POLYOLEFINS INDUSTRIES LTD Vs. KOSMEK PLASTICS MANUFACTURING LTD

JUDGEMENT

(1.) The these two petitions are filed by creditors of the company, Kosmek Plastics Manufacturing Limited, for the purpose of winding up of the company on the ground that the company is unable to pay its debts. Company Petition No. 385 of 1986 has been fled by a creditor who had supplied form June 4, 1985, to August 13, 1985, various goods to the company. the company is liable to pay to the creditor in that petition a total sum of Rs. 1, 38,471.87. In Company Petition No. 44 of 1986, the petitioner had supplied raw materials to the company form time to time in respect of which the company has to pay to the petitioner a sum of Rs. 9,47,204 as on November 30, 1985, together with further interest on the principal amount. There is also a petition filed by the company itself for voluntary winding up, being company Petition No. 612 of 1985. there are, however, proceedings pending before the appellate Disputes Act which will be relevant in determination of Company Petition No. 612 of 1985. Hence that petition has been adjourned for 2 weeks.

(2.) When the two company petitions herein filed by the creditors were called up for hearing, Miss buch, learned advocated for the Mazdoor Congress, a trade union registered under the Trade Unions Act, 1926, to which about 270 workmen employed in the company are affiliated, applied for intervention. Since the workers will be affected by any orders that may be passed, I have allowed her to intervene and she has made submissions in connection with these tow petitions which require to be considered.

(3.) The sick Industrial Companies (Special Provisions) Act, 1985, was enacted and it received the assent of the President on January 8, 1968. Sections 1 to 14 of this Act were brought into operation as form january 12, 1987. Sections 15 to 34 of the Act have been brought into operation form May 15, 1987. Under this Act, section 3, sub-section (o), defines "sickindustrial company" as follows: