KASHINATH DIKSHIT AND ANOTHER Vs. SURGICALS AND PHARMACEUTICALS COMPANY (MYSORE) LIMITED (IN LIQUIDATION)

JUDGEMENT

(1.) THE company petition is filed under Sections 391 to 394 of the Companies Act, 1956 ('Act' for short), with a request to sanction the scheme of arrangement so as to be binding on all the members, secured creditors and unsecured creditors of the respondent -company as well as the respondent -company in liquidation. The first petitioner is though a member of the company is not the propounder of the scheme. The second petitioner who seems to be the propounder of the scheme is neither the shareholder nor the creditor of the company in liquidation.

(2.) M /s. Surgical and Pharmaceuticals Company (Mysore) Limited, the company in liquidation was incorporated under the provisions of the Companies Act, 1956 and prior to its winding up by this Court by an order made on 4 -8 -1980 in Co. P. No. 35 of 1978, was carrying on the business of manufacture and sale of surgical cotton, dressing bandage cloth and gauze cloth, etc. In view of winding up order, the official liquidator attached to this Court has become the liquidator of the company by virtue of the provisions of Section 449 of the Act and has taken over the assets of the company in liquidation.

(3.) PETITIONERS assert in this petition that the company in liquidation was only indebted to State Bank of Mysore, Davangere Branch, Davangere, which was the sole secured creditor in a sum of Rs. 9,53,381/ -, approximately an amount of Rs. 3,60,000/ - to sundry creditors, and a further sum of Rs. 75,000/ - to the ex -employees of the company in terms of the claim submitted by them to the official liquidator. It is further stated that the first petitioner has identified the second petitioner to revive the company in the interest of its shareholders and creditors (both secured and unsecured) by setting the aforesaid claims arid to revive the company. It is also stated that the second petitioner is willing to settle the claims of both secured and unsecured creditors of the company in liquidation with a view to revive the company, in the event, the entire share capital of the company in liquidation is transferred to the second petitioner and his nominees.