Messrs. Sudarshna Wire Industries Pvt. Ltd. and Messrs. Reliance Capital Limited vs Messrs Sudarshna Wire Industries Pvt. Ltd.

Sanjay Karol, J.—This is a petition filed under the provisions of Sections 433, 434 and 439 of the Companies Act, 1956 (hereinafter referred to as The Act). Petitioner, Messrs. Reliance Capital Limited is seeking winding up of the respondent-company by the name of Messrs Sudarshna Wire Industries Pvt. Ltd. Notice in the petition was issued on 11.1.2008. The respondent chose not to contest and accordingly on 22.6.2011 was proceeded ex-parte. The petition was admitted on 20.9.2011. The petition was again advertised in accordance with the Company Code Rules, 1959. The respondent has yet not chosen to contest the same. Accordingly, on 24.5.2012, the petition was posted for hearing. The petitioner is a Company with limited liabilities, having its registered office at Navi Mumbai. The respondent is a private limited Company having its works and establishments within the territorial jurisdiction of this Court. To establish its industrial unit, the respondent entered into various agreements for availing facilities of loan with the State Bank of India, Chandigarh (hereinafter referred to as the Bank). Pursuant thereto loans were disbursed. However, consequent to serious defaults in repayments of the amounts so advanced by the bank and also several breaches of the terms and contractual obligations stipulated under the agreements on the part of the respondent-Company, proceedings were initiated by the bank for recovery of the amounts due. In this regard, an application was filed before the Debt Recovery Tribunal, Jaipur (Rajasthan) and in terms of order dated 16.6.2000, a sum of Rs. 96,48,374.17 paise alongwith interest was awarded in favour of the bank. The operative portion of the order reads as under:-

As such, the petitioner bank is entitled to recover an amount of Rs. 96,48,374.17 paise including costs from the respondents jointly or severally. The petitioner bank is also entitled to recover interest @ 18.75% per annum with quarterly rests on Rs. 75,85,891/- with respect to medium term loan and interest @ 16% per annum with quarterly rests on balance of Rs. 20,62,484/- of cash credit accounts.

Various notices were issued by the bank, calling upon the respondent to pay the decretal amount, but however without any fruitful result. Subsequently, vide agreement dated 30.3.2007, the bank assigned its debts in favour of the petitioner-Company. The said agreement is duly registered with the Sub Registrar, Assurances at Jaipur. Thereafter, petitioner served notice dated 30.4.2007 and legal notice dated 17.9.2007 u/s 434 of the Act, calling upon the respondent to pay the decretal amount which was never disputed by the respondent. After the expiry of statutory period of three weeks, petitioner filed the instant petition.

It is seen that in terms of the judicial order passed in favour of the petitioner, the respondent has to undisputedly pay a debt of a sum of Rs. 6.72 crores as on 30.3.2007. The respondent has chosen neither to dispute the debt, assail the judicial order nor contest this petition. There is no other equally efficacious remedy available with the petitioner.

Consequently, this petition needs to be allowed for the reason that the respondent-Company has not been able to pay its undisputed debts and that in the facts and circumstances of the case and background, it would be just equitable for the Company to be wound up. Ordered accordingly.

Under the facts and circumstances, the respondent-Company i.e. Messrs Sudarshna Wire Industries Pvt. Ltd., is ordered to be wound up. The Registry of this Court is directed to send a copy of this order to the Official Liquidator as also Registrar of the Companies where the respondent-Company is registered. The petitioner is also directed to file a certified copy of this order with the concerned Registrar within a period of 30 days from today. Further the Official Liquidator attached to this Court is directed to take over the assets and liabilities of the Company and defray the debt in accordance with law, including issuance of publication of notice of winding up in the daily newspapers i.e. The Tribune and Himachal Dastak, circulated in the State of H.P., as also the H.P. Rajpatra.

With the aforesaid observations, the present petition stands disposed of, so also the pending application(s), if any.