The court granted an extension of time for a company to pay unpaid dues under a sanctioned scheme of arrangement to unsecured creditors, subject to the company's undertaking that debts will be paid forthwith if creditors approach earlier.
Extension of time to comply with the scheme granted subject to the company's recorded statement.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
COMPANY APPLICATION NO.26 OF 2009
IN
COMPANY PETITION NO.319 OF 1992
Space Age Industrial Projects Ltd. ....Applicant
V/s.
Syndicate Bank & Ors. ....Respondents
Ms.Alpana Ghone i/b Kanga & Co. for the Applicant.
Ms.Nina Kapadia i/b M/s.Pandya Gandhi & Co. for the
Respondents.
Mr.C.J. Joy for the Regional Director.
CORAM : S.J. VAZIFDAR, J.
DATED : 6TH FEBRUARY, 2009.
P.C. :
1. The Applicant seeks an extension of time to
comply with the scheme.
2. This Court had sanctioned the scheme of
arrangement and compromise with its secured and
unsecured creditors. The secured creditors have been
paid in full under the scheme in the sum of about
Rs.7.00 crores.
3. The dues of the unsecured creditors under the
scheme was Rs.15,45,000/- of which an amount to the
extent of Rs.6,12,000/- have been paid. There is
balance of about Rs.9,73,000/- payable to the
: 2 :
unsecured creditors. Thus for these unpaid dues, the
extension is sought.
4. The acknowledgement from Respondent No.7 has
not been received. However, Respondent No.7 has been
paid its dues in full without raising any objection.
5. Ms.Ghone, the learned counsel appearing on
behalf of the Applicant states that there is a decree
in favour of Vishakhapattam Port Trust in the sum of
Rs.2.00 crores. The extension does not prejudice the
decreeholder as in any event the amounts payable to
the creditors are less than the amounts due to them.
The extension can only be to the benefit of the
decreeholder. The extension has been sought upto
31.3.2010. The company has funds. The longer period
is required only for the purpose of tracing the
creditors and making payment to them. The company has
stated that if any of these creditors approach the
company earlier, their dues will be paid forthwith.
The statement is accepted.
6. In the circumstances, the Company Application
is made absolute in terms of prayer (a) subject to the
statement of the company recorded above and accepted
by the Court.
Space Age Industrial Projects Ltd.
Syndicate Bank & Ors.
S.J. VAZIFDAR
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court