TMI Blog1968 (5) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... ,92,283-50 np. The main object for which the Company was established as per the Memorandum of the Company was to carry on the business of the proprietors, Managers and Agents of Theaters, palaces and balls, Cinematographic shows and exhibitions, Talkie houses, concerts dancing, lectures, public meetings musical dramatic or variety performance of every description and all kinds of public and private entertainments and in particular to provide for staging of dramas or plays and to let the premises of the Company to be used for such other purposes as may seem expedient. The Company was very irregular in the matter of filing the statutory returns and hence the Company and its Directors were prosecuted for the years 1957.61 for defaults in submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrespondence in support of this contention. Regarding the assets he stated that the Company being a Film Enterprise, the only tangible assets in which its capital can be invested is pictures which like other tangible assets is liable to depreciation year after year at a certain rate. Although the technical residual value of a picture (after writing off depreciation at the prescribed rate year after year) be shown as nil in the Balance Sheets, the picture may still exist and be capable of producing handsome incomes. In the circumstances, he contested the averments made in the petition that the paid-up capital amounting to ₹ 2,92,283-00 is already lost. 3. He also strongly contested the allegation that the Company was not in a positi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not appear to be serious in carrying on its business and that it is in a moribund state and there is no hope of recovery from its deplorable financial position. In this view of the matter he ordered the winding up of the Company. 6. The audit reports for the years ending 1957 to 1962 and the reports of the Directors for the same period are on record and have been marked as Annexures. The audit report for each of these years shows that during the years the Company had not carried on its business. In the Directors report for each of the years it is stated that. The Directors endeavors at revival of the activities of the Company have proved of no avail and the prospects of re-organisation look as gloomy as before. One of the signat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to be commenced he should pass orders for winding up of the Company. It may be said straight away that no explanation has been offered by the Company for not carrying on any business from 1957 to 1962. Some letters relating to the period subsequent to 1962 had been filed with a view to show that it is making efforts to carryon the business. These documents have been examined at some length by the learned Judge and he found that the letters disclosed that in one or two cases some negotiations were started either for production of a feature film or for the sale of the film Sri Jagannath but that these negotiations were not further pursued. The learned Judge therefore came to the conclusion that there as no hope of recovery from the deplor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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