PRASAD MILLS LTD. Vs. PARIKH AGENCIES

JUDGEMENT

(1.) THIS is an application under section 536(2) of the Companies Act, 1956, by Prasad Mills Ltd., which is sought to be would up, for allowing the applicant company to enter into transactions by creating charge over the movable and/or immovable properties of the company for the purpose of borrowings/advances/credit limits and facilities to be given by the State Bank of India, Commercial Branch, Ahmedabad, and the Industries Development Bank of India for the purpose of meeting the obligations of the company and for the purpose of keeping the business of company going on. It is prayed in the said application that the said transactions be declared as authorised, valid and binding on the company and the petitioning creditor under section 536(2) of the Companies Act.

(2.) SECTION 536(2) of the Companies Act, 1956, reads as under : '536(2). In the case of a winding -up by or subject to the supervision of the court, any disposition of the property (including actionable claims) of the company, and any transfer of shares in the company or alteration in the status of its members, made after the commencement of the winding -up shall, unless the court otherwise orders, be void.'

(3.) DUE to financial stringency, the applicant -company had to close down its textile unit with effect from January 12, 1984. Thereupon, the Textile Labour Association filed an application in the Labour Court at Ahmedabad, under the Payment of Wages Act. In the said application, the Labour Court passed an order of attachment of movable as well as immovable properties of the applicant company to secure wages payable to the company, namely, M/s. Parikh Agency, moved this court by filing a winding -up petition being Company Petition No. 20 of 1984 (sic). In the said petition, this court passed an order as under : 'Notice to the company returnable on February 22, 1984, Ad interim relief in terms of para 8(c) granted till further orders.'