Kuldeep Singh vs Oriental Green Environment Ltd.
2002 Latest Caselaw 121 Del

JUDGMENT

Mukul Mudgal, J.

1. This petition has been filed by the petitioner praying for an order for winding up of the respondent company M/s Oriental Green Environment Limited having its registered office at "Oriental Towers", C-50, Community Centre, Naraina, New Delhi 110028.

2. According to the averments in the petition, the respondent company was incorporated under the Companies Act, 1956 on 24th February, 1997. One of the main objects of the company was to carry on business of plantation of all types of trees and plants for commercial, domestic, industrial and other purposes and to carry on the business of agriculture, horticulture, floriculture, sericulture, tissue-culture, pisciculture, forestry, poultry, fishing, farming and to develop resorts, green houses and other related activities.

3. The petitioner is one of the creditors of the respondent company. During the course of the business, the petitioner had deposited Rs. 18,900/-, with the respondent company with buy back facility in respect of which the respondent issued Certificate No. 385 dated 31.12.1997(Annexure-P/2) to the petitioner, clearly stating that the petitioner has the option to buy back the deposited amount after two years, three years and seven years. After the expiry of 2 years the petitioner

approached the respondent Company, requesting it to pay back an amount of Rs. 24,570/-. However, the respondent failed & neglected to pay the admitted amount to the petitioner. Thus the petitioner sent a statutory notice dated 14.8.2000 (An-nexure-P/3) under Section 434 of the Companies Act, claiming therein a sum of Rs. 24,570/- Along with interest @ 21% per annum. However, the respondent failed to make the payment of the admitted amount. A copy of the said notice along with A.D. Card is annexed with the petition as Annexure-P/4(Colly). Hence the present petition.

4. In the reply to the company petition, while admitting the liability towards the petitioner, the respondent had stated that the petitioner oped for option of 2 years buy back: However, due to the stringent policy of the Government at the relevant time & prohibition to continue, the Scheme resulted in a sever liquidity crunch to the respondent Company and hence the respondent is not in a position to pay the money as assured/committed and the respondent Company can only pay to the petitioner after a gap of 8 years. The respondent further denied its liability to pay the interest against the amount of Rs. 24,570/-.

5. On the basis of the above mentioned pleadings and averments the petitioner has prayed for an order for winding up the respondent company under the provisions of the Companies Act, 1956.

6. The respondent admits its liability towards the petitioner and stated before this Court that the respondent company is facing a financial crunch. Therefore, this Court admitted the petition and directed that the requisite citation should be issued in the Statement (English), Vir Arjun (Hindi) and the Delhi Gazette.

7. The petitioner has placed on record an affidavit showing that citation has been published in the newspapers as well as in the Gazette. Learned counsel for the respondent submitted that the statement of affairs will be filed within a week from today with the O.L. Since pursuant to the notice of the publication, none filed any affidavit in opposition, the prayer in the petition should be allowed and an order should be passed for winding up the respondent company.

8. I have considered pleadings and the averments in the petition, the materials placed on record and also the submissions made by the learned counsel for the petitioner. The respondent has not denied the averments in the petition or disputed the documents placed on record. I am satisfied that the respondent com pany is indebted to the petitioner to the tune of Rs. 18,900/- along with interest and that the respondent has neglected to pay the said sum even though the petitioner had served on the respondent a demand to pay the sum and that the respondent company is unable to pay its debts. Therefore the respondent company is liable to be wound up under the provisions of the Companies Act, 1956. This Court has the territorial jurisdiction to pass an order for the winding up of the respon dent company.

9. In the above circumstances, I hereby order that the respondent company be and is hereby wound up. The Official Liquidator attached to this Court is hereby appointed as the Liquidator of the Company. The Official Liquidator shall forthwith take into his custody and under his control all the properties and effects and the books and papers of the company. The Official Liquidator shall cause a sealed

copy of the order for winding up to be served upon the respondent company by pre paid registered post addressed at its registered office.

10. Formal order for winding up shall be drawn, signed and sealed by the Registrar of this Court as soon as possible and two certified copies thereof duly sealed shall be sent to the Official 1 liquidator. A certified copy of the order shall be served on the Register of Comapanies within 30 days.

11. The order for winding up shall be advertised by the petitioner in one issue each of the 'Statesman' (English) and 'Vir Arjun' (Hindi).

12. The Registrar shall forthwith send to the Official Liquidator notice of the order for winding up.

13. The Official Liquidator shall file his report: within six months from today.

14. The petition stands disposed of in the above terms.

15. List on 25.7.2002 for reporting compliance.