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2017 (7) TMI 226 - HC - Companies LawCall of the Winding Up order - Held that:- There is no prohibition or restraint on the Company Court to recall the winding up order if the facts and circumstances requiring such a recall are established by any of the applicants, be it Official Liquidator or a Creditor or a contributory or a share holder. Here, the applicant is the majority share holder, viz. the State of Karnataka itself and this Court is not only satisfied but records its happiness for a Government Company seeking to come out of the process of winding up by this Court and for removing the impediment on the user of the assets of the Company, the big chunk of land for public purposes and for that purpose seeking its revival. The revival of Company does not necessarily mean revival and restoring of the usual manufacturing or the business activity. It is a broader term including therein, the best utilization of its assets including the vacant land. This Court is conscious of the fact that a big chunk of Government land which is presently in the custodia legis of the Official Liquidator if not properly safeguarded and utilized for the pressing public needs on the other hand may lead to even encroachments by unauthorized people on such public land, further engulfing the Government and the public authorities in a chain of litigations. Therefore, it is always appropriate and suitable if the idle immovable property of the Government Company like big chunk of land, as is available in the present case, is best utilized for the larger public interest and therefore this Court does not see any impediment or valid objection against such revival of the Company and restoring the assets of the Company to its Management under the provisions of the Companies Act, while staying the winding up process permanently at this stage subject to the compliance of the solemn Undertaking given by the State before this Court. As far as a few of the workmen are concerned, the learned counsel for the workmen also fairly submitted that such workmen whose dues have so far not been settled because of litigation by them or otherwise, they should be given an opportunity to place their claim before the concerned Nodal Agency viz. KSIIDC or the Management of the Company itself when a proper Board of Directors is reconstituted by this Company or the State of Karnataka. The learned senior counsel appearing for the Applicant State of Karnataka has fairly agreed to this submission and accordingly the remaining workmen whose claims are still pending, along with their relevant evidence, can approach either the said Nodal Agency, KSIIDC or upon transfer of assets to the Management of the Company by the Official Liquidator to the duly constituted Board of Directors, whenever such assets and Management are handed over back to the Board of Directors of the Company. The aforesaid undertaking of the learned Senior counsel for the Applicant - State of Karnataka to utilize the land of 119.665 acres only for public purposes in the form of infrastructure development etc. only would include the following and therefore this Court also directs and enjoins upon the State to undertake thick afforestation and Tree Plantation work on the said land which will maintain the ecological balance and provide additional lung capacity and fresh air to the otherwise dying Garden City of Bengaluru. In view of the aforesaid, Company Application is allowed and the winding up order dated 03/08/2004 passed by a co-ordinate bench of this Court is stayed or sisted and kept in suspension sine-die and the recommendation of the BIFR dated 02/08/2002 forwarded to this Court for winding up of the Company is also stayed permanently subject to the further orders of this Court. The Official Liquidator may now take steps to handover the assets and records of the Company with the Status Report as soon as he is informed about the constitution of the Board of Directors by the Applicant - State of Karnataka, with the approval of this Court.
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