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Judgment
Swatanter Kumar, J.—Company Petition No. 82 of 1998 has been filed by Bansal Trading Company with a prayer that Chhattar Industries Limited be ordered to be wound up as it is unable to pay its debt and even otherwise in the facts and circumstances of the case, it is equitable that the respondent-company should be wound up. In view of the circumstances stated hereinafter, it would not be necessary to go into the details giving rise to this petition.
It is suffice to note that notice why petition be not admitted was issued on April 16, 1998. The affidavit of publication by substituted service by insertion in the Tribune on July 13, 1998, has been filed in the court. However, in spite of service, nobody appears for the respondent company. Consequently, this petition was reserved for orders on July 23, 1998.
Company Petition No. 145 of 1998 came up for hearing and direction on July 16, 1998. This petition has been registered on the basis of the recommendation received from the Board for Industrial and Financial Reconstruction dated April 30, 1998, in respect of Chhattar Industries Limited, wherein it is recommended that it is just and equitable that Chhattar Industries Limited should be wound up and as such it has forwarded its recommendation to this court.
Under the provisions of section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985, the recommendations of the Board for Industrial and Financial Reconstruction (hereinafter referred to as "the Board") are normally to be accepted by the court as it is a specialised body and a company would have to be wound up in accordance with the provisions of the Companies Act, 1956.
Company Petition No. 145 of 1998 was being heard along with Company Petition No. 82 of 1998.
The notices sent by learned counsel for the petitioner in Company Petition No. 82 of 1998, under sections 433 and 434 of the Companies Act, were returned with the remarks that the office of the respondent-company is lying closed for a long time and it was not possible to serve them. Similar was the report on the notices sent through registered acknowledgment due. After the order of this court, service was effected by publication in the Tribune dated July 13, 1998. However, as earlier noticed, in spite of the service by publication, nobody appears before this court to defend this petition. Furthermore, the recommendations of the Board which have been forwarded to this court and as contained in the final order dated February 13, 1998, were made in the presence of the representative of the respondent-company and they were heard in response to the notice of winding up by the Board. In any case they must and ought to be aware about the proceedings arising therefrom.
In the aforestated circumstances, Company Petition No. 145 of 1998, is allowed accepting the recommendations of the Board as contained in the order dated April 30, 1998, which remains unrebutted and unopposed. It is ordered that Chhattar Industries Limited be and is hereby wound up under the provisions of the Companies Act, 1956.
As Company Petition No. 145 of 1998, which is registered on the recommendation of the Board having wider magnitude and scope, is allowed, Company Petition No. 82 of 1998 is disposed of, at this stage, with liberty to the petitioner to revive the same in the event the winding up order, upon recommendations of the Board, is recalled or is withdrawn.
Consequently, both the company petitions are disposed of.