- 1 - IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION COMPANY COMPANY COMPANY APPLICATION NO.374 OF 2008 APPLICATION NO.374 OF 2008 APPLICATION NO.374 OF 2008 IN IN IN COMPANY COMPANY COMPANY PETITION NO.790 OF 2007 PETITION NO.790 OF 2007 PETITION NO.790 OF 2007 Avi-Oil India (Pvt.) Ltd. ...Applicant vs. Quantum Equipment Co.Ltd.& Anr. ...Respondents Mr.Gaurang Mehta for the Applicant CORAM CORAM CORAM: A.S.OKA,J. A.S.OKA,J. A.S.OKA,J. DATE DATE DATE : APRIL 3,2008 : APRIL 3,2008 : APRIL 3,2008 P.C.: P.C.: P.C.: 1. Heard the learned counsel for the Applicant. Office noting shows that the Affidavit of service has been filed and the Respondents have been duly served with the notice. 2. My attention has been invited to the order dated 31st January 2008 passed in the Company Petition No.790 of 2007. The Respondent-company did not appear notwithstanding the service of notice. By the said order, this court has admitted the petition. 3. Company Application No.1023 of 2007 was taken out along with the Company Petition. By order dated 31st January 2008, the said application was permitted to be withdrawn with a liberty to take out a fresh application for same or similar other reliefs as may be advised. In terms of the liberty - 2 - granted by order dated 31st January 2008, the present application has been filed by the Applicant. The Applicant has annexed to the preset application a copy of last available annual accounts of the company for the financial year 2003-2004 on the file of the Registrar of the Companies. A copy of the said accounts have been annexed as Exh.E to the affidavit in support. 4. The learned counsel for the applicant has invited my attention to the balance sheet of the Respondent-company as of 31st March 2004. He has also invited my attention to the material averments made in the Affidavit in support. 5. As per the accounts of the company for the year 2003-2004 the shareholders funds are in the sum of Rs.5 lakhs and surplus as on 31st March 2004 is in the sum of Rs.4,16,264.-. The secured loans are in the sum of Rs.81,878.00 and unsecured loans are in the sum of Rs.6,96,958.54. The current liability as of 31st March 2004 is in the sum of Rs.63,52,000/-. The statement of accounts disclose that the fixed assets of the company are worth Rs.40,00,000/- The current assets are to the tune of Rs.34,93,000/-. and the investments are only in the sum of Rs.5,50,000/-. The statement of accounts disclose that the current liabilities exceed by a sum of Rs.23,00,000/- over the fixed assets in the sum of Rs.40,00,000/-. The equity base disclosed is only in the sum of Rs.5,00,000/- - 3 - 6. It appears that the business of the company is not yielding any profits and the company is not run on commercially viable lines. The company failed to file the accounts for the subsequent years with the Registrar of Companies. 7. There is no reply filed to the averments made in the Affidavit in support. 8. It must be noted that in the earlier company application 1023 of 2007, by order dated 5th March 2007, a limited ad-interim relief in terms of prayer clause (b) was granted which was extended while disposing of the said application. 9. Considering the aforesaid circumstances, the application must succeed and the same is accordingly made absolute in terms of prayer clauses (a) to (c). 10. Parties and Official Liquidator to act upon an authenticated copy of this order. JUDGE JUDGE JUDGE