BARANAGAR JUTE FACTORY PLC Vs. LAXMI NARAYAN TAPARIA

JUDGEMENT

(1.) On a petition filed by the Shreckishan Omprakash being Company Petition No. 2 of 1987, the learned Company Judge by his order dated 28th October, 1987, directed the Baranagar, Jute Factory, Plc. to be wound up and the Official Liquidator was directed to take possession of the company and its assets. Subsequent to the passing of the said order, one Raj kumar Nemani filed an application under Sections 466 and 557 of the Companies Act, 1956, for staying the winding up proceedings permanently and for constitution of a Committee of Management with the persons mentioned in the Scheme for revival of the Company in liquidation. An order was passed on the said application by the learned Company Judge on 15th September, 1988, appointing an ad hoc Committee of Management for the purpose of reopening the jute mill and to run the same in terms of the said Scheme. The Official Liquidator was directed to continue in possession of the mill but was also directed not to interfere with the management of the mill by the ad hoc Committee appointed by the Court for the purpose of running the mill.

(2.) Apart from the above application filed by Shri Raj Kumar Nemani, another application was filed by M/s. Shiva and Company for considering another Scheme for revival of the company in liquidation. Having regard to the said two applications, one Mr. M.A. Latiff, Advocate, was appointed as Special Officer for calling a meeting of the unsecured creditors and to place the two schemes for revival of the company in liquidation before the said meeting. Being aggrieved by the order of 15th September, 1988, M/s. Shiva and Company preferred an appeal in which an interim order was passed on 22nd September, 1988, replacing the ad hoc Committee of Management appointed by the learned Company Judge by another Committee of Management consisting of representatives of various groups, including a representative from the State Bank of India and one from ICICI, two representatives of the workmen, one jute technologist and a Chartered Accountant. There was a further direction staying the winding up proceedings for six months.

(3.) On a Special Leave Petition, being S.L.P. No. 11848 of 1988, filed by Shri Raj Kumar Nemani, the Hon'ble Supreme Court by its order dated 7th October, 1988, restrained the Committee of Management appointed on 22nd September, 1988, from functioning, but retained Mr. Laliff as Special Officer to carry out the directions given by the Hon'ble Supreme Court. The Special Officer was, inter alia, directed to call a meeting of the unsecured creditors and workers to consider the schemes of Shri Raj Kumar Nemani, Shiva and Company and the respondent No. 3 before the Supreme Court. The Special Officer was also directed to file a report within five weeks from the elate of the order.