The High Court allowed a winding-up petition filed by Canara Bank against Micro Technologies (India) Limited, finding the Company commercially insolvent for failing to pay redemption amounts on commercial papers.
Order that the Respondent be wound up; appointment of Official Liquidator.
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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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY PETITION NO. 190 OF 2013
Canara Bank … Petitioner
Versus
Micro Technologies (India) Limited
… Respondent
Mr. Swapan Saudani a/w. Ms. Manika Parikh i/b. Dave and Girish & Company for the Petitioner. None for the Respondent.
CORAM : S.J. KATHAWALLA, J. DATE : 8 TH OCTOBER, 2014
P.C. :
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made to the Petitioner to subscribe to the commercial paper issued by the Company. The letter of offer and the deal confirmation/contract note dated 17th February, 2012, inter alia stipulated as follows:
(i) The commercial paper was issued by the Company in favour of the Petitioner;
(ii) the issue size or the maturity value of the commercial paper issued to the Petitioner was of Rs. 15,00,00,000/( Rupees Fifteen crores only)
(“Redemption Amount” or “Maturity value”);
(iii) The tenure of the contract note was for a period of 178 days;
(iv) The date of contract was February 17, 2012 and the value date of the same was February 21, 2012;
(v) The due date or the maturity date of the commercial paper was August 17, 2012;
(vi) The discounted value of the instrument was Rs. 14,10,57,300/;
(vii) The price was Rs. 94,0382/;
(viii) The discount rate was 13.00% p.a.;
(ix) the issuing and paying agent is HDFC Bank Limited, Kanjur Marg (East), Mumbai;
(x) The credit rating of the commercial papers was A1, granted by CARE Limited; and
(xi) The date of rating was January 6, 2012, and the validity of the said rating is upto January 5, 2013.
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was finally presented by the Petitioner for encashment which too was returned dishonoured by the Company's Bank on 5th September, 2012.
“7. From the aforestated facts I am satisfied that sum of Rs. 15,90,61,646 alongwith interest thereon as claimed by the Petitioner is due and payable to them by the Company. However, the Company has failed and neglected to pay the same to the Petitioner. I am therefore also satisfied that the
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Company is unable to pay its debts and is commercially insolvent. The Company has not responded to the statutory notice or to the petition. The statements/allegations made in the petition have remained uncontroverted.......”
“(a) That this Hon'ble Court be pleased to order that the Respondent be wound up under the provisions of the Act”.
The Official Liquidator, High Court, Bombay is appointed Liquidator of the Respondent Company. The Official Liquidator shall forthwith take charge of the assets / properties and records of the Respondent Company. The Official Liquidator to forthwith act on an ordinary copy of this order, duly authenticated by the learned Associate of this Court without waiting for any further notification.
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( S.J.KATHAWALLA, J. )
1 issue framed by the court
Whether the respondent Company was commercially insolvent and unable to pay its deemed debts to the petitioner.
1 provisions across 1 enactments
Canara Bank
Micro Technologies (India) Limited
S.J. KATHAWALLA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
