REGISTRAR OF COMPANIES Vs. CHAUHAN BROTHERS INDUSTRIES

JUDGEMENT

(1.) THIS is an application under Section 433(c) read with Section 433(f) of the Companies Act (hereinafter referred to as "the Act") for an order for winding up the company called Messrs. Chauhan Brothers Industries Private Ltd.

(2.) THE aforesaid company was incorporated on 20th of May, 1958. It is said "that the main objects of the company, as per memorandum of association, are to purchase, take on lease, or otherwise acquire any mines, mining rights and metalliferrous land in India or else where and any interest therein and to explore, work, exercise, develop and turn into account the same ".

(3.) THE company has appeared and filed a counter-affidavit. It is said that the statements in the petition to the effect that the company had not commenced its business since its incorporation and that it had been incurring losses every year were based on the balance-sheet and profit and loss account of the company as on 31st of March, 1970. But it will appear that during the financial years 1970-71 and 1971-72 the company had commenced its business and had earned profits to the extent of Rs. 729.75 and Rs. 724'25 by way of coal commission. It is said that " though at the initial stage after incorporation of the company, due to other heavy engagements, the only shareholders-cum-directors of the company were not much inclined to carry on any business but subsequently in their letter dated August 7, 1971, written to the Regional Director, Eastern Region, Company Law Board, Calcutta, it was stated the company had proposed to set up an industry at Dhanbad Industrial Estate at Pradhan Khanta, Dhanbad, but due to some financial difficulties the setting up of the project has been delayed. "