PRITAM SINGH BATRA Vs. DEOL AGRO OIL LTD

JUDGEMENT

(1.) THIS is a creditor's petition filed under Sections 433, 434 and 439 of the Companies Act, 1956, for the winding up of Deol Agro Oil Ltd., Sector 17 -E, Chandigarh (for short, 'the company'), on the ground that it is unable to pay its debts.

(2.) PETITIONERS Nos. 1 to 14 paid to the company a sum of Rs. 20,000 each for the purchase of its shares and these amounts were deposited as per receipts copies of which are annexures P -1 to P -14 with the petition. Similarly, petitioners Nos. 15 and 16 also deposited a sum of Rs. 25,000 each, vide receipts annexures P -15 and P -16 with the petition. Petitioner No. 17 is an ex -accountant of the company and claims that the company owes him a sum of Rs. 8,000 as arrears of salary which are duly reflected in its books of account and the balance -sheet. It is also alleged that the directors of the company are committing irregularities in managing its affairs and a few instances have been mentioned in the petition. It is further alleged that for this reason the petitioners became apprehensive about the viability of the company and, therefore, they were no longer interested in the purchase of shares and they demanded their money back from the company. When it was not paid, they served a statutory notice under Section 434 of the Companies Act in July 1994, The company did not send any reply to the notice and hence, this petition was filed in August, 1994.

(3.) AS regards the claim of petitioner No. 17, Mr. Narang, on behalf of the company stated that the amount of Rs. 8,000 will be paid to him within one week from January 6, 1995. In view of this assurance, the claim of this petitioner also stands satisfied. There is, therefore, no ground to wind up the company and the petition is consequently dismissed leaving the parties to bear their own costs.