MODI RUBBER LIMITED Vs. MADURA COATS

JUDGEMENT

(1.) This special appeal has been filed against the impugned order of the learned Single Judge dated 12.3.2004 in Company Petition No. 1 of 2002 Modi Rubber Limited v. Madura Coats Limited. An impleadment application has been filed on behalf of Phillips Carbon Black Limited which we have allowed.

(2.) We have heard the learned counsel for the parties and have perused the record.

(3.) The facts of the case are given in some detail in the impugned order dated 12 3.2004 It appears that a bunch of creditors' petitions were filed in this Court praying for winding up of M/s Modi Rubber Limited on the ground that the said company is unable to pay its huge debts. On 13.3.2002 the Court passed an order giving its prima facie finding that the respondent company was unable to pay its debts and injuncted the respondent company from dealing with or encumbering any of its assets without seeking prior permission of the Court. Thereafter by order dated 17.5.2002 it was held by the Court that there was a liability of Rs. 3,22,91,636/- admitted by M/s Modi Rubber Limited. On 21.5.2002 the Court again recorded a finding that the company was unable to pay its debts. Hence the petition was admitted and a direction was given to issue an advertisement under Rule 24 of the Rules.