V B PUROHIT Vs. GADAG AND JAMBDKESHWARA LQRS

JUDGEMENT

(1.) This is an application under S. 466 of the Companies Act, 1956, read with S. 518 thereof. The applicant is a share holder of M/s. Nagargali Cement Company Ltd. The said Company was incorporated on 11-4-1963 and it has its registered office at Vidyanagar, Hubli.

(2.) The authorised share capital of the Company is Rs. 1 crore divided into 10 lakhs equity shares of Rs. 10 each. The subscribed capital of the Company is Rs. 3,80,280 though only a sum of 76,056 equity shares have been issued. But the call made so far being only in the sum of Rs. 5. The subscribed capital which is only half the value of the subscribed capi of Rs. 72,292 was treated as allotment money and is stated to be due from the shareholders other than the Directors of the Company. Thus the subscribed capital of the Company is only Rs. 3,07,988.

(3.) The Company in 1966 acquired the lease of limestone quarry in an extent of 255 acres of land from the Government. This was with the object of carrying out the main objects of the Company and establish a Cement factory. The applicant was not able to get the necessary finances in spite of the best efforts of the Directors and therefore at the general body meeting held on 8-3-1980 the Company moved for voluntary winding up the Company. The resolution was passed at that meeting. The resolution was to the following effect. "Resolved that the Company be wound up voluntarily". The same meeting resolved to appoint M/s. Gadag and Jambukeswara, Chartered Accountants, Hubli, as the Liquidators. The Company had no other assets than the mining lease and the office furniture. The office furniture has since been sold by the Liquidator and all the creditors have been paid. It has been asserted by the applicant that the voluntary winding up has reached only this stage and no more.