BOMBAY METROPOLITAN TRANSPORT CORPORATION LTD Vs. EMPLOYEES OF BOMBAY METROPOLITAN TRANSPORT CORPORATION LTD

JUDGEMENT

(1.) THIS is an appeal against the dismissal of the winding-up petition filed by the company itself under the provisions of section 433 (a), (e) and (f) of the Companies Act, 1956 (hereinafter referred to as "the said Act" ).

(2.) THE company was incorporated as a public company limited by shares on November 15, 1979, and was then called the CIDCO Transport Corporation Limited. It was a subsidiary of City and Industrial Development Corporation of Maharashtra Limited ("cidco") and its share capital was held by CIDCO and its nominees. The shares of CIDCO itself are owned by the State of Maharashtra and its nominees. The object of the company was to carry on the business of carriage of passengers by road and water within and around New Bombay. The nominal capital of the company is Rs. 50,00,000 divided into 50,000 shares and its issued and paid-up capital is rs. 10,00,000 divided into 10,000 shares. On June 17, 1980, the name of the company was changed to that which it presently bears, namely, the Bombay Metropolitan Transport corporation Ltd.

(3.) THE company had losses and labour troubles between 1980-81 and 1983-84. In February, 1984, its fleet of buses was immobilised and it had no liquid funds to maintain them. On february 24, 1984, a meeting was held with the Chief Minister of Maharashtra and it was decided that the company should close down its services and that these should be taken over by the Maharastra State Road Transport Corporation. Accordingly, on March 1, 1984, a notice was issued for the suspension of the company's operations with effect from March 3, 1984. On March 18, 1984, a lock-our was declared.