G. SIVA RAMAKRISHNA Vs. RUSNI DISTILLERIES P. LTD.

JUDGEMENT

(1.) THE company petition is filed under Sections 433(e), 434(1)(a) and (c) and 439(1)(b) of the Companies Act, 1956, seeking for winding up of the respondent, an incorporated entity under the Companies Act, 1956. Its authorised share capital statedly is Rs. 7,50,00,000 divided into 7,50,000 equity shares of Rs. 100 each. It was incorporated with the object of manufacturing ethanol from sweet sorghum, fruits and grains, and marketing ethanol, rectified spirit, extra neutral alcohol, beer and other essences used in liquor and allied industries. The two petitioners allege that the respondent -company is unable to pay its debts to them even after issue of notice under Section 434 of the Companies Act, 1956 and, therefore, requires to be wound up.

(2.) IN support of the case, two petitioners -husband and wife -allege that they lent a sum of Rs. 2,07,96,031 and Rs. 66,70,000 respectively, to the respondent -company. This was admittedly given as an unsecured loan. They had, however, option to convert the unsecured loan into shares of the respondent -company.

(3.) AFTER receiving notice of the extraordinary general meeting under Section 173(2) of the Companies Act, 1956, the petitioners individually sent notices, dated November 10, 2006, purportedly under Section 434 of the Companies Act, 1956. This was replied to by the company on December 5, 2006, denying the petitioners' allegations. Again, the petitioners sent notice on December 29, 2006, which was also replied to on January 23, 2007, denying unsecured loan allegedly given by the petitioners. Therefore, present petition is filed for winding up.