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2020 (9) TMI 807 - HC - Companies LawWinding up of Company - Section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 - change of place of registered office of company - HELD THAT:- Considering the lapse of 17 years since the reference dated 20.12.2002 was received from the BIFR in the year 2002/2003 and the Financial Position of the Company as disclosed in the affidavit of the Company as also the Official Liquidator, as, the total assets and the net worth of the Company exceeds the liabilities, as also in view of the three arbitration awards in its favour and the affidavit of Bank of India dated 29.04.2013 this Court is of the view that as the recommendation of the BIFR is not binding and conclusive upon this Court in view of the Division Bench judgment relied upon by the Company's counsel upon the case of J.M. MALHOTRA AND OTHERS VERSUS UNION OF INDIA AND OTHERS [1994 (9) TMI 365 - MADRAS HIGH COURT] which has been upheld by the Supreme Court, this Court is of the view that the recommendations of the BIFR can not be accepted at this belated stage for the aforesaid reasons and the proceedings for winding up are liable to be dropped. Even after requisite notification and publication as per Rules no one else has come forward claiming any amount from the Company as a creditor. Moreover, as already stated, the financial position of the company has undergone a change, during pendency of these proceedings. It is worthwhile to mention that these proceedings are not on the grounds for winding up available under the Companies Act and the same have been initiated on the recommendation of the BIFR on the ground referred in Section 20 (1) of the Act, 1985 i.e. the net worth was less than the accumulated losses and the Company was not in a position to meet all its financial obligations within a reasonable time in future and as noticed hereinabove the financial position of the Company has changed in these 17 years, therefore, in view of the above, it can not be said that the Company can not revive itself. Petition disposed off.
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