COMP/213/2007 1/4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD COMPANY PETITION No. 213 of 2007 For Approval and Signature: HONOURABLE MR.JUSTICE K.A.PUJ Sd/- ====================================== 1. Whether Reporters of Local Papers may be allowed to see the judgment ? YES 2. To be referred to the Reporter or not ? NO 3. Whether their Lordships wish to see the fair copy of the judgment ? NO 4. Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? NO 5. Whether it is to be circulated to the civil judge ? NO ====================================== BOARD FOR INDUSTRIAL & FINANCIAL RECONSTRUCTION, - Petitioner Versus MANAGING DIRECTOR, M/S MAGNUS RUBBER INDS. LTD., & 5 - Respondents ====================================== Appearance : BOARD OPINION for Petitioner. MR HM PARIKH for Respondent No. 1. GOVERNMENT PLEADER for Respondent No. 2. NOTICE SERVED for Respondents : 3 - 4. None for Respondents : 5 - 6. ====================================== COMP/213/2007 2/4 JUDGMENT CORAM : HONOURABLE MR.JUSTICE K.A.PUJ Date : 09/05/2008 ORAL JUDGMENT 1. The Registrar of Board for Industrial and Financial Reconstruction, New Delhi has forwarded opinion of the Board to the Registrar of this Court under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 stating that it is just and equitable that Messrs Magnus Rubber Industries Limited be wound up. Based on this opinion the Registry has registered the matter as Company Petition No.213 of 2007. 2. This Court has issued notice to respondent Nos.1 to 4. Notice was duly served. Mr. H.M. Parikh, learned advocate appears on behalf of respondent No.1 Company. However, he could not defend the Company from being wound up. 3. The Court admitted the petition on 26.02.2008 and the Official Liquidator attached to this Court was appointed as the Provisional Liquidator of the Company. He was directed to take over possession of the assets of the Company after giving intimation to the Ex-Directors of COMP/213/2007 3/4 JUDGMENT the Company. He was also directed to issue public advertisement in two newspapers, namely, “Indian Express” and “Loksatta-Jansatta” - both Ahmedabad editions indicating therein the date of final hearing on 26.03.2008. Publication of advertisement in the official Gazette was dispensed with. 4. Pursuant to the said order dated 26.02.2008, the Official Liquidator has taken over possession of the assets of the Company after giving intimation to the Ex-Directors of the Company. The Official Liquidator has also issued public advertisement in two newspapers, namely, “Indian Express” and “Loksatta-Jansatta” - both Ahmedabad editions on 05.03.2008. A copy of the newspaper clipping was annexed along with his report filed before the Court on 16.04.2008. Despite this advertisement, no one has come forward to oppose the winding up petition. On the contrary, Mr. H.M. Parikh, learned advocate appearing on behalf of respondent No.1 Company has reiterated his submission that Company is not in a position to defend this petition. 5. Having regard to the facts and circumstances of the case and considering the opinion of the BIFR as well as the COMP/213/2007 4/4 JUDGMENT fact that the respondent Company has lost its financial substratum and failed to discharge its liabilities towards its Creditors, namely, Secured and Unsecured and Statutory Creditors, there is no other alternative but to pass a final winding up order. Even otherwise, the Official Liquidator is in charge of the assets of the Company in liquidation and the Company has stopped its business activities since long. It is, therefore, just and equitable for this Court to pass final winding up order in this petition. Accordingly, respondent No.1 Company is hereby ordered to be wound up. The Official Liquidator appointed as Provisional Liquidator vide order dated 26.02.2008 is now appointed as the Liquidator of the Company and he will discharge all his powers conferred on him under the provisions of the Companies Act, 1956. 6. Subject to the aforesaid direction and observation, this Company Petition is accordingly disposed of. Sd/- [K. A. PUJ, J.] Savariya