1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION rpa COMPANY PETITION NO. 42 OF 2010 ALONG WITH COMPANY APPLICATION (L.) NO. 170 OF 2010 In the matter of Section 433 and 439 of The Companies Act, 1956; P. S. Thankachan .. Petitioner. v/s. M/s. Bombay Pulp & Paper Mfg. Pvt. ltd. .. Respondents. .... Mr. A.K.J. Panicker i/b. Ajay Law Associates for Petitioner. None for the Respondents. .... CORAM : S. J. KATHAWALLA, J. DATE : APRIL 16, 2010. P.C. By this Company Petition the Petitioner has sought winding up of the Company M/s. Bombay Pulp & Paper Manufacturing Pvt. Ltd. (Company). 2. According to the Petitioner, an amount of Rs. 2 15,57,600/- is due and payable by the Company to the Petitioner. The Petitioner served a statutory notice on the Company dated 10th November, 2009. In reply to the same, the Company by a letter dated 4th December, 2009 stated that the Company is trying to raise resources for settlement of the dues as early as possible and requested the Petitioner to wait for some more time. 3. The Petitioner therefore filed the above Company Petition and served the same on the Company. However, the Company failed and neglected to appear before the Court. This Court, therefore, directed the office as well as the Petitioner to give notice to the Company informing the Company that the Petition is placed for admission on 16th April, 2010 when the Company may remain present either in-person or through an Advocate. In reply to the said notice, the Managing Director of the Company has addressed a letter to the Petitioner dated 13th April, 2010 with a copy to this Court, wherein he has stated that the Company is closed since the last 35 years and that they have lost everything financially and they have no staff in the office. He is sitting all alone and even the floor of the office is swept by him. He has further stated that he has no money to engage an Advocate 3 to represent him in Court. He, has stated that the dues/claims, if any will be amicably negotiated and settled. The Petitioner has therefore submitted that the Respondent Company is unable to pay its debts and therefore deserves to be wound up. 4. The learned advocate for the Petitioner has further submitted that in response to the statutory notice, the Company by its letter dated 4th December, 2009, has contended that the property of the Company is not released by the Court Receiver, High Court, Bombay. It is submitted that to the best of the Petitioner’s knowledge, the Court Receiver has now been discharged. It is submitted that in any event from the tenor of the letter written by the Managing Director of the Company, it appears that the Company has nothing left except its property and the Managing Director may dispose of the said property leaving the creditors/workers including the Petitioner high and dry. It is submitted that if the Managing Director had a bonafide problem, he could have appeared in person before this Court and explained the same, instead of trying to correspond with the Petitioner as well as this Court. It is, therefore, submitted that pending the hearing and disposal of the Petition, the Official Liquidator be 4 appointed as Provisional Liquidator of the Company, with all powers under the Companies Act, 1956 including the power to take charge of all its assets. 5. From the aforesaid facts, it is clear that the Company has admitted the claim of the Petitioner, but has not paid the same since the Company is unable to pay its debts. 6. The Company Petition is, accordingly, admitted and made returnable on 10th June, 2010, and is directed to be advertised. The Petitioner to advertise the Petition in two local newspapers, namely “Free Press Journal”, “Maharashtra Times” and “The Maharashtra Government Gazette”. The Petitioner shall deposit an amount of Rs.10,000/- with the Prothonotary and Senior Master towards the publication charges, within three weeks from today, with intimation to the Company Registrar failing which the Petition shall stand dismissed for non-prosecution. 7. I am also of the view that the Petitioner has made out a case for appointment of a Provisional Liquidator. Prayer (c) of the Company Petition is, therefore, granted. Company Application 5 (L) No. 170 of 2010 is, therefore, disposed of. The learned advocate for the Petitioner undertakes to have the Company Application numbered within one week from today. 8. The Advocate for the Petitioner is directed to forthwith forward a copy of this order to the Company at its registered address. [ S. J. KATHAWALLA, J. ]