The Company Court made an order winding up M/s.Gaekwar Mills Limited. This was based on the B.I.F.R.'s recommendation that revival was impossible due to eroded net worth and the dismissal of the respondent's appeal. Additionally, the court made absolute the winding-up petition filed by a creditor.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
COMPANY PETITION NO.735 OF 2004
IN
B.I.F.R. CASE NO.57 OF 1987
B.I.F.R. Petitioner
Vs.
M/s.Gaekwar Mills Limited Respondent
WITH
COMPANY PETITION NO.228 OF 1987
Jaysunth Dye Chem. Pvt.Ltd. Petitioner
versus
Gaikwar Mills Limited Respondent
Mr.Akbar Rizvi i/by Mulla & Mulla & CBC for
petitioner.
Mrs.S.N.Bhagwat for The Majoor Mahajan Sangh.
CORAM : A.M.KHANWILKAR, J.
DATE : 04th February 2008
PC :
1. The B.I.F.R. by its order dated 21st January
2003, after evaluating the materials before it,
was of the view that there was no possibility of
reviving the respondent company as the net worth
of the respondent company has totally eroded. In
this backdrop the BIFR recommended winding-up of
the respondent company. Indeed, the said order
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was carried in appeal. However, it is seen that
the said appeal has been finally decided on 16th
April 2001. In view of dismissal of the appeal
preferred by the respondent company, the
recommendation of B.I.F.R. to wind-up the
respondent company, stands confirmed.
2. This company petition has been entertained by
the Company Court suo-motu on the basis of
recommendation made by the B.I.F.R.. Besides the
present suo-motu petition, there is another
petition pending in this Court against the
respondent company praying for winding-up of the
respondent company being Company Petition No.228
of 1987. The said petition is founded on the
claim that the petitioner therein had sold,
delivered and supplied goods to the respondent
company and the respondent company was indebted
to the petitioners therein to the extent of
Rs.1,56,409=63 Ps. and interest accrued thereon
being Rs.26,436=87 Ps. aggregating to
Rs.1,82,846=50 Ps.. Out of the said amount, the
respondent company made payment to the petitioner
therein to the extent of Rs.59,794=82 Ps. only.
The respondent company, in spite of repeated
requests made by the petitioners therein, having
failed to pay the outstanding dues, the
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petitioners issued statutory notice on 25th
January 1985 followed by communications dated
20th August 1985 and 5th September 1986.
3. In spite of the statutory notice, the
respondent failed and neglected to pay the
outstanding dues. There is nothing on record to
even remotely suggest that the respondent had
raised dispute regarding quality, quantity or
price of the goods supplied by the petitioners
therein. It necessarily follows that the
respondent company is unable to pay its debt.
The respondent company has not bothered even to
file reply affidavit to controvert the assertions
made in the Company Petition No.228 of 1987.
4. Insofar as the former suo-motu petition is
concerned, this Court admitted the same on 14th
October 2004 and has been pending in this Court.
There is nothing on record to suggest that the
respondent has taken any steps for revival of the
company. As there is no likelihood of revival of
the respondent company and as the net worth of
the respondent company having completely eroded,
as is rightly opined by the B.I.F.R., which
opinion I am in agreement with, for that reason
the inevitable conclusion is to direct winding-up
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of the respondent company.
5. In the circumstances, Company Petition No.228
of 1987 is made absolute in terms of prayer
clauses (a) and (b). As far as Company Petition
No.735 of 2004 is concerned, no further and
separate orders are required therein in view of
the disposal of the cognate company petition
being Company Petition No.228 of 1987.
(A.M.KHANWILKAR, J.)
3 provisions across 3 enactments
B.I.F.R.
M/s.Gaekwar Mills Limited
Jaysunth Dye Chem. Pvt.Ltd.
A.M.KHANWILKAR
As recorded by the court registry
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