THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY COMPANY PETITION No.136 of 2009 Date: 31.5.2010 Between: M/s.Classic Mashroom Ltd. Rep.by its Managing Director, 10-27-16, Kailash Metta, Visakhapatnam - 530003 Petitioner And M/s.Visakha Linings and Insulations, 10-43, Sunitha Complex, Beside Kanya Theatre, Gajuwaka, Visakhapatnam – 530026 Rep by its Managing Partner Sri R.Rama Raju. Respondent THE HON'BLE SRI JUSTICE B. SESHASAYANA REDDY COMPANY PETITION No.136 of 2009 ORDER: This company petition has been taken out under Sections 433 (e) (f) read with Section 434 of the Companies Act, 1956 for winding up of M/s.Classic Mashroom Limited-respondent. Notice before admission came to be ordered on 27.8.2009. Despite notice being served on the respondent, none appears on its behalf. The company petition came to be admitted on 27.11.2009 fixing the date of hearing as 28.12.2009. The petitioner was directed to take out paper publication in Eenadu Telugu Daily and Deccan Chronicle English Daily of Visakhapatnam Edition, indicating the date of hearing of the Company Petition as ‘28.12.2009’. Accordingly, the petitioner took out publication and filed proof of the same. Despite publication being effected in two leading papers, none appears to oppose the petition. The petitioner-company filed an affidavit of Sri R.Rama Raju in lieu of Chief Examination. 8 documents have been filed along with the chief affidavit. They are exhibited as Exs.A1 to A8. Perused the material brought on record and evidence of P.W.1 and Exs.A1 to A8. The respondent is a company incorporated under the provisions of Companies Act 1986 having its registered office at 10-27-16, Kailash Metta, Visakhapatnam-500003. The authorized share capital of the respondent- company is Rs.13,25,00,000/- divided into 1,32,50,000 equity shares of Rs.10/- each. The petitioner-company entered into agreement dated 1.4.1997 with the respondent-company for supply and applications of insulation for pipe lines in the respondent-company. The total value of the work is Rs.7,23,111/-. The petitioner- company completed the work in accordance with the agreement dated 1.4.1997. Ex.A1 is the work order No.13, dated 1.4.1997 issued by the respondent company. The total cost of insulation is arrived at Rs.7,23,111/-. Ex.A2 is the letter dated 3.6.2002 addressed to the respondent-company demanding payment of the amount. Ex.A3 is the letter dated 21.6.2002 wherein the respondent-company disputed its liability to the extent of Rs.4,66,742/- while admitting the outstanding amount to the extent of Rs.87,000/-. Ex.A5 is the letter dated 13.6.2005 addressed by the respondent company to the petitioner whereunder the respondent- company sought time for making payment. The evidence brought on record amply proves that the respondent company is unable to pay its debt and thereby it has become commercially insolvent. In the circumstances, I order for winding up of M/s.Classic Mashroom Limited-respondent. Accordingly, the Company Petition is allowed. Notice of the order for Widening up of M/s.Classic Mashroom Limited, shall be sent forthwith to the Official Liquidator in Form No.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 his custody or under his control all the properties and effects and the books and papers of the company and shall take necessary steps for that purpose. The order for winding up shall be drawn up in Form No.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 subrule (2) of Rule 111 and also serve true copy of the order on the Managing Director of the company by prepaid registered post. The order for winding up of the company shall be advertised by the petitioner in Form No.53 in English daily of ‘Deccan Chronicle’ and Telugu Daily of ‘Andhra Jyothi’, Hyderabad Editions, within 14 days. ___________________________________ JUSTICE B. SESHASAYANA REDDY Date:31.5.2010 mrb