IN RE Vs. IND-SWIFT LIMITED

JUDGEMENT

(1.) The applicant company M/s. Ind-Swift Limited was incorporated on 06.06.1986 having its registered office at Chandigarh. It is a listed company. The authorised share capital of the company is Rs. 40 crores detailed as 7,50,00,000 equity shares of Rs. 2/- each and Rs. 25,00,000/- preference shares of Rs. 100/- each. The issued, subscribed and paid-up capital as per master data, the paid-up share capital is Rs. 25,03,29,306/- as also reflected in the Balance Sheet for the year 2016-2017, which was filed by the petitioner company on 23.08.2017 in the registry. The details of the issued, subscribed and paid-up share capital is 5,41,64,653 equity shares of Rs. 2/- each and 14,20,000 cumulative redeemable preference shares of Rs. 100/- each fully paid-up. However, the figure reflected in the previous year as per this Balance Sheet is 5,03,46,941 equity shares of Rs. 2/- each and 14,20,000 redeemable preference share shares of Rs. 100/- each fully paid-up.

(2.) The petitioner company earlier filed a petition before the Company Law Board, New Delhi bearing CP No.27/2/2013 under Section 58AA of the Companies Act, 1956 (for brevity '1956 Act') read with Rule 44 of the Company Law Board Regulations 1991 with a prayer to allow the scheme for repayment of its deposits as per the Schedule of Repayment and exempt the applicant company from the requirement of maintaining liquid assets under Rule 3 (A) of the Companies (Acceptance of Deposits) Rules, 1975 till the validity of the scheme. It was stated that it was a case of small depositors.

(3.) The grounds taken in the said application was that the petitioner company has been accepting deposits from the public since the year 2002 and regularly and punctually paid back the fixed deposits upto 28.02.2013. In the financial year ending 31.03.2013, the applicant company started facing liquidity problems and incurred losses to the extent of Rs. 111.29 crores. The reasons for the current liquidity problems were explained as under:-