REGISTRAR OF COMPANIES Vs. SHREEPALPUR COLD STORAGE PRIVATE

JUDGEMENT

(1.) THIS is an application filed by the Registrar of Companies, Bihar, under Clauses (c) and (f) of Section 433 of the Companies Act, 1956.

(2.) IT is said that the present company was incorporated on the 15th January, 1969, for the purpose of carrying on business of cold storage, preservation or confectionary concerns. The registered office of the company is situated at Waliganj in the town of Arrah in the district of Shahabad. There were only two directors of the company, one of them, Akshay Kumar Dubey, being the managing director. The last balance-sheet filed by the company was for the year ending 31st December, 1970. IT would appear therefrom that the cash in hand which the company had at the relevant date was a sum of Rs. 1,073.80. IT is said that the reserve surplus was shown to be nil. Further, that in the year 1969, there was no sale or income and that there was a deficit of Rs. 105 in respect of the first year since the incorporation of the company. In respect of the next and the last year the sale or income is shown to be nil. Further, it would appear that no profit and loss account had been filed when the balance-sheet aforesaid was filed and that the matter was taken up by the Registrar with the company but no reply thereto was received. IT has further been stated that the company had not commenced its business within a year of its incorporation and that it had suspended its business for more than a year. Reference has been made to the note of the auditors which shows that although its building was being constructed on a land alleged to have been leased by the owner who is one of the directors, there was no lease agreement executed. IT has further been stated that in a letter to the Registrar of Companies dated 8th December, 1971, the managing director had stated that the company was totally closed and that there was no hope of its functioning in the near furture. In such a situation, the Registrar made a prayer to the Regional Director, Company Law Board, to accord sanction for presentation of an application to the High Court for its winding up. The Regional Director issued notice to the company, but no representation was made on behalf of the company, and, accordingly, sanction was given and the present application has been filed.

(3.) THE only question for consideration is as to whether an order of winding up the company should be made on grounds mentioned in Clauses (c) and (f) of Section 433 of the Companies Act, 1956.