{"id":192921,"date":"2010-01-29T00:00:00","date_gmt":"2010-01-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/appearance-vs-4-today-on-29-january-2010"},"modified":"2017-09-28T04:25:59","modified_gmt":"2017-09-27T22:55:59","slug":"appearance-vs-4-today-on-29-january-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/appearance-vs-4-today-on-29-january-2010","title":{"rendered":"Appearance : vs 4 Today on 29 January, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Appearance : vs 4 Today on 29 January, 2010<\/div>\n<div class=\"doc_author\">Author: K.A.Puj,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nCOMP\/36\/2004\t 1\/ 8\tJUDGMENT \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nCOMPANY\nPETITION No. 36 of 2004\n \n\nWith\n \n\nO.J.\nCIVIL APPLICATION NO.218 OF 2009\n \n\nIn\n \n\nCOMPANY\nPETITION No. 36 Of 2004\n \n\nWith\n \n\nOFFICIAL\nLIQUIDATOR  REPORT NO.111 Of  2009\n \n\nIn\n \n\nCOMPANY\nPETITION No. 36 Of  2004\n \n\n \n\n\n \n\nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE K.A.PUJ  \n======================================\n<\/pre>\n<p><span class=\"hidden_text\">1<\/span><\/p>\n<p>Whether<br \/>\n\t\t\tReporters of Local Papers may be allowed to see the judgment ?<br \/>\n\t\t\tYES<\/p>\n<p><span class=\"hidden_text\">2<\/span><\/p>\n<p>To<br \/>\n\t\t\tbe referred to the Reporter or not ?No<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p>Whether<br \/>\n\t\t\ttheir Lordships wish to see the fair copy of the judgment ? No<\/p>\n<p><span class=\"hidden_text\">4<\/span><\/p>\n<p>Whether<br \/>\n\t\t\tthis case involves a substantial question of law as to the<br \/>\n\t\t\tinterpretation of the constitution of India, 1950 or any order<br \/>\n\t\t\tmade thereunder? No<\/p>\n<p><span class=\"hidden_text\">5<\/span><\/p>\n<p>Whether<br \/>\n\t\t\tit is to be circulated to the civil judge?No<\/p>\n<p>======================================<\/p>\n<p>ALTA<br \/>\nLEASING &amp; FINANCE LTD.\n<\/p>\n<p>Versus<\/p>\n<p>VAJRA<br \/>\nBEARINGS LTD.\n<\/p>\n<p>======================================<\/p>\n<p>Appearance :\n<\/p>\n<p>MR<br \/>\nZUBIN F BHARDA for Petitioner<br \/>\nMR VISHWAS K SHAH for Respondent<br \/>\nCompany<\/p>\n<p>MR.K.M.\n<\/p>\n<p>PARIKH  for Bank<\/p>\n<p>MR.\n<\/p>\n<p>J.S. JADAV  for O.L.\n<\/p>\n<p>====================================== <\/p>\n<p>CORAM<br \/>\n\t\t\t:\n<\/p>\n<p>HONOURABLE<br \/>\n\t\t\tMR.JUSTICE K.A.PUJ<\/p>\n<p>Date<br \/>\n: 29\/01\/2010 <\/p>\n<p>ORAL<br \/>\nCOMMON JUDGMENT <\/p>\n<p>1\t\tHeard<br \/>\nMr.  Zubin F. Bharda, learned Advocate, for the petitioner, Mr.<br \/>\nVishwas K. Shah, learned Advocate for the respondent   Company,<br \/>\nMr.  K.M. Parikh, learned Advocate, for the  Anyonya Cooperative Bank<br \/>\nLimited and Mr. J.S. Yadav, learned Advocate for the  Official<br \/>\nLiquidator.\n<\/p>\n<p>2\t\tThe<br \/>\npetitioner has filed this petition  for winding up of the respondent<br \/>\nCompany  for its failure to discharge its liabilities. The petition<br \/>\nwas Admitted on 11.08.2004 and order of advertisement was passed on<br \/>\nthe same day. The said order was complied with  and advertisement was<br \/>\npublished  in two newspapers.   Pursuant to the said advertisement,<br \/>\nAffidavit  of claim  was lodged on behalf of  Anyonya Cooperative<br \/>\nBank Limited on 09.09.2004.  This Court, thereafter, has passed a<br \/>\ndetailed Order on 11.05.2009, appointing the Official Liquidator as<br \/>\nProvisional Liquidator and directing  the Managing Director    of the<br \/>\nrespondent company to file a Statement of Affairs  and to give all<br \/>\nnecessary details with regard to the properties of the Company  and<br \/>\nalso the machineries  which are lying at Rajkot.   The Official<br \/>\nLiquidator was also directed  to file  his Report  before the Court.<br \/>\nIt was also made clear in the said order that during the pendency of<br \/>\nthis petition, the respondent company was restrained from<br \/>\ntransferring any of its assets  and since the Bank has  taken the<br \/>\npossession,  if the said Bank intends to transfer and\/or sell the<br \/>\nassets of the respondent company, the same  should be done in<br \/>\nconsonance with the Official Liquidator and all necessary details<br \/>\nrelating to such a transaction shall be placed before this Court.