{"id":71922,"date":"2003-03-07T00:00:00","date_gmt":"2003-03-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/m-j-exports-ltd-vs-kalyan-solvent-extraction-ltd-on-7-march-2003"},"modified":"2015-05-25T08:52:04","modified_gmt":"2015-05-25T03:22:04","slug":"m-j-exports-ltd-vs-kalyan-solvent-extraction-ltd-on-7-march-2003","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/m-j-exports-ltd-vs-kalyan-solvent-extraction-ltd-on-7-march-2003","title":{"rendered":"M.J. Exports Ltd. vs Kalyan Solvent Extraction Ltd. on 7 March, 2003"},"content":{"rendered":"<div class=\"docsource_main\">Madhya Pradesh High Court<\/div>\n<div class=\"doc_title\">M.J. Exports Ltd. vs Kalyan Solvent Extraction Ltd. on 7 March, 2003<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2004 50 SCL 114 MP<\/div>\n<div class=\"doc_author\">Author: A Sapre<\/div>\n<div class=\"doc_bench\">Bench: A Sapre<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> A.M. Sapre, J.  <\/p>\n<p> 1. This company petition is filed by the creditor of the respondent-company on the ground covered under Section 433(e) of the Companies Act. It is the case of petitioner that there money dues arc outstanding on the respondent-company and despite the demand made and statutory notice served as required under Section 434 of the Act on the respondent-company, the same not having been paid, the need to file this company petition under Section 433(e) of the Act i.e. on the ground of inability to pay debt has arisen.\n<\/p>\n<p> 2. It is not in dispute that during pendency of this company petition, the respondent-company was declared as sick industrial company by BIFR under the provisions of the SICA and eventually the BIFR by order dated 5-12-1994 passed under Section 20(2) ibid in case No. 82 of 1991 referred the case of respondent-company to this Court for passing the winding up of Company. It was held by BIFR that the respondent-company is not a viable company, that it has lost its substratum, that its entire net worth is totally eroded, that there is no chance of it becoming a running concern, and hence, it was sent to this Court for passing a final winding up order in accordance with the provisions of Section 20(2) of SICA. This Court has accordingly received the said reference. It is registered as Company Petition No. 12 of 1995 in the matter of Kalyan Solvent. It is pending for passing final winding up order in relation to respondent-company.\n<\/p>\n<p> 3. In view of aforesaid admitted fact namely that a proceeding for passing final winding up orders in relation to respondent-company are pending and the same are being examined by this Court, there is no point in entertaining this petition, nor there is any point in keeping this petition pending, nor there arise any point in hearing this petition alongwith the said company petition i.e. 12 of 1995 for the simple reason that petitioner will have to now prove their claim\/debt before the O.L. now to be appointed in other company petition like any other claimant\/creditor.\n<\/p>\n<p> This Court would be examining the claims of several creditors through and with the aid of O.L. for passing a final order of winding up. Under these circumstances, the petitioner will have to submit its claim with proof in those proceedings in accordance with the provisions of Companies Act.\n<\/p>\n<p> 4. It is for these reasons, I do not consider it proper to either keep this petition pending and dispose it of by granting liberty to the petitioner to submit their claim before the O.L. as and when called upon to do so for verification against the respondent-company. Such course is legal and in confirmity with the procedure prescribed under the Companies Act. There is no prejudice caused to the petitioner by disposal of this petition because their rights in relation to claim against the respondent-company is fully secured by this Court.\n<\/p>\n<p> 5. Whatever orders, which were being passed by this Court in this Company petition by way of interim orders, will always have a binding effect while deciding the main Company Petition i.e. Company Petition No. 12 of 1995 in the matter of Kalyan Solvent because these orders relate to the same Company, which is now in liquidation.\n<\/p>\n<p> 6. It is with these observations, I decline to entertain this Company Petition. It is accordingly disposed of.\n<\/p>\n<p> No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madhya Pradesh High Court M.J. Exports Ltd. vs Kalyan Solvent Extraction Ltd. on 7 March, 2003 Equivalent citations: 2004 50 SCL 114 MP Author: A Sapre Bench: A Sapre JUDGMENT A.M. Sapre, J. 1. This company petition is filed by the creditor of the respondent-company on the ground covered under Section 433(e) of the Companies [&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":[8,24],"tags":[],"class_list":["post-71922","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madhya-pradesh-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M.J. 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