TMI Blog2022 (12) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... ntingent and prospective liabilities of the company. Since the matter is settled between the petition creditor and the appellant company and that settlement has been placed on record and no one has raised objection against recalling the windup order and since dues of the secured creditor have already been satisfied, no useful purpose would be served keeping alive the winding up order. Winding up a company is a last resort. Every effort should be made to ensure that the company revives and business of a company continues in accordance with law. Operation of a company also generates employment. But, for the fact that the appellant was set ex parte there was no substantial material to show that the financial position of the appellant was so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner filed Company Petition No.50 of 2014. 3. In C.P. No. 50 of 2014, notices sent to respondent returned unserved. Court permitted the petitioner to take out substituted service by publishing in two daily newspapers. Even after publication of notice in two daily newspapers, no appearance was entered for respondent. The learned single Judge has adjourned the petition to enable respondent to enter appearance, but to no avail. Though Company Petition was admitted on 27.10.2014, but deferred publication of advertisement only to enable respondent to pay the due amounts. On 18.11.2014, Court permitted the petitioner to carry out publication with regard to admission of Company Petition in two newspapers and accordingly the same was publis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te. He therefore prays to set aside the ex parte order. 7. It is further contended that the amount borrowed from Union Bank of India was also cleared and that there are no more liabilities. 8. According to Official Liquidator, consequent to winding up order he had issued notice under Sections 454 and 456 of the Act to the Ex-Directors of the respondent-company to file statement of affairs to handover all the assets, books and records of the company, but they failed to respond. Therefore, Official Liquidator filed application under Sections 454(5) and 454(5A) of the Act against Ex-Directors in the Company Court. The Ex-Directors have not filed statement of affairs so far. 9. On 09.09.2015, when officials of Official Liquidator went ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he orders of this Court. Insofar as Official Liquidator is concerned, matter stands as it was. 13. However, two important developments required to be noticed. Firstly, the dispute with the petitioner is resolved and his dues are cleared. Thus, the genesis leading to this Court ordering winding up of the company and appointing Official Liquidator does not survive any more. Secondly, according to respondent-company, there was outstanding liability only with Union Bank of India and its loan account was regularized as per OTS and there are no other creditors. As noticed above, the Official Liquidator has not received any other claims in the last seven years. There appears to be no other claim against respondent-company. 14. It is appropri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt has necessarily to see whether the scheme contemplates revival of the business of the company, makes provisions for paying off creditors or for satisfying their claims as agreed to by them and for meeting the liability of the workers in terms of Section 529 and Section 529-A of the Act. Of course, the court has to see to the bona fides of the scheme and to ensure that what is put forward is not a ruse to dispose of the assets of the company in liquidation. 17. Since the matter is settled between the petition creditor and the appellant company and that settlement has been placed on record and no one has raised objection against recalling the windup order and since dues of the secured creditor have already been satisfied, no useful pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
