UMANG BOARDS PVT LTD Vs. STATE

JUDGEMENT

(1.) The Special Appeal has been preferred as against the order dated 13.12.2010 passed by the Single Bench in the S.B.Company Petition No.19/2009. Appellant-applicant M/s Umang Boards Private Limited had filed an application in the Company Petition to oppose the admission of the Company Petition filed for the purpose of winding up. The Company Petition has not yet been admitted. The application was filed on the strength of agreement to purchase shares dt.24.12.2007 entered into by the appellant-applicant with the JME Employees Credit & Thrift Society Limited. It is not in dispute that an application was filed by the appellant with the State Government for transfer of certain shares, which has been declined. It is also not in dispute that the said workers' Union had also issued a cheque for refund of the amount paid under the agreement of Rs.21 lacs to the appellant, which has not been accepted and it is not in dispute that the arbitration proceedings pertaining to the said agreement are pending before the ADJ NO.9, Jaipur.

(2.) The Single Bench has held that as the appellant is not a creditor or contributory, it cannot be said that the applicant Umang Boards Private Limited is entitled to be heard at the stage of admission of the company petition for the purpose of winding up. Aggrieved by the order, this Special Appeal has been preferred.

(3.) Mr.Amol Vyas, learned counsel appearing on behalf of appellant-applicant has submitted that there is no bar to grant opportunity of hearing at the stage of admission to a person interested on the basis of the agreement to purchase shares, though the appellant is not a creditor or contributory as on today but opportunity of hearing could have been granted, as there is possibility of arbitration award being passed in favour of the appellant. In that exigency, the right of the appellant would be adversely affected. Consequently, the opportunity of hearing ought to have been granted to the appellant. Learned counsel appearing on behalf of the appellant-applicant has placed reliance on a decision of the Apex Court in National Textile Workers Union vs. P.R.Ramakrishnan, 1983 AIR(SC) 75, to contend that even the workers have the right to participate in the proceedings at the stage of admission of a petition for winding up. The appellant being holder of agreement to purchase share from workers' Society is also entitled to be heard on the same parity of reasoning. He has also relied upon the decision of the High Court of Bomay in Hy-Line International vs. C and M Hy-Line Farms P. Ltd., 2004 120 CompCas 337 and the decision of the M.P.High Court in Gwalior Sugar Company Ltd. vs. S.S.Gupta and Co., 1969 AIR(MP) 74.