INDUSTRIAL DEVELOPMENT Vs. HIRA STEELS AND ALLOYS LTD

JUDGEMENT

(1.) This is an application under sections 433 of the companies act, 1956, filed by m/s. Industrial development corporation of orissa ltd. (hereinafter referred to as " the corporation") for winding up m/s hira steels and alloys ltd. (hereinafter referred to as "the company ").

(2.) The company was incorporated on august 23, 1974, with an authorised capital of rs. 50 lakhs which was subsequently increased to one crore with effect from march 5, 1975. The object of the company was to set up a project for manufacturing a special type of steel ingots at hirakud. It is alleged, that the corporation granted loans exceeding rs, 18,50,000 from time to time and in its letter dated january 22, 1976, called upon the company to make payment of interest. The company replied that its financial position was not good and requested for deferring of repayment of the loan and the interest till its financial position improved. Despite demands, the cbmpany failed to clear up the loan and expressed its inability to pay the interest on the loans. The company has closed its business and vacated its registered premises. The managing director of the company is not available to carry on the day to day administration and even to call the statutory meetings and file the statutory returns. No annual general meeting of the company has been held after march 26, 1977, as the annual general meeting was not held and the annual return as required under sections 159 of the companies act was not furnished, the registrar of companies issued notices to comply with the statutory requirements, but there was no response. The industrial licence issued to the company by the ministry of steel and mines has been cancelled since the company, failed to implement the project.

(3.) The company has not entered appearance to oppose the winding-up petition which was duly advertised.