IN RE Vs. SH. VINOD KUMAR JAIN

JUDGEMENT

(1.) THESE contempt proceedings arise from an order of this Court dated 02.02.2011 passed in Co.Pet. 115/1991 in the matter of Elephanta Oil & Vanaspati Industries Ltd., by which this Court took suo moto cognizance of the certain accusations made against Mr. Vinod Kumar Jain (hereinafter "the contemnor").

(2.) BEFORE addressing the charge of contempt, a background of the facts that led to the accusation and the charge is important. Mr. Jain was the Director of Elephanta Oil & Vanaspati Industries Ltd. (hereinafter "the company"), a private limited company incorporated on 24th October, 1969, (though subsequently converted into a Public Limited Company from 29th May, 1970) for the setting up of a project for manufacture of Hydrogenated Vegetable Oils (Vanaspati) and Refined Oils, with an installed capacity of 50 TPD, located in the outskirts of Ghaziabad, Uttar Pradesh. While the company performed well till 1980, its performance deteriorated sharply during the year 1981, as it also started to incur losses. This eventually led to the suspension of manufacturing activities from October, 1983.

(3.) THE company's secured creditors (and mortgagee of the companies' properties bearing No. A1, A3 & A3/1, Industrial Area, Meerut Road, Ghaziabad, UP, hereafter "the Ghaziabad property") filed two recovery suits against the company in liquidation: the first being Suit No. 2147/1986 for recovery of Rs.4,50,76,141.84/ - with interest and costs, filed on the file of this Court and later transferred to the Debt Recovery Tribunal, Delhi (registered as OA No. 341/1995), and the second, Suit No. 2194/1986 for recovery of Rs.8,16,58,516.84/ - with interest and costs, again filed on the file of this Court and later transferred to the Debt Recovery Tribunal, Delhi (registered as OA No. 1250/1995).