Konark Jute Ltd vs Unknown
2022 Latest Caselaw 5674 Ori

                 IN THE HIGH COURT OF ORISSA AT CUTTACK

                             CMPAT No.36 of 2001
                             (Through hybrid mode)

            1. Konark Jute Ltd.                    ....             Appellant
            2. Govt. of Orissa (Industrial
            Development Corporation)
            3. ICICI
            4.IFCI
            5. Indian Overseas Bank
            6. Indian Bank
                                                Ms. Pami Rath, Advocate
                                                   Ms. P. Roy, Advocate
                             Mr. S. Biswal, Advocate (M.C. No.2 of 2021)
                                       -versus-




                      CORAM: JUSTICE ARINDAM SINHA
                                       ORDER

18.10.2022 Order No.

139. 1. Ms. Rath, learned advocate appears on behalf of Industrial Development Corporation of Odisha Limited (IDCOL), who was the holding company in respect of its subsidiary in liquidation, sold away. She relies on judgments regarding interpretation of sub-section (2) in section 20 of Sick Industrial Companies (Special Provisions) Act, 1985. Judgment of the Supreme Court in V.R. Ramaraju v. Union of India reported in (1997) 89 Comp Cases 609, which confirmed judgment of the Madras High Court in J.M. Malhotra v. Union of India reported in (1997) 89 Comp Cases 600 (Mad). She also relies on view taken by a Division Bench of Calcutta

// 2 //

High Court in Debabrata Mukherjee v. Dunbar Mills Ltd. reported in (2002) 109 Comp Cases 710 (Cal).

2. She submits, though the sub-section uses the word 'shall' regarding order in winding up on basis of opinion of the Board but the provision says the High Court 'may' proceed to cause proceeding for winding up, thereby requiring the Court to also adjudicate on whether or not the company should be wound up.

3. Ms. Roy, learned advocate appears on behalf of the purchaser (Bhatia OSL Washeries and Minerals Ltd. (BOSLWML) and prays for adjournment on absence of her leader. She prays for two weeks. Mr. Biswal, learned advocate appears on behalf of applying workmen.

4. List on 1st November, 2022 under same heading.

(Arindam Sinha) Judge

Sks