The Court granted a winding-up order for the Respondent Company after it admitted inability to pay license fees, confirmed cessation of operations, and lacked fixed assets or security.
The Company be ordered to be wound up; an Official Liquidator be appointed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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smt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
COMPANY PETITION NO. 5 OF 2012
Hallmark Cards Inc. ... Petitioners.
Versus
Vintage Cards and Creations Limited ... Respondents.
Mr. Darshan Mehta, instructed by M/s. Dhruve Liladhar & Co., for the Petitioners.
Mr. Jigar Jani, instructed by M/s. Sunil & Co., for the Respondents.
CORAM: N.M. JAMDAR, J.
DATED : 4TH OCTOBER, 2013
P. C. :
Cards, Picture Frames, Albums and have a worldwide reputation.
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payment of USD 500,000.00 to the Petitioners thereby leaving a balance sum of USD 300,000.00 payable by the Company to the Petitioners. According to the Petitioners, the Company thereafter approached the Petitioners for renewal of the said license.
Agreement for renewal of the license was executed, with following clauses.
(a) An amount of USD 21,875.00 each on or before 30.01.2010, 30.04.2010, 31.08.2010 and 31.10.2010 for the period 1st April 2008 to 31st March, 2009.
(b) An amount of USD 21,875.00 each on or before 15.11.2009, 15.02.2010, 15.05.2010, 31.01.2011 and 30.04.2011 for the period 1st April 2009 to 31st March 2010.
(c) An amount of USD 43,750.00 each on or before 15.07.2010, 15.11.2010, 15.02.2011 and 15.05.2011 for the period 1st April 2010 to 31st March 2011.”
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outstanding amount aggregating to USD 700,000.00 which the Company was required to pay to the Petitioners.
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17th January, 2011 the Respondent company itself has admitted that its financial condition is precarious. The Respondent company had stated in the said communication that they have no fixed assets. The Respondent company had accepted the liability of the Petitioner and had offered to settle the account at USD 3,00,000.00. The Petitioner had refused the offer made by the Respondent company and the Respondent company reiterated its commitment once again.
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1 issue framed by the court
Whether a winding-up order is justified when the company admits inability to pay dues, has no fixed assets, and has ceased operations.
1 provisions across 1 enactments
Hallmark Cards Inc.
Vintage Cards and Creations Limited
N.M. Jamdar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
