditors and then this Court proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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