RUSSELL CREDIT LIMITED Vs. SAND PLAST (INDIA) LTD.

JUDGEMENT

(1.) The order passed by this Court dated 16.08.2018 whereby the application under Rule 9 was allowed and the name of the petitioner-company was allowed to be changed, the respondent preferred D.B. Special Appeal No.27/2018 which was disposed of by the Division Bench vide its order dated 14.11.2018 observed as under_ Having regard to the fact that after the amalgamation of BFIL Finance Limited, which is the changed name of original applicant ITC Bhadrachalam Finance and Investment Limited, with Russell Credit Limited, the Company Judge has merely permitted interest of the original petitioner to be pursued by the said company, no interference is called for. However, such substitution should not in any manner prejudice the interest of the appellant, who is non-petitioner in company petition, if the appellant is able to show that settlement was arrived at between the original petitioner company and the appellant herein. It goes without saying that newly impleaded company would in any case be required to show from its balance sheet whether at the time of merger any loan amount was shown due towards the appellant (non-petitioner in the company petition). In view of the above, we are not inclined to interfere with the impugned orders. The appeal is disposed of with the aforesaid observations. Stay application No. 4299/2018 also stands disposed of.

(2.) The respondent, therefore, has asked this Court for directing the petitioner company to show its balance sheets at the time of merger to prove that any loan amount was shown due towards the respondent-company.

(3.) Vide order dated 29.11.2018 after taking note of the order passed by the Division Bench while examining the application for production of documents by the non applicant company- respondent it was observed by this Court as under- Before adjudicating whether the respondent company has been in a position to pay its debts or not and before passing an order in terms of Section 433 of the Companies Act, last opportunity is given to the respondent- Company to show that it has already settled all its dues. The question regarding the petitioner company of making available its balance-sheets would arise only thereafter. An affidavit in this regard may be filed by the respondent before the next date. List these cases again on 6th of December, 2018.