STATE OF PUNJAB Vs. NORTHLAND SUGAR COMPLEX LTD.

JUDGEMENT

(1.) The State of Punjab through the Punjab State Industrial Development Corporation Limited (for short "the PSIDC") has directed the present company appeal against the impugned order dated 24-8-2006 (Annexure A3), vide which, the learned Company Judge dismissed its application, to release the payment out of the amount deposited by sale of sugar stock of M/s. Northland Sugar Complex Limited, Dasuya (under liquidation) (for brevity "the Company").

(2.) The brief facts, relevant for disposal of the present appeal and emanating from the record, are that the Company was dealing in sugarcane products. The farmers/canegrowers had supplied the sugarcane to the said Company, but it did not make the payments to them. One Shalini Industrial Corporation supplied the pipe fittings and valves to the Company, but it also failed to make the payment of the articles, which necessitated Shalini Industrial Corporation to file a Company Petition, on 17-4-1996, for winding up the Company. The learned Company Judge ordered the winding up of the Company, vide order dated 9-10-1997, the operative part of which, is as under:

(3.) As is evident from the record that during the pendency of the Company Petition, the PSIDC filed a petition for directing the Official Liquidator to release the payment out of the amount deposited by sale of sugar, to the State of Punjab for the payment to be made to the canegrowers, invoking the provisions of Section 475 of the Companies Act, 1956 (hereinafter to be referred as "the Act") read with Rules 150, 151 and 9 of the Companies (Court) Rules, 1959 (hereinafter to be referred as "the Rules"), inter alia, with the following prayers: