STATE OF MADHYA PRADESH Vs. HUKUMCHAND MILLS LTD

JUDGEMENT

(1.) THIS matter relates to winding up of a company - M/s. Hukumchand Mills Limited. By order dated 22-1-2003, this Court has ordered for winding up of this company under the supervision of this Court pursuant to a reference made by B. I. F. R. (Reference Case No. 194 of 1987) on 11-9-1991 under Section 20 (2) of SICA whereby it was finally opined that the company in question cannot be rehabilitate nor can be run as a commercial solvent company. It was, therefore, opined that this is a fit case for winding up and accordingly, the matter was referred to this Company Court by the BI. F. R. as per requirements of Section 20 (2) of SICA for passing the final winding up order because power to wind up any company rests with the company court under the Companies Act. Accordingly, as observed supra, this Court on 22-1-2002 passed the winding up order and appointed official liquidator to take charge and possession of the assets of the company to enable this Court to ensure its proper disposal.

(2.) ON 21 -3-2003, this Court had permitted the official liquidator to sell Raw material and cloth in stock lying for more than a decade in companies. A detailed order was passed by this Court whereby this Court appointed a Sale Committee consisted of one representative of Bank of India (secured creditor of Company), one from State Bank of Indore, one from IDBI (Financial Institution) one from Labour Union and Official Liquidator. This Committee was asked to prepare the inventory of the entire stock to be sold and get its valuation done. This court then directed that wide publicity in national papers such as Indian Express (all Editions ). The Hindu (all editions), Economic Times, Dainik Bhaskar (Indore Edition) and Nai Dunia (Indore Edition) be given specifying therein the details of goods put for sale to enable the intending purchaser/tenderers to submit his/their proper offer.

(3.) ACCORDINGLY, the sale committee convened its meeting on 31-3-2003 and appointed one M/s. O. K. Jain and Co. (Assessors and Valuers) for inspecting the goods put for sale and submit their valuation report in sealed cover. In terms of the directions given by this Court, the publicity for sale of goods were given in the papers (Anncxurcs B-1 to B-23 of O. L. report, dated 25-6-2003 ).