DEVI DAYAL MARWAH Vs. STATE OF A.P.

JUDGEMENT

(1.) This is an appeal by one Devi Dayal Marwah against the order of our learned brother, Satyanarayana Raju, J. in O. P. 4 of 1959 directing the winding up of the Deccan Porcelain and Potteries Ltd., Saifabad, Hyderabad. The Original Petition was filed by the State of Andhra Pradesh represented by the Secretary to Government, Industries (Industrial Fund) Department, Hyderabad under Section 439 of the Indian Companies Act (1 of 1956) praying that in the circumstances stated in the affidavit filed therewith the High Court may be pleased to wind up the said company by' order of the Court.

(2.) The company was incorporated under the Hyderabad Companies Act (IV of 1320 F) in the Fasli year 1352 with its registered office at Saifabad in Hyderabad. It had a nominal capital of Rs. 10 lakhs O. S. (Rs. 8,57,142-13-9 I. G.) divided into 40,000 ordinary shares of Rs. 25 O.S. each. The paid up capital was Rs. 4,47,734-12-0 O.S. (Rs. 3,83,772-10-4 I.G.). The Company was constituted for the purpose of acquiring the business of the Hyderabad Potteries and to carry on the business of manufacturers, buyers and dealers in all kinds of clay work, chemical preparations and glazes whatsoever and obtain patents for them to carry out the other objects as set forth in the memorandum of association. On the 1st October, 1947, the Company executed a deed of mortgage in favour of the Industrial Trust Fund, H.E.H. the Nizam's Government (Industrial Department, Government of Andhra Pradesh, now) for O.S. Rs. 2,50,000 (Rs. 2,14,285/- I.G.) for purchase of machinery tools and construction of furnace, buildings etc., agreeing to repay the amount with interest at 3 1/2 % per annum.

(3.) As stated above, the petition was filed by the State of Andhra Pradesh represented by the Secretary to Government Industries (Industrial Fund) Department, Hyderabad. It is averred by the petitioners that the total amount due by the Company under the deed of mortgage and the promissory notes, including the interest that accrued thereon and the amount paid by the Government towards the insurance premia is Rs. 3,10,351-38 (I.G.) and that the petitioners made demands on the Company for repayment of the amount due to them. They also sent a registered notice through their advocate on 11th May, 1958, demanding repayment of the amounts due. This notice was refused by the Company. It is further alleged that the Company has ceased to function since 1949 consequent upon its managing agents migrating to Pakistan.