IN RE Vs. STATE

JUDGEMENT

(1.) I have today passed an order dispensing with the procedure under Section 101(2) of the Companies Act, 1956. This is in view of the averments made in the affidavit in support of the Company Petition and in a further affidavit dated 19.12.2008 inter-alia to the effect that the creditors of the Company are of the value of about Rs.127 crores; creditors of an aggregate value of about 99.38% have given their consent and that subsequently the remaining creditors have been paid and/or have also given their consent.

(2.) THE Company Registrar has invited my attention to an order of a learned single Judge of this Court dated 19.12.2008 in Company Petition No.1067 of 2008 connected with Company Application No.1680 of 2008 which is similar to the present application. The learned Judge called for a certificate from a qualified Auditors/Chartered Accountants empanelled with the Registrar of Companies/Regional Director on the question as to whether the proposed reduction therein does or does not involve diminution of liability and is not prejudicial to the interests of the creditors/public in general. The learned Judge observed that depending on the opinion expressed in such report, appropriate orders would be passed in that matter. It was further observed that this course would not only subserve the interests of the creditors/public in general but also facilitate the Court in taking an informed decision. The learned Judge therefore issued notice to the Government of India, through the Regional Director (Western Region). The Regional Director was directed to take such measures as required for issuance of the certificate in consultation with the appropriate authorities and to submit a certificate to the Company Registrar.

(3.) IN the present matter I am satisfied that the Company is entitled to the orders sought without taking recourse to the said procedure and I have accordingly signed the order.