TMI Blog2019 (7) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... ) : Mr. Anuroop Singhi For the Respondent(s) : Mr. Gaurav Sharma Saraswat, Mr. Nishant Vyas JUDGMENT This appeal under Section 483 of the Companies Act, 1956 read with Rule 134 of the High Court Rules, 1952, has been preferred by applicant/appellant Hardeep Singh Dhawan, challenging the order dated 30.08.2018, by which his application for recall of the order dated 18.07.2003 has been dismissed by learned Company Judge on the premise that no reasons have come forward for delay in filing such application. Mr. Anuroop Singhi, learned counsel for the applicant/appellant, submitted that petitioner/respondent M/s. Ispat Industries Limited, a company registered under the Companies Act, 1956, filed a petition on 17.03.1998 under Sections 433(E), 434 and 439 of the Companies Act, 1956, for winding up of M/s. Team Metals Private Limited. The said petition was admitted on 05.04.2002. The date of hearing of the windingup petition was published in a daily newspaper Hindustan Times (Jaipur Edition). Since no one appeared to oppose or support the petition, the winding-up order was passed by this Court on 18.07.2003. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng before the Company Court. Mr. Anuroop Singhi, learned counsel, in support of his arguments, cited the judgments of the Gujarat High Court in Niranjan B. Shah Vs. Suresh Steel Corporation and Others 2011 (162) CC 100 , Bombay High Court in Shekhar Electricals Vs. Falcon Retreat Pvt. Ltd. - 2018 (93) Taxmann.com 344 and Om Prakash J. Mehra Vs. O.L. of M/s. Surlex Diagnostic Ltd. - 2012 (27) Taxmann.com 153 , and that of Karnataka High Court in M.R. Khan Vs. Maldini Yarn Pvt. Ltd. - 2014 (48) Taxmann.com 81 , and argued that various High Courts have allowed recall applications and recalled the winding-up order even as many as 33 years after winding-up order, holding that a winding-up order once made, can be revoked or recalled. The learned Company Judge ought to have allowed recall application. The delay, if at all, stands duly explained as the winding-up order dated 18.07.2003 was ex-parte and the dues of the unsecured creditor were duly settled. The appellant is the original promoter and thus cannot be deprived of its effort and property. No prejudice would be caused to the subsequent buyer as the amount of bid submitted by the subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r has to settle the claims of (a) Assistant Commissioner, Central Goods and Service Tax Division of ₹ 1,44,82,019/- (b) Assistant Commercial Tax Officer, Bhiwadi of ₹ 26,59,072/-, and (c) Jaipur Vidyut Vitran Nigam Limited, Bhiwadi of ₹ 2,06,08,728/-. Since the consent of the aforesaid creditors of the company have not been produced and only empty assurance has been given by the applicant/appellant that he will clear all their dues in future, the order cannot be recalled. Learned counsel in support of his argument has cited a judgment of the Bombay High Court in SP Capital Financing Ltd., Vs. Bagade (India) Engineering Ltd. - 2002 (109) Co.Cases 657 (Bombay) , that of Karnataka High Court in Kirtivan D. Kotian Flat BG Vs. Mohan Singh Proprietor M/s. Mohan Engineering (2015) 0 Supreme (Kar) 53 , that of Delhi High Court in Registrar of Companies Vs. Cyber Space (2014) 0 Supreme (Del) 193 . Mr. Nishant Vyas, learned counsel for respondent no.3, has opposed the appeal and submitted after passing of the winding-up order on 18.07.2003, the Official Liquidator took possession of the assets of the company in liquidation and after getting the due v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easons have been given in the aforesaid application, although it may be a matter for consideration by the learned Company Judge whether or not, the reasons were sufficient and justified to recall the order. Those very reasons have been reiterated by the applicant/appellant before us in the present appeal. The reasons are heart and soul of any judicial determination, in absence of which the order cannot survive. A Judge, who decides an issue in one or the other way, is required to disclose his mind and give the reasons to enable not only the superior court but also the litigating parties as what weighed with him in deciding the matter the way he did, otherwise they would remain unaware of the premise on which decision of the Court is founded. Therefore, it is always necessary for the learned Presiding Judge to disclose his mind, even if not in details, at least briefly. The Supreme Court in Sant Lal Gupta Others Vs. Modern Cooperative Group Housing Society Ltd. Others (2010) 13 SC 336 , while quoting its earlier judgment in State of Rajasthan Vs. Sohan Lal (2004) 5 SCC 573 , in para 27 of the report, held as under:- 27. It is a settled le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court while disposing of a writ petition under Article 226 of the Constitution of India. In paragraph 14 of the report, the Supreme Court observed as follows:- 14. It is a cardinal principle of rule of law which governs our policy that the court including Writ Court is required to record reasons while disposing of a writ petition in order to enable the litigants more particularly the aggrieved party to know the reasons which weighed with the mind of the court in determining the questions of facts and law raised in the writ petition or in the action brought. This is imperative for the fair and equitable administration of justice. More so when there is a statutory provision for appeal to the higher court in the hierarchy of courts in order to enable the superior court or the appellate court to know or to be apprised of the reasons which impelled the court to pass 7 1986 (4) SCC 31 the order in question. This recording of reasons in deciding cases or applications affecting rights of parties is also a mandatory requirement to be fulfilled in consonance with the principles of natural justice. It is no answer at all to this legal position that for the purpose of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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