1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY PETITION NO.509 OF 2006 Board for Industrial and Financial Reconstruction ..... Petitioner V/s. M/s.Poddar Knitex Ltd. ..... Respondents WITH COMPANY APPLICATION NO.169 OF 2009 IN COMPANY PETITION NO.509 OF 2006 M/s.Podar Knitex Ltd. ..... Applicant V/s. Official Liquidator, High Court, Bombay. .... Respondent. Mrs.Ramakantha, Dy. Official Liquidator, present. Mr.S.K.Halwasia with Ms.S.S.Halwasia i/by M/s.Halwasia & Co., for the respondent. CORAM : S.J.VAZIFDAR, J. DATE : 13TH MARCH, 2009. P.C. 1. This petition comes up for final hearing. 2. The BIFR had forwarded an opinion to this Court for winding 2 up the Company. Based on this opinion, by an order dated 22-06-2006 the petition was admitted. The Official Liquidator was appointed as a provisional liquidator to take charge of the assets of the Company and directions were issued for advertising the petition. Notice was also issued under Rule 28(4) of the Companies (Court) Rules, 1959. An advertisement has thereafter, been issued in accordance with the said order dated 22-06- 2006. The question today is whether the final order of the winding up of the Company out to be passed or not. 3. It has been pointed out that the order of the BIFR was confirmed by the AAIFR. After the proceedings before the BIFR and the order of admission, there has been a substantial change in the circumstances. The petitioner had made a claim of about Rs.7.57 Crores against the New India Assurance Company Ltd. As the said amount was not paid, the company filed proceedings before the National Consumer Dispute Redressal Commission, New Delhi. The proceedings before the National Consumer Dispute Redressal Commission, preceded the BIFR proceedings. By an order and judgment dated 22-04-2005, The National Consumer Dispute Redressal Commission, allowed the company' s petition and directed the New India Assurance Company Ltd., to pay a sum of Rs.7,57,19,192/- with interest at 9% p.a. from 20-12-1994 and costs fixed 3 at Rs.25,000/-. The costs were payable to the National Consumer Dispute Redressal Commission Bar Association for meeting their expenses. 4. This order was confirmed by the Supreme Court vide its order dated 25-04-2006 with modification. The Supreme Court allowed the appeal filed by the New India Assurance Company Ltd., in part only, reducing the award of the Commission in a sum of Rs.1,40,00,000/- towards loss of profit to Rs.81,61,911/-. The Supreme Court further ordered the payment of interest at 9% p.a. from 28-12-1993 till payment. 5. It appears that even after this order, the amounts were not paid by the New India Assurance Company Ltd. Ultimately, by an order dated 07-12-2006, NCDRC recorded that the New India Assurance Company had deposited the amount in a Fixed Deposit Receipt with UCO Bank on 14-09-2006. The FDR was directed to be deposited with the Registrar of the Commission. The Company was permitted to withdraw the same by giving an undertaking that in case of any amount being found due and payable to any financial institution, the Company would pay the same to such financial institution. 6. Proceedings had been adopted by a consortium of banks led by ICICI Bank Ltd., including IFCI, IDBI. These three institutions had in turn assigned their dues to ARCIL. Another consortium of Canara Bank 4 and Bank of Baroda have also filed proceedings before the DRT. 7. Canara Bank and Bank of Baroda filed an affidavit dated 10- 11-2006 before the DRT, stating that their dues have been fully settled. It was contended by the Company before the DRT that the dues of ARCIL, as assignee of the said banks, had also been fully settled. By an order dated 19-01-2009, the DRT recorded that the ARCIIL had remained absent, as it had received the amount. Accordingly, by the said order dated 19-01-2009, the DRT disposed of the suit filed by the ARCIIL for non-appearance. Two of the financial institutions namely IDBI and IFCI who were applicant Nos.2 & 3 had filed an application for withdrawal of the recovery proceedings. As against them, the suit was disposed of. 8. It is further stated by the Company that the dues of the workers had been satisfied earlier. In this regard, reliance is placed on a letter dated 17-08-2001 issued by the President of the Kamgar Utkarsha Sabha, stating that the Company has settled all dues of the workers between June 2001 and August 2001 and that no dues of the workers are pending. The Company was requested to employ the said workers on priority in the event of it restarting its unit. 9. A certificate has been issued by the statutory auditors stating that all the dues of the unsecured creditors have been paid except 5 MSEB and MIDC in the sums of Rs.5,78,060/- and Rs.43,371/- respectively. The company undertakes to pay the said dues with interest, if any. 10. There are no other claims made by any third party. No party have appeared to either support or oppose this petition. In view of the aforesaid circumstances, it appears that there are no other creditors of the company secured or unsecured. 11. Further, the Company undertakes to pay any dues of any creditors in the event of it being found that amounts are due and payable by the Company to said creditors/creditor. The Company agrees that in that event, this undertaking shall be construed as an admission of the liability at this stage and a promise to pay the same. An undertaking to this effect shall be filed on an affidavit. The company further gives an undertaking that it does not intend to sale its immovable assets including the land. It is stated that the said land is to be utilized for restarting the activities of the company, albeit as part of a joint venture. The company also undertakes to employ/re-employ its employees if they so desire. The Official Liquidator and the company shall issue a notice to the Union and to the employees as per the record of the company within four weeks from today. The list of the employees shall be furnished by the Company to the 6 Official Liquidator forthwith. 12. In the circumstances, the petition is disposed of by the following order : - (a) The Company Petition is dismissed subject to what is stated hereinafter. (b) The company shall file undertakings on affidavit in this Court as directed above. (c) The dues of the MSEB and MIDC shall be paid in full. (d) The provisional liquidator shall stand discharged only upon a writing confirmation from the MSEB and MIDC that their dues have been fully satisfied or secured to the satisfaction of the Official Liquidator and on the Company filing the above undertakings and the payment of a sum of Rs.15,000/- which shall be credited to the General Fund of the Liquidator's Office. (e) Civil Application No.169 of 2009 therefore, does not survive and stands disposed of accordingly.