\n<\/p>\n<p>3\t\tBefore<br \/>\nthe winding up order  is passed, an objection was raised by  the<br \/>\nrespondent company that  the Reference is pending before the BIFR<br \/>\nand, hence, this Court should not proceed with the  winding up<br \/>\nproceedings.  It is further pointed out on behalf of the Anyonya<br \/>\nCooperative Bank Limited that the proceedings were initiated under<br \/>\nSection-13(4) of the SARFAESI Act and constructive possession  of the<br \/>\nproperty  of the Company was taken away  by the Bank. The proceedings<br \/>\nbefore the BIFR, therefore, stand abated.  This proposition canvassed<br \/>\non behalf of the Bank was objected to  by the Respondent Company  on<br \/>\nthe grounds that  before the proceedings under the SARFAESI Act have<br \/>\nbeen initiated against the respondent company, the company has been<br \/>\ndeclared as sick industrial company, by an order of the BIFR on<br \/>\n14.11.2006 and, hence,   the proceedings under the SICA  are not at<br \/>\nthe stage of  Reference.    In support of this contention, reliance<br \/>\nis placed  on the decision of the Orissa High Court in the case of<br \/>\nNOBLE  AQUA PVT LTD  &amp; ORS  vs. STATE BANK OF INDIA &amp;<br \/>\nORS., reported in  AIR 2008 Orissa 103. This<br \/>\ncourt, therefore, vide its Order dated  18.12.2009  has observed<br \/>\nthat though  the judgment  of the Orissa High Court  is not binding<br \/>\non this Court, since the  identical issue  was pending before the<br \/>\nCoordinate Bench of this Court,   the matter  should be adjourned<br \/>\nfor some time.\n<\/p>\n<p>4\t\tToday,<br \/>\nit has been pointed out that  this Court (Coram: Anant S. Dave, J.)<br \/>\nhas decided  Special Civil Application No. 8015 of 2009 on 11.01.2010<br \/>\nand it has been observed therein that this Court  is in agreement<br \/>\nwith the view  and  reasonings  and grounds canvassed by the High<br \/>\nCourt of Delhi, High Court of Punjab,  High Court of Mumbai, High<br \/>\nCourt of Madras and High Court of Kerala, with regard to<br \/>\napplicability  of Third proviso  to Section 15(1) SICA  as amended by<br \/>\nAct  54 of 2002, vis-a-vis, action taken under Section-13(4) of<br \/>\nSARFAESI Act,  2002.   It is further observed that this Court is in<br \/>\nagreement  with the decision given by the above High Courts (supra)<br \/>\nwith regard to  interpretation  to Third proviso to Section 15(1) of<br \/>\nSICA, 1985 as introduced by Act 54 of 2002 and Section 41 and<br \/>\nSchedule to SARFAESI, Act 2002 and other provisions of Sections 35,<br \/>\n37 etc also of SARFAESI Act, 2002  and, therefore,  contention of<br \/>\nlearned Advocate  for the petitioner that it is incumbent upon<br \/>\nrespondent Bank to obtain permission  under Section  22 of SICA, 1985<br \/>\nfails.   The Court further held that  `Reference&#8217;  under Chapter-III<br \/>\nof SICA  is a genus  and inquiry  under Section-16, orders  under<br \/>\nSection-17 and measures  for revival  and rehabilitation  of sick<br \/>\nindustrial  company under Sections 18 and 19 of the Act  are species<br \/>\nand, therefore, though order under Section 17(1), (2) or (3) of the<br \/>\nAct,  as the case may be, is passed,  Reference under Chapter-III  of<br \/>\nthe Act  continues to hold  the  field and remains   pending, but<br \/>\nonce a measure  under Section 13(4) of SARFEASI Act, 2002, is taken<br \/>\nby virtue of insertion of unnumbered  Third proviso  to Section 15(1)<br \/>\nby Act 54 of 2002, Reference stands abated and, therefore,   no<br \/>\npermission under Section 22 of  SICA, 1985 is necessary.\n<\/p>\n<p>5\t\tIn<br \/>\nview of the above decision,  with which, even this Court holds the<br \/>\nsame view, prior to the said decision,  the proceedings before the<br \/>\nBIFR  stand abated and this would enable  the Court to pass  the<br \/>\nfinal winding up order in the present petition.  It is necessary to<br \/>\nmention here that   after the admission of the petition as well as<br \/>\nafter the appointment of Official Liquidator as Provisional<br \/>\nLiquidator, an application is filed on behalf of the petitioner to<br \/>\nwithdraw the present petition.  