Allowed

M/S Nakshatra Developers Bangalore Pvt. Ltd. v. the Registrar of Companies

Karnataka HC8 Jan 2013CA/596/2012

Case brief

AI extract

What is this about?

This company application was filed by a debtor company under the Fast Track Exit Scheme 2011 to withdraw a voluntary winding up order and change its status to active in the company records. The Registrar objected due to insufficient bank balance to pay creditors, but the Court dismissed the objection based on the stated absence of debts and allowed the change of status.

What did the court decide?

The applicant company is permitted to take the benefit of the Fast Track Exit Scheme 2011 and the respondent is directed to show the status of the company as Active.

M/S Nakshatra Developers Bangalore Pvt. Ltd. Vs… — Insolvency and Bankruptcy | Karnataka HC (2013)

¶1

¶2

IN THE HIGH COURT OF KARNATAKA AT BANGALORE

¶3

DATED THIS THE 08TH DAY OF JANUARY 2013

¶4

BEFORE

¶5

THE HON'BLE MR. JUSTICE L.NARAYANA SWAMY

¶6

COMPANY APPLICATION No.596/2012

¶7

BETWEEN :

¶8

M/S NAKSHATRA DEVELOPERS BANGALORE PVT LTD HAVING ITS REGISTERED OFFICE AT 46, MAYURA NIVAS IST FLOOR 4TH MAIN, 3RD CROSS CHAMARAJPET BANGALORE 18

¶9

...APPLICANT

¶10

( BY SRI. S VIVEKANANDA, ADV., FOR M/S VG B ASSOCIATES, ADV. )

¶11

AND :

¶12

THE REGISTRAR OF COMPANIES E WING 2ND FLOOR KENDRIYA SADANA KORAMANGALA BANGALORE 34

¶13

...RESPONDENT

¶14

( BY SRI. H JAYAKARSHETTY ADV., FOR R1 )

¶15

THIS COMPANY APPLICATION IS FILED UNDER RULE 6 AND 9 OF THE COMPANIES (COURT) RULES, 1959 READ WITH SECTION 151 OF THE CPC, PRAYING TO DIRECT TEHR ESPONDENT TO CHANGE THE STATUS OF THE APPLICANT COMPANY FROM 'UNDER LIQUIDATION' TO

¶16

¶17

ACTIVE IN THE RECORDS AND MASTER DATEA OF THE RESPONDENT IN VIEW OF THE RESOLUTION DATED 31.01.2012 PASSED BY THE SHAREHOLDERS OF THE APPLICANT COMPANY WITHDRAWING THE EARLIER RESOLUTION DATED 30.12.2010 FOR VOLUNTARY WINDING UP OF APPLICANT COMPANY AND TO PASS SUCH OTHER APPROPRIATE ORDERS.

¶18

THIS APPLICATION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

¶19

ORDER

¶20

This application is filed under Rules 6 and 9 of the Companies (Court)Rules, 1959 read with Section 151 of CPC for direction to the respondent to consider the resolution passed in the Extra Ordinary General Meeting dated 31.01.2012 and show the status of the applicant company in its Master Data as “Active”.

¶21

The learned counsel submits that the Board of Directors of the company passed a resolution dated 30.12.2010 for voluntary winding up of the applicant company. It is further stated that company had no preferential shareholders, debtors secured or unsecured creditors and no workmen or employees in the applicant company. When the proceedings as per Annexure-D, resolution for voluntary winding up scheme has been

¶22

¶23

lodged under Fast Track Exit Scheme 2011, in which the company of this nature would get the benefit under Sec.560 of Companies Act. The Competent Authority under Section 560 of the Companies Act has to strike off the this applicant company.

¶24

The learned counsel for the respondent has filed statement of objections and verifying affidavit. He has stated that on verification, it discloses that the bank balance of the petitioner company is to the tune of Rs.7,52,237/-, as against the same the current liabilities and provisions to the extent of Rs.31,72,731/-. Under these circumstances, if the applicant is permitted to avail Exist Scheme and voluntary winding up it has no bank balance to pay to the creditors. Hence, the application made by the petitioner be rejected.

¶25

I have heard the learned counsel appearing for

¶26

both sides.

¶27

The applicant has stated in the application that

¶28

¶29

it has no secured or unsecured creditors and continue its business as per Annexure-D. Pursuant Section 484(b) of Companies Act, the scheme has been made for voluntary winding up proceeding for voluntary winding under the scheme of Fast Track Exist Scheme 2011. When the position of the company is not greater and all such defunct companies get the benefit secured under Annexure-F. Objection of the respondent that the bank balance is not sufficient for winding up, cannot be sustained, since the statement of the applicant is that it has no debtors secured and unsecured creditors. Under these circumstances, the application is allowed. The applicant company is permitted

¶30

to take the benefit of the scheme as per Annexure-F Fast Track Exit Scheme 2011 and the respondent is directed to show the status of the company as Active.

¶31

SD/JUDGE

¶32

Rms

M/S Nakshatra Developers Bangalore Pvt. Ltd. v. the Registrar of Companies

Case brief

What is this about?

What did the court decide?

M/S Nakshatra Developers Bangalore Pvt. Ltd. v. the Registrar of Companies

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Official Liquidator of Vs Sri.Narayanaswamy N

Official Liquidator of M/S Bangalore Cement Vs Sri Venkataramaiah B T

Sixth Energy Technologies Pvt. Limited Vs Pace Power Systems Pvt. Limited

Sri Hitendra Kumar Vs Official Liquidator

M/S.Southern Steels and Forgings Vs M/S.Brindavan Alloys Limited

Sri Monappa Gowda S/O Late Sankappa Gowda Vs Ishwara Gowda S/O Aithappa Gowda