JARDINE HENDERSON LTD. Vs. HOWRAH MILLS COMPANY LTD.

JUDGEMENT

(1.) This is a winding up application. It was instituted long ago, in or about March 1989. The petitioning creditor is a company by the name of Jardine Henderson Ltd. The company sought to be wound up is Howrah Mills Company Limited. They will henceforth be referred to as petitioning creditor and company respectively.

(2.) It appears that way back in 1987 an enquiry into the affairs of this company was being made by the Board for Industrial and Financial Reconstruction. Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 ("the SICA") enacted inter alia that a winding up application could not be filed or proceeded with during the pendency of proceedings before the said Board. This winding up application was filed on or about March 31, 1989 after such enquiry was commenced by the said Board. Therefore, the winding up application remained stayed. Now, on or about July 10, 2008 this company came out of the protection under the said Act. By another provision of the said Act the whole period of pendency of such proceedings before the Board was to be excluded for the purpose of calculating the period of limitation. Therefore, the period of limitation stopped running from the time enquiry was started by the said Board on or about April 1, 1987.

(3.) For quite some time, from the early 80's the petitioning creditor was assisting the company to run its business. There is absolutely no doubt in my mind about this. This fact is not denied in the reply to the statutory notice or in the affidavit in opposition. However, from April 1, 1987 the management of the company changed. It has been submitted before me that although the management of the company changed, the managing director remained the same.