High Court of Judicature at Allahabad
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In The Matter Of M/S Sun Tanning Industries Pvt.Ltd. - COMPANY PETITION No. 12 of 1999  RD-AH 6935 (30 March 2006)
Company Petition No.12 of 1999
In the matter of
M/s Sun Tanning Industries Private Limited
Hon. Sunil Ambwani, J.
This company (in liq.) was wound up by this Court on 3.10.2005. Notices issued under Section 454 (5) of the Companies Act, 1956 for filing statement of affairs to the Ex-Directors namely Shri Balwant Rai Srivastava and Shri S.K. Singh, have vide office report dated 30.3.2006, returned back, so far as Shri Balwant Rai Srivastava with the remark that the addressee has left the house and for Shri S.K. Singh, notices have not returned back either delivered or undelivered.
Shri R.S. Mishra, learned counsel has filed three applications on behalf of Shri S.K. Singh, the Ex-Director of the company. In the first application he has made a prayer to recall the order dated 3.10.2005. In the second application a prayer has been made to hear the applicant before passing any order on merits and in third application he has attached statement of affairs. It appears that the Ex-Director has no idea of company law or he is deliberately trying to mislead the Court and is concealing the facts.
The Official Liquidator's Report No.16/2006 states that when the representatives went to take possession of the assets of the company, they found that U.P. Financial Corporation, Kanpur has sold out the entire land and building towards its dues after the possession was taken over by U.P. Financial Corporation on 5.9.2003 and that the entire plant and machinery has been auctioned by the Revenue Authorities of Unnao for recovery of dues of some other department.
It appears that the company has no existing assets and that in the facts and circumstances, there is no question to be determined whether the company is able to pay its dues or is commercially solvent.
The application dated 20.3.2006 for recalling the exparte order dated 3.10.2005 is as such dismissed as nothing has been disclosed to show that the company is commercially solvent and is able to pay its dues.
With regard to second application for hearing the Ex-Directors before passing any order, the prayer is allowed. The Court shall hear the counsel appearing for the Ex-Director before making any further order in the matter.
With regard to statement of affairs I find that the Ex-Director is trying to mislead the Court. He has made only one declaration that there is still some assets as Site No.2, Plot A-3, Road No.1, Leather complex, Unnav including plants and machinery. This statement of affairs is not in accordance with the statement of assets and liabilities as provided under the Companies Act, 1956 and Companies (Court) Rules, 1959.
Let a proper and correct statement of affairs giving entire details of assets and liabilities, and returns filed by the company be filed within two weeks, failing which the Court shall take cognizance of the offence under Section 454 (5) of the Companies Act and proceed in accordance with law for prosecuting the Ex-Directors.
List on 27.4.2006.
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