TMI Blog1933 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... mji on behalf of Mr. Leete, alleged creditors of the company, have appeared and supported the prayer for the compulsory winding up. The company was incorporated on the 4th October, 1929 with the object of promoting the art and science of flying, imparting instruction to its members and others in aeronautics and providing facilities for flying and housing of aircraft. It has no share capital but is a company limited by guarantee under the provisions of section 7 of the Indian Companies Act, each member having undertaken to contribute to the assets of the company, in the event of its being wound up, a sum not exceeding Rs. 25/- for payment of its debts and liabilities. The number of members of the company is stated to be over 300, and it appears to have received considerable assistance from Government at least in the earlier years of its existence. By an agreement dated the 1st of April 1930 (Exhibit P. 1) entered into between the Secretary of State for India in Council and the company, the Secretary of State agreed (1) to provide Rs. 27,600/- for the purchase of two light aeroplanes, (2) to pay Rs. 15,000 towards the purchase and erection of a combined hangar and workshop at L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chine but was spent on effecting repairs to the other two machines and in paying off the salary and allowance of the staff. With regard to the insurance money for the other two planes, counter claims are stated to have been put in by the Company and Government, and pending the settlement of these disputes the Insurance Company has not made payment to either party. It is common ground between the parties that since the crash of the third machine in April or May 1932 no flying has been done in the Club, nor has it had any pilot or technical staff for several months. It is admitted by Mr. Gauba that the company has not issued a balance-sheet after the 30th of June 1931, though under the law it is obligatory on every limited liability company to get prepared and issued to every member a duly audited balance-sheet at least once in every year and at intervals of not more than fifteen months. Mr. Gauba has explained that a balance-sheet for the half year ending the 31st December, 1931, was prepared and was audited, but that it was not circulated to the members or placed before the general meeting held on the 29th of February, 1932, as disputes had arisen with Government relating to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimants have informed Government that in spite of repeated demands they had not been able to obtain payment of their dues. One of these claimants is the Burma Shell Oil Co., Ltd., and Mr. Gauba has admitted that the Club is indebted in the sum of Rs. 2,458-10-0 to this company for petrol and oil supplied up to May, 1932. It is amply proved by the affidavits of Messrs. Redman and McCanlis and other evidence on the record that the Burma Shell Oil Co. served a formal notice of demand on the club in accordance with the provisions of section 163( a ) of the Act but that nothing has been paid up to this day. It is clear from what has been stated above that the company is not functioning at present, that its affairs are in a moribund condition and that there are no prospects of the work being resumed in the near future. Indeed, Mr. Gauba who alone of all the three hundred members has opposed the-petition frankly admitted in the statement which he made before me on the 3rd February, 1933 that without receipt of the subsidy from Government for the year 1932-33 it would not be possible for the Club to restart flying. He has, however, urged that the petition for winding up has not been m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or winding up has not been made in good faith and that the real object of Government is to escape liability for payment of the grants for 1932-33, or to put pressure on the Club to give up its claim against the Insurance Company for the amount due by reason of the destruction of the second and the third aeroplanes. Mr. Gauba finally contended that the Club has got sufficient assets in the form of arrears of subscriptions, etc., recoverable from its members, and the claim against the insurance company and that if this petition is dismissed these amounts will be realised and payments made to the creditors. But, as has been stated already, the claim against the insurance company is a disputed one; the members have not paid their dues for several years and do not appear to be taking any interest in affairs of the Club, and further, it is doubtful that the amount of arrears if and when realised, will be sufficient to meet all the liabilities. But even if it be assumed that the Club has got a valid claim to recover the insurance money and the members are likely to pay voluntarily the full amount due by them, this is no answer to the petition. It is settled law that what the Court has t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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