THE HON’BLE SRI JUSTICE SESHASAYANA REDDY COMPANY PETITION Nos.176 and 177 OF 2010 COMMON ORDER: These two company petitions have been taken out under Section 433(e) and (f), read with Section 439 of the Companies Act, 1956, read With Rule 95 of the Companies (Court) Rules, 1959, seeking an order of winding up of the respondent company-Reddy’s Polymers Processing Limited. 2. More precisely, Shah Packaging is the petitioner in C.P.No.176 of 2010 and Elite Industries is the petitioner in C.P.No.177 of 2010. The respondent is a company listed under the Companies Act, 1956 and is engaged in the business of manufacturing Poly Propline and High Density Polyethylene consumer molded products, etc. The authorized share capital of the company is Rs.6.00 Crores and the subscribed share capital of the company is Rs.3,09,96,000/-. The petitioner in C.P.No.176 of 2010 is carrying on business under the name and style of Shah packaging as a proprietary concern and is engaged in the business of trading and import of plastic granules. The petitioner in C.P.No.177 of 2010 is a partnership firm carrying on business of trading and import of plastic granules having its office at Mumbai. Liability towards the petitioner companies came to be admitted by the respondent company. In response to the notices issued by the petitioner companies, the respondent issued certain cheques which came to be dishonored on presentation before the concerned banks. 3. The company petitions came to be admitted on 12.07.2011 and the petitioners were directed to notify the admission of the company petitions in daily newspapers namely “THE HINDU” (English daily) and “EENADU” (Telugu daily) newspapers. Accordingly, the petitioners carried out the publication and filed proof thereof. 4. Both the company petitions are clubbed and evidence is being recorded in Company Petition No.176 of 2010. P.W.1 is petitioner in C.P.No.176 of 2010 and P.W.2 is petitioner in C.P.No.177 of 2010. Exs. A-1 to A-33 are marked on behalf of the petitioners. The respondent did not adduce any evidence, either oral or documentary. 5. Heard learned counsel appearing for the petitioners and perused the evidence of P.W.1 and P.W.2. 6. Learned counsel appearing for the petitioners submits that the respondent company under Ex.A-14 reply letter dated 30.06.2010 and Ex.A-32 letter dated 30.06.2010 admitted its liability and having admitted the liability, the respondent company failed to repay the same and thereby, the respondent company has become commercially insolvent. 7. Perused the evidence of PW.1 and P.W.2 and Exs.A-1 to A-19. Ex.A-14 and Ex.A-32 are the reply letters dated 30.06.2010 from the respondent company. Under the said letters, respondent company admitted its liability. 8. The evidence of P.W.1 and P.W.2 and the documents Exs.A-1 to A-33 brought on record clearly establish that the respondent company having admitted the liability, neglected to pay the same and thereby it has become commercially insolvent. 9. Accordingly, both company petitions are allowed ordering the winding up of the respondent company- Reddy’s Polymers Processing Limited. Notice of the order for winding up of the Reddy’s Polymers Processing Limited, shall be sent forthwith to the Official Liquidator in Form 50 under Rule 109 of the Companies Court Rules, 1959, enclosing a copy of the petition and affidavit filed in support of the petition. Pursuant to Rule 114, the Official Liquidator shall forthwith take into the custody or under his control, all the properties and effects and the books and papers of the respondent - company and shall take necessary steps for that purpose. The order for winding up shall be drawn up in Form 52 and two certified copies thereof shall be sent as per Rule 111 to the Official Liquidator. The Official Liquidator shall cause a sealed copy of the order served on the company as required by sub-rule (2) of Rule 111 and also serve true copy on the order of the Managing Director of the company by pre-paid registered post. The order for winding up of the company shall be advertised by the petitioner in Form 53 in all editions of “THE HINDU” English daily newspaper and “EENADU” Telugu Daily Newspaper within fourteen days. The petitioner in each of the petitions shall deposit Rs.20,000/- with the Official Liquidator towards initial expenses within four weeks. ___________________________ SESHASAYANA REDDY, J November 22, 2011 sp THE HON’BLE SRI JUSTICE SESHASAYANA REDDY COMPANY PETITION No.176 & 177 OF 2010 22nd November, 2011 SP