RAJIV COTTON TRADERS Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) ONE April 14, 1986, in Company petition No. 68 of 1985, Kamla Spinning and Manufacturing Mills Private Limited was ordered to be wound up under the provisions of the Companies Act, 1956. The official liquidator was appointed as liquidator of the company. By order dated march 27, 1989, passed in Company Application No. 173 of 1988, Gujarat Technical Consultancy Organisation Limited (GTCO) was appointed as a valuer to assess the value of the assets and properties of the above company and also to prepare an inventory. GTCO submitted a valuation report dated May 24, 1989, showing the total value of the land, buildings and other civil construction, office furniture, office equipment and miscellaneous scrap, stores items, plant and machinery and excess stock at Rs. 2,00,23,975.

(2.) AFTER the receipt of the report on August 2, 1989, this court (A. S. Qureshi J.) directed the official liquidator to invite offers for taking over the assets of the company on lease with a view to re -start it and run it on a regular basis so as to generate employment for the workers who have been out of job for several years. At that time, the court took into consideration the fact that, in the interest of the company in liquidation as well as of the creditors and the workers, a party which is ready and willing to take the mill company on leave and licence for re -starting and who is in a position to invest money and is having expertise to re -start may apply. Thereafter, the matter was adjourned from time to time. On October 25, 1989, the offers received were considered and it was decided to give a fresh advertisement for inviting fresh offers with certain modifications, as stated in the said orders. After the fresh advertisement, five offers were received by the official liquidator. Out of the five offerors, three offerors had withdrawn their offers. During that time, one of the offerors, Neptune Trading Co., has sponsored a scheme of compromise and/or arrangement between Kamla Spinning and . and its creditors and employees and the State of Gujarat through the petitioner, Rajiv Cotton Traders, by filing Company Application No. 218 of 1990 in Company Petition No. 68 of 1985. Prior to that application, Arvind Mills Limited, Ahmedabad, had also filed Company Application No. 272 of 1989 and has submitted a proposed scheme of arrangement. However, that application was withdrawn in view of the scheme tendered by Rajiv Cotton Traders.

(3.) THE detailed report is submitted by the chairman. The following are the conclusions :