TMI Blog1990 (9) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... d the balance-sheet as on June 30, 1985. (A photo copy of the audited balance-sheet duly signed by the managing director and other directors is annexure P-1 to the petition). It had also been approved in the annual general meeting of the company held in the year 1985. These amounts, of course, form part of the total amounts of Rs. 8,37,421.32 and Rs. 1,20,960 shown payable to sundry creditors and unsecured creditors respectively. Even in the books of account for the subsequent years, these are duly mentioned. Though the petitioners were in dire need of money during the years 1986-1987, yet on account of the poor financial position of the company, the petitioners accommodated the company for some time. Ultimately, the petitioners' mukhtiar-e-aam (general-attorney), Shri Brij Mohan Handa, addressed a letter to the managing director of the company indicating that they cannot wait any further for the repayment of these loans and the company should arrange to make the payments at the earliest. Copy of this letter is annexure P-4. The managing director, Shri Jujhar Singh, replied to this letter on August 19, 1987, expressing the inability of the company to repay these amounts. Copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han Singh and his family members. Hari Dhan Singh and his group including Jujhar Singh had removed the books of account before the present management took over the affairs of the company with effect from June 30, 1985. Since the books of account and other documents were taken away by Hari Dhan Singh and Jujhar Singh before the present management took over, the latter may not be able to expose the various acts of omission and commission indulged in by the earlier management. The amounts now being claimed are only fictitious entries and are not supported by any vouchers, etc. The claim of interest on the alleged principal amounts is not even supported by the entries made by Hari Dhan Singh in favour of his family members. As per the said entries, no agreement for payment of any interest on the said amounts exists. It is obviously wrong on the part of the petitioners to contend that subsequent to June 30, 1985, no balance-sheet, etc., of the company has been prepared. On the contrary, the audited accounts and the balance-sheet of the company were passed in their annual general meeting held on December 31, 1987. The amounts can, by no stretch of imagination, be taken to be due to the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the company in this manner, has filed this collusive petition along with his family members suing the company through his own son, i.e. , Jujhar Singh. He even got the provisional liquidator appointed by concealing the material facts from the court. The petition is, thus, nothing but abuse of the process of court. Besides the above noted reply filed by Pushpinder Singh Dhillon, Jujhar Singh too has filed a reply to this petition. By and large, he has admitted the claim of the petitioners except that they are entitled to the payment of any interest on the amounts claimed by them. In other words, he has admitted all the material allegations made by the petitioners except a few which do not harm their interest in any manner. In her replication, Smt. Keerat Kaur, besides controverting the factual stand taken by Pushpinder Singh, has reiterated the main assertions in her petition. What is specifically highlighted therein, however, is that Pushpinder Singh never became the managing director of the company and it was Jujhar Singh who continued to be so till the affairs of the company were taken over by the provisional liquidator on December 18, 1987. Learned counsel for the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to who are the persons entitled to be heard in a winding up petition, the Supreme Court, in the context of section 443 of the Companies Act, has expressed its opinion in National Textile Workers' Union v. P.R. Ramakrishnan [1983] 53 Comp. Cas. 184 (SC) that even the workmen employed by the company have the right to be heard by the court, not as creditors of the company for dues outstanding but because they are likely to be deprived of the means of livelihood if the company is wound up. By a majority decision, the court held that since the right to apply for winding up is a creature of the statute and is available only to those mentioned in the statute, the workers cannot prefer a winding-up petition against the company. However, it does not follow as a necessary consequence that the workers have no right to appear and be heard in support or opposition to the winding up petition. The court further held that since there was nothing in the Companies Act expressly prohibiting workers from being heard in a winding up proceeding, the workers would be entitled to be heard though as interveners and not as parties. Therefore, it is apparent that the court has enough discretion to hear a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re [1894] 2 Ch 349, it was held that if the petition is not presented in good faith and for the legitimate purpose of obtaining a winding up order, but for some other purpose, such as putting pressure on the company, the court will restrain the advertisement of the petition and stay all further proceedings upon it." The stage the instant petition has reached is, as stated by their Lordships, at ( i ) above. I, therefore, see no logic or rationale in the contention of the learned counsel for the petitioners and Jujhar Singh that Push-pinder Singh and other shareholders who, as already pointed out, are members of the company have no right to be heard at this stage, i.e. , the admission of the petition. Therefore, I repel the above noted stand of learned counsel. Now, the merits. Having examined the respective pleas of the parties, I find that the contention of Pushpinder Singh that the present proceedings are not only collusive but also amount to abuse of the process of the court, deserve to prevail. It is abundantly clear from the above-noted statement of facts that the affairs of the company have all through primarily been run by Hari Dhan Singh and Jujhar Singh as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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