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Allahabad High Court · body

2016 DIGILAW 181 (ALL)

In The Matter of Uptron India Ltd. v. .

2016-01-13

PANKAJ MITHAL

body2016
JUDGMENT Pankaj Mithal, J. The company M/s Uptron India Ltd. made a reference before the Board for Industrial and Financial Reconstruction (in short 'BIFR') to declare it to be a sick industrial company in terms of Section 3(1)(c) of the Sick Industrial Companies (Special Provisions) Act, 1985 (in short 'SICA') wherein an operating agency was appointed to formulate a rehabilitation scheme. The proceedings remained pending before the BIFR for 16 years. Ultimately by an order dated 31.8.2010 the BIFR came to the conclusion that there is no option but to wind up the company as the company is incapable of working out any acceptable revival scheme which may enable it to run and discharge its financial obligations. The BIFR thus formed an opinion that it is just and equitable in the interest of justice that the aforesaid company which has been declared sick be wound up in accordance with Section 20(1) of the SICA. 2. It is on the above order/recommendation of the BIFR that the present winding up proceedings against the company were drawn by the Court. Notices were issued to the company vide order dated 12.4.1999 to show cause why the petition may not be allowed and the company be ordered to be wound up. The petition was admitted for consideration vide order dated 25.5.2011. 3. In the absence of any response from the company or its ex-directors, this Court on 15.7.2011 appointed the Official Liquidator attached to the Court as the provisional liquidator in exercise of power under Section 450 of the Companies Act, 1956 and he was directed to take possession of the properties of the company and prepare an inventory thereof. 4. At this stage, the Company through Sri Ashok Trivedi as counsel moved an application for recall of the order dated 15.7.2011. The said application for recall of the order dated 15.7.2011 was rejected vide order dated 17.10.2011. 5. During all these years, none of the Directors of the Company or its Managing Director has cared to come forward and to assist the Court in any manner. No scheme for rehabilitation of the company was filed and is pending consideration. No one has disputed the finding returned by the BIFR that the company is sick and is unable to carry its business any further and it is just and equitable that it should be ordered to be wound up. 6. No scheme for rehabilitation of the company was filed and is pending consideration. No one has disputed the finding returned by the BIFR that the company is sick and is unable to carry its business any further and it is just and equitable that it should be ordered to be wound up. 6. In view of the aforesaid facts and circumstances and looking to the fact that nothing substantial has been done by the company to improve its position since 1994 when the proceedings for declaring the company a sick industrial company were initiated, the Court is left with no option but to order for winding up of the company. 7. Accordingly, the company M/s. Uptron India Ltd. having its registered office at 10, Ashok Road, Lucknow is hereby ordered to be wound up. The Official Liquidator attached to the Court who has been appointed Provisional Liquidator is appointed as the Liquidator and is directed to proceed in the matter in accordance with law. The Ex-Directors/Managing Director of the company are directed to cooperate with the Official Liquidator and to file statement of affairs forthwith before the Official Liquidator and get their statements recorded under Rule 130 of the Company (Court) Rules, 1959. The Official Liquidator will prepare an inventory of all the assets or the immovable properties of the company and submit the said list before the Court on the next date. The Official Liquidator shall at least submit the list of the properties which are within his knowledge and of which possession has already been taken by him as reflected from the letter of the Managing Director of the company. The Official Liquidator shall also verify and clarify if the properties of the company in his possession situate in Govindpur/Telierganj/Monarco at Allahabad are one and the same or they are different and to whom the ownership of the same belongs. The Official Liquidator is also directed to move to the District Magistrate, Jaunpur for deployment of some security guards at the factory premises of the company situate in Jaunpur on which possession was taken by him as provisional liquidator. 8. List after a month on which date the affidavit filed on behalf of the Registrar, Motilal Nehru National Institute of Technology, Allahabad (paper No.A-32) and the O.L. Report No. Jud./17 of 2016 shall be considered.