RAMESHBHAI RAMANLAL PATEL Vs. BANSIDHAR PVT LTD

JUDGEMENT

(1.) The petitioners have filed this petition under Section 433 (f) of the Companies Act, 1956 on the ground that it is just and equitable that the respondent Company be wound up.

(2.) It is the case of the petitioners that the substratum of the respondent Company is totally lost and its losses far outweighed its capital and its share capital was completely wiped out. It is also the case of the petitioners that the respondent Company was not carrying on any business for which it was formed and registered. There are no prospects of its carrying on any business in near future or even distant future. The respondent Company cannot carry on any business except at a loss. The carrying on of the warehousing business is only a stop gap business even as per the say of the respondent Company. The respondent Company is in insolvent circumstances and cannot pay its debts as and when they become due and payable. The respondent Company does not have any free assets worth the name which can be disposed off for the purpose of carrying on its business.

(3.) Mr. Ashwin L. Shah, learned advocate appearing for the petitioners has submitted that the respondent Company was originally before the B.I.F.R. and the scheme was framed and as per the said Scheme, the respondent Company was permitted to sell some of its fixed assets to enable it to generate revenue so that it was able to start its business of textile processing. A part of the sale proceeds was required to be deposited by the Company with the State Bank of India in respect of the guarantee given by the Company to the said Bank for the advances made by it to Shree Bansidhar Spg. and Weaving Mills Private Limited, a sister concern of the Company. However, the Company has committed default in complying with the order of B.I.F.R. by not depositing Rs. 53.52 Lakhs being the required amount with the said Bank. The Company had given the said guarantee to the said Bank in the year 1982 for the sum of Rs. 4 Crores and the said sister-concern has gone into liquidation in 1996 and the said liquidation is not yet over.