JAYMAN R SHAH Vs. CHIME ELECTRONICS LIMITED

JUDGEMENT

(1.) THE petitioner Shri Jayman R. Shah, Proprietor of S. J. Shah and Company has filed this petition under Section 433 read with Section 434 of the Companies Act, 1956 praying that the respondent Chime Electronics Limited be ordered to be wound up under the provisions of the Companies Act and this Court may appoint Official Liquidator attached to this Court as Official Liquidator of Chime Electronics Limited. It is also prayed that the Official Liquidator attached to this Court also be appointed as Provisional Liquidator of the said Company and he may be directed to take over possession of assets and affairs of the company pending this petition. But when the Court has decided to hear the petition finally, there is no need to pass any such interim order.

(2.) WHEN this petition was listed for admission hearing in the month of June, 2007, the Court decided to issue notice vide order dated 19th June, 2007 making it returnable on 23rd July, 2007. Even after service, nobody cared to appear and resist the admission of the petition. Therefore, the Court, vide order dated 13th December, 2007 admitted the petition. It would be beneficial to reproduce relevant part of the order of admission, because, it indirectly supports the contention of the petitioner that the respondent company is willful defaulter of the debts as per the scheme of the Companies Act. " Considering the averments made in the petition as well as after having heard Mr. Jashani, learned advocate appearing for the petitioner, the Court is of the view that the petition deserves to be admitted. It is accordingly ADMITTED. The order of admission is naturally followed by order of advertisement. However, order of admission is passed in absence of the learned advocate appearing for the respondent Company and advertisement order will have serious repercussion on the respondent Company. Before such order is passed one more opportunity is given to the respondent Company and it is made clear that on the next date if nobody appears on behalf of the respondent Company, the order of advertisement will be passed in the matter. "

(3.) THE day on which the petition came to be admitted, the Court did not pass orders for publication of advertisement. This was nothing but an indirect opportunity to the respondent so that the respondent company can appear and make necessary submission and avoid future complications. The respondent could have appeared and satisfied the Court that the winding up petition may perhaps fail and therefore, no public advertisement be issued about admission of the winding up petition. But for want of appearance and representation on the part of the respondent Company, the Court ordered publication of advertisement in two newspapers; one in Indian Express [english language] and another in Sandesh [gujarati], both of Ahmedabad Edition, fixing the date of final hearing on 31st January, 2008.