IN RE: MAHALUXMI COTTON MILLS LIMITED Vs. STATE

JUDGEMENT

(1.) This is an application for sanction of a scheme of arrangement under Section 153, Companies Act. The Company was incorporated in the year 1921 with an authorised capital of Rs. 20,00,000 divided into 80,000 shares of Rs. 25 each. The authorised capital is now divided into 4,00,000 shares of Rs. 5 each. The issued capital is RS. 20,00,000 and the amount of capital paid up or credited as paid up is Rs. 19,86,898. The Registered Office of the Company is at 18, Netaji Subhas Road, Calcutta. The object of the Company is, inter alia, to deal in cotton and to carry on the business of ginning cotton, spinning yarn and manufacture of linen cloth and other goods.

(2.) The Managing Agents of the Company are M/s Hemendra Nath Dutta & Sons Limited, a private limited company. They were so appointed on 10th March 1943 for a period of 20 years. Two of the Directors of the Managing Agency Company, viz., Hemendra Nath Dutta and Rabindra Nath Dutta are also Directors of the Company. The business of the Company is at present being carried on by a Board of Directors consisting of persons other than the said Hemendra Nath Dutta and Rabindra Nath Dutta. The present Board of Directors has suspended the said Managing Agents.

(3.) On 29th November 1948, an application was presented to me for sanction of a scheme which was annexed to the petition. I admitted the petition and gave directions for holding a meeting and fixed the date of hearing for 26th January 1949. Pursuant to the directions, on 9th January 1949, the meeting was held but it is said that certain creditors whose debts were disputed created disturbances, by reason whereof the creditors could not consider and vote upon the scheme.