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2019 (2) TMI 1050 - HC - Companies LawWinding up petition - Power of Bank to file winding up petition - Whether feasible scheme for revival available, the power under Section 45-MC could be exercised for winding up? - HELD THAT:- An appeal will lie only if it is so provided in the statue. Its scope and procedure shall be as is provided there. The power, to grant or not to grant an interim order or the extent to which an interim order can be granted or an automatic stay of the impugned order, would be governed by the language of the Statute. In sub-section 7 there is nothing, which provides for an automatic stay of the impugned order, on filing of an appeal before central government. Sub-section 7 only provides that the order of RBI shall be final, in case an appeal is filed against the same, on the appeal being finally decided. But, that is a case with any appeal, whether such a line is there or not in the statue. If an appeal is filed against an order, the impugned order becomes final only on final disposal of the appeal. But the same would not mean that such an order will not be given effect during the pendency of appeal, unless stayed by the appellate court. If this interpretation, as submitted by Sri Mathur, is accepted, than no stay order would be required in any appeal, as the order under appeal will become final only on final disposal of the appeal and, thus, a stay order will have to be presumed. Such can not be the interpretation of sub section 7. Thus this submission of Sri Mathur is also rejected. The order of RBI remains operative, as there is no stay order passed in the appeal of SIFCL, till now. As per first proviso to Section 434 (1)(c), only such winding up proceedings are to be transferred which are covered by the Transfer Rules, 2016 and since, the present winding up proceedings, as already found, are not covered by the aforesaid rules, the same are saved from being transferred. From the above, it is clearly indicated that the SIFCL is repeatedly using dilatory tactics to somehow scuttle the hearing of the case. Therefore, satisfied that a mere warning would not suffice to send a strong message. Thus, looking into the conduct of SIFCL, impose a cost of ₹ 5 Lakhs upon the Directors of SIFCL collectively, which they shall deposit within 30 days from today with the State Legal Services Authority of this Court at Lucknow and produce a receipt of its payment to the Senior Registrar of this Court within the aforesaid period of 30 days. In case of failure on their part to deposit the said cost, it shall be open for the Senior Registrar of this Court to proceed against them and recover the costs as arrears of land revenue. For the reasons and findings already given above, as satisfied that a case on all the four grounds of Section 45MC-1 of the RBI Act is made out against SIFCL. A case for advertising the petition in accordance with Rule 24 of the Companies (Court) Rules, 1959 is made out. Hence, petitioner RBI is directed to advertise the petition in accordance with Rule 24 of the Companies (Court) Rules, 1959. The notice of the petition be advertised as per rules in two newspapers namely 'Hindustan Times' in English and in "Hindustan' in Hindi in their Lucknow editions. The petition shall also be published in the official gazette of the State fixing 02.04.2019 as the next date of hearing of the petition. The petitioner shall also file an affidavit of service in compliance of the aforesaid directions by the next date fixed. To preserve the assets of the company, the Official Liquidator attached to this Court is appointed Liquidator provisionally of Sahara India Financial Corporation Limited (SIFCL) together with all its assets, papers, books of accounts, documents and files etc. He is directed to proceed forthwith and take charge of all properties and effects of the company and its management. SIFCL and officers of SIFCL/all persons concerned are restrained from operating any bank account of SIFCL and its funds without leave of this Court till Official Liquidator takes charge. SIFCL is directed to fully co-operate with the Official Liquidator in smooth and immediate handover, as directed above.
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