IN RE : SIDDHPUR MILLS CO. LTD. Vs. STATE

JUDGEMENT

(1.) The applicant company has taken out this summons for direction as to whether the applicant company should recognise the transfer of various shares of Siddhpur Mills Co. Ltd. as particularly described in the schedule annexed as annexure "B" to the affidavit in support of the judge's summons, and for other consequential reliefs. It should be recalled that directions have been sought by the applicant company in respect of about 1,421 transfer applications by different parties seeking to transfer in all 7,396 shares of Siddhpur Mills Co. Ltd.

(2.) By the order of this court of July 30, 1982, the official liquidator was directed to submit his report stating his recommendations with reasons in support thereof in respect of each such impugned transaction after inquiring as specified in the directions issued by the aforesaid order. Accordingly, the official liquidator has submitted his report on May 16, 1983. The official liquidator has, in this report, raised objection only in respect of four transfer applications each of which is dated March 22, 1982, in favour of four investment companies viz., (1) Harit Investment Co. P. Ltd., (2) Haren Investment Co. (P.) Ltd., (3) Krishna Kumar Investment Co. Pvt. Ltd., and (4) Gokulesh Investment Co. (P.) Ltd., for 1,000 shares each. As regards the other transfer applications, the official liquidator has not raised any objection and has not sought to impugn the said transactions. In this state of affairs, by the order of this court of September 21, 1984, the applicant company was permitted to register the transfers according to the transfer applications other than the aforesaid four impugned transfers as prescribed in annexure "B" to the affidavit in support of the summons.

(3.) In respect of the impugned four transactions, affidavit of Shri Haren K. Mehta dated August 29, 1984, has been filed on behalf of the four investment companies. In the course of the hearing of the objections raised by the official liquidator against these four transactions, it was suggested by the court to learned counsel appearing for the transferee companies that an additional affidavit may be filed of the person conversant with the facts of the case as to what were the ruling prices in the relevant period of the equity shares of Bharat Vijay Mills and New Gujarat Cotton Mills Ltd., which had also moved their scheme in respect of taking over of the Siddhpur Mills Co. Ltd., and which applications were pending before and under consideration of this court. It should be recalled that Bharat Vijay Mills and New Gujarat Cotton Mills had moved their application somewhere in the month of May 1979, while the Reliance Textile Industries had moved its application somewhere in August, 1979. Accordingly, the additional affidavit of Shri Haren K. Mehta, dated January 25, 1985, has been filed showing as to what was the market price of the shares in the relevant period, that is, March, 1979, to December, 1979. It should also be recalled that this court has by its order of May 14, 1981, sanctioned the scheme moved by the Reliance Textile Industries by Company Petition No. 81 of 1979 and the scheme was made operative under the said order from July 1, 1981.