The Court, however, has not permitted<br \/>\nthe petitioner to withdraw  the said petition  as once the petition<br \/>\nis admitted and the Provisional Liquidator is appointed, it is not<br \/>\nopen for the  petitioner to withdraw  the said petition. Even the<br \/>\nBank has lodged its claim before the Official Liquidator  and hence<br \/>\nthe Bank  entered into the shoe of the petitioner to pursue the said<br \/>\nproceedings and, hence,  the petitioner&#8217;s request  to withdraw  the<br \/>\npetition is hereby rejected.\n<\/p>\n<p>6\t\tIt<br \/>\nis also necessary  to observe here that  though the petition  is<br \/>\nfiled in  2004, till this date, no affidavit-in-reply is filed.  The<br \/>\naverments made by the petitioner  as well as by the Bank were not<br \/>\ndenied.  The dues of the petitioner and the Bank are, therefore,<br \/>\nconclusively proved.   The Court has given detailed reasonings  at<br \/>\nthe time of  passing the interim order appointing Official Liquidator<br \/>\n  as Provisional Liquidator and, hence, considering the said<br \/>\nreasonings as well as all  subsequent developments that have taken<br \/>\nplace during the pendency of the present  petition,  the Court  of<br \/>\nthe view that,  this is a fit case  to pass the winding up Order.<br \/>\nAccordingly,  the respondent   company is  hereby ordered to be<br \/>\nwound up and the Provisional Liquidator  is now permitted to act as<br \/>\nOfficial Liquidator  of the company.  He is also permitted to enter<br \/>\ninto the shoe  of the company  in all  proceedings  which are filed<br \/>\nby  or against the company.  Earlier also, directions are  given to<br \/>\nthe Managing Director  of the company to give the details  regarding<br \/>\nthe machineries which have been  transferred to Rajkot.  It is the<br \/>\ngrievance   ventilated  on behalf of the Official Liquidator that<br \/>\nsuch directions were also not complied with.   Even the statement of<br \/>\naffairs is also not truly  and fully filed by the Managing Director<br \/>\nof the Company.   The Official Liquidator  is, therefore, directed<br \/>\nto pursue the said  aspect and take appropriate  action including<br \/>\nfiling of criminal complaint  for  seeking necessary compliance<br \/>\nagainst the  Director of the Company.   The Anyonya Cooperative  Bank<br \/>\nLimited is also directed to associate with the  Official Liquidator<br \/>\nin connection with sale transaction  that may be undertaken by the<br \/>\nBank.\n<\/p>\n<p>7\t\tWith<br \/>\nthese  directions and observations, this petition is accordingly<br \/>\ndisposed of. Petition stands allowed.\n<\/p>\n<p>8\t\tSince<br \/>\nthe company is ordered to be wound up and the petition is disposed<br \/>\nof,  O.J. Civil Application No.  218 of 2009   no long survives and<br \/>\nit is accordingly disposed of.\n<\/p>\n<p>9\t\tSo<br \/>\nfar as  Official Liquidator Report No. 111 of 2009 is concerned,  the<br \/>\nsame was filed by the Official Liquidator  pursuant to the   Order<br \/>\npassed by this Court appointing the Official Liquidator as<br \/>\nProvisional Liquidator. Now the Provisional Liquidator is directed to<br \/>\nact  as Official Liquidator and hence is directed to file a fresh<br \/>\nO.L. Report taking into consideration  the subsequent developments.\n<\/p>\n<p>10\t\tWith<br \/>\nthese directions, all three matters  i.e. winding up petition,<br \/>\nCompany Application as well as  the O.L. Report are accordingly<br \/>\ndisposed of.\n<\/p>\n<p>(K.\n<\/p>\n<p>A. PUJ,  J.)<\/p>\n<p>pnnair<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Appearance : vs 4 Today on 29 January, 2010 Author: K.A.Puj,&amp;Nbsp; Gujarat High Court Case Information System Print COMP\/36\/2004 1\/ 8 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD COMPANY PETITION No. 36 of 2004 With O.J. CIVIL APPLICATION NO.218 OF 2009 In COMPANY PETITION No. 36 Of 2004 With OFFICIAL [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-192921","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Appearance : vs 4 Today on 29 January, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/appearance-vs-4-today-on-29-january-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Appearance : vs 4 Today on 29 January, 2010 - Free Judgements of Supreme Court &amp; 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