(1.) The Company Application No. 2 of 1990 dated 31.1.1990 was registered, on a recommendation made by Board for Industrial and Financial Reconstruction (BIFR) under Section 20 (1) of the Sick Industrial Companies (Special Provisions)'Act 1985 (in short, the Act) to wind up M/S J.K. Satoh Agricultural Machines. Ltd. (JKSAML)-the company. The reference order is under challenge by the company in Writ Petition No. 5929 of 1990, and by J.K. Synthetics Ltd. (JKSL), the holding company, in Writ Petition No. 10976 of 1990.
(2.) 1 have heard Sri V.B. Upadhyaya, Senior Advocate and Sri Bharat Ji Agarwal, Senior Advocate assisted by Sri Piyush Agarwal for petitioners in both the writ petitions and as well as the company application.
(3.) Sri V.B. Upadhyay, Senior Counsel made a prayer that instead of winding up JKSAML, the Company on the recommendation of BIFR, the Court in the facts and circumstances of the case, may exercise its powers under Section 481 of the Companies Act 1956 and dissolve the company. He submitted that the company has paid off all its creditors, and thus the liquidation of the company after its Winding up will be an exercise in futility. On queries made by the Court about the authority of the Directors and their competence to sell off all the movable and immovable assets of the company during the pendency of the Proceedings, an adjournment was taken and that on the next date Sri bharat Ji Agarwal, Senior Advocate made submissions to allow, the writ petitions and reject the recommendations, and in the alternative to dissolve the company.