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In The Matter Of M/S Modi Export Processors Ltd. - COMPANY PETITION No. 7 of 1997  RD-AH 18314 (30 October 2006)
Court No. 30
COMPANY PETITION NO. 7 OF 1997
In the matter of
M/s Modi Export Processors Limited (In Liquidation)
Hon'ble Sunil Ambwani, J.
The company was wound up on 24.9.2004 on the ground that it is unable to pay its dues and has not carried out any business since 1983. It has no income other than lease rentals. The recall application is pending.
Reference, order dated 4.4.2006, a supplementary affidavit has been filed to the recall application, stating therein that the machineries of the company were shifted, as the company was suffering losses and it let out the building on lease rent of Rs. 9 lacs per month to Modi Rubber Limited. The company utilized the lease rent for payment of its dues to Punjab National Bank and workers' dues. The liability of the bank has been admitted only to the extent of Rs. 22 lacs.
It is stated that some job work was done by the company (In Liq.) since 1984-85 to 2004-05. The details of income from 1984-85 to 2004-05 given in the balance sheet and profits and loss accounts of the period, demonstrate that the company is not carrying out any business. Except lease rentals, it has no other income. It stopped realizing any amount from the sale proceed, the last of which was made only in 1995-96 for Rs. 77,345/-. In the year 2005, the income from job charges was only Rs. 1988/- whereas the administrative expense was Rs. 22, 92, 039/- and interest of Rs. 55, 83, 641/-.
The Bank, on the other hand, has filed supplementary counter affidavit stating that it has not received any payment from the company. The company has not given any particulars of the alleged payment. As per the records of the company in ordinary course of business verified by Shri S.K. Sharma, Manager, Punjab National Bank, Modi Nagar, Ghaziabad as on 31.6.2003, the amount recoverable from the respondent-company is Rs. 82, 27, 47, 583/-( Rupees eighty two crores twenty seven lacs forty seven thousand five hundred eighty three only), including interest upto 30.6.2003.
ShriV.B. Singh, Senior Advocate assisted by Ms. Kirtika Singh prays for some time to give reply to the affidavit. I am not inclined to grant any further time in the matter. The company has not established that it has carried out any business. It is apparent that the respondent company is treating the lease rentals to be personal income of the Ex Directors.
The company has shifted its plant and machinery to some other place for which the details of arrangement have not been disclosed.
Having regard to the facts and circumstances, let the matter come up again on 4.12.2006. In the meantime, entire lease rentals or any other incomes which the company has, shall be deposited with the Punjab National Bank, Modi Nagar, Branch Ghaziabad. The respondent-company is restrained from transferring and encumbering its assets in any manner whatsoever.
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