Ppg Asian Paints Pvt.Ltd. vs Eagle Motors Private Limited on 11 February, 2020

[Cites 3, Cited by 0]

Gujarat High Court

Ppg Asian Paints Pvt.Ltd. vs Eagle Motors Private Limited on 11 February, 2020

Equivalent citations: AIRONLINE 2020 GUJ 175

Bench: A.J.Desai

       C/COMP/413/2015                                 ORDER




     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/COMPANY PETITION NO. 413 of 2015

==============================================================
                   PPG ASIAN PAINTS PVT.LTD.
                             Versus
                 EAGLE MOTORS PRIVATE LIMITED
==============================================================
Appearance:
MR. JAIMIN R DAVE(7022) for the Petitioner(s) No. 1
MR ANAND B GOGIA(5849) for the Respondent(s) No. 1
MR BB GOGIA(5851) for the Respondent(s) No. 1
MS MUSKAN A GOGIA(6624) for the Respondent(s) No. 1
==============================================================

 CORAM: HONOURABLE MR.JUSTICE A.J.DESAI

                          Date : 11/02/2020

                          ORAL ORDER

1. The petitioner has filed present petition against the Respondent Company under Section 433 and 434 of the Companies Act, 1956 as the Respondent Company failed to discharge its admitted liability of Rs.30,00,000/ (Rupees Thirty Lacs Only).

2. From the record, it transpires that during pendency of the petition, consent terms dated 05.02.2017 were filed before the Court wherein the Respondent - Company agreed to pay an amount of Rs.18,00,000/ towards full and final settlement of all claims of the petitioner Company. Accordingly to the consent terms, the Respondent Company undertook to issue post dated cheque in favour of the petitioner Company for Rs.18,00,000/ (Rupees Eighteen Lacs Only). Based on this consent terms, the Page 1 of 4 Downloaded on : Wed Feb 12 23:45:50 IST 2020 C/COMP/413/2015 ORDER petition was disposed of as withdrawn with liberty to the petitioner to revive it in case of difficulty vide order dated 05.05.2017.

3. It is submitted that when the petitioner Company herein deposited postdated cheque of Rs.18,00,000/ (Rupees Eighteen Lacs Only) for clearance the same was dishonoured. Under the circumstances, the petitioner Company filed Misc. Civil Application No. 100 of 2017 seeking revival of the present petition. This Court, vide order dated 29.09.2017, allowed revival of petition.

4. Thereafter, vide order dated 07.12.2017, this Court has admitted the petition by way of detailed order and directed the petition Comp any to advertise the admission of petition in accordance with Company Court Rules, 1959. The petitioner has filed an affidavit of publication dated 20.06.2018 and produced copy of advertisement of petition in one English Daily and one Gujarat Daily.

5. That in view of the above, the matter is taken up for final hearing.

6. It is submitted by Mr. Jaimin Dave, learned advocate for the petitioner - Company, that Respondent Company had entered into consent terms wherein it has admitted liability of Rs.18,00,000/ (Rupees Eighteen Lacs Only). Since the respondent Company has also issued postdated cheque of Rs.18,00,000/ (Rupees Eighteen Lacs Only) towards such admitted liability, such postdated cheque has dishonoured and amount of Rs.18,00,000/ (Rupees Eighteen Lacs Only) has remained outstanding and Page 2 of 4 Downloaded on : Wed Feb 12 23:45:50 IST 2020 C/COMP/413/2015 ORDER payable. It is submitted that even after this Court passed order for revival of the present petition, the respondent Company had sufficient time to discharge its liability towards outstanding dues of the petitioner, however, no payment is made by the respondent - Company as on today which shows that the respondent Company is unable to pay its debts to the petitioner Company. It is further submitted that respondent Company has even otherwise lost its substratum and required to be wound up.

7. Mr.Gogia, learned advocate, is not in a position to dispute the fact that respondent Company had failed to discharge its admitted dues of Rs. 18,00,000/ (Rupees Eighteen Lacs Only) as agreed under consent terms. Thus, this Court has reason to believe that respondent Company is unable to pay its debts.

8. After hearing the learned Counsel for the respective parties, the Court is of the view that the respondent Company has failed to discharge its liabilities and its financial position is not good. The financial substratum of the Company has eroded and there are not future prospects for its survival.

9. The respondent Company is, therefore, ordered to be wound up under Section 433 and 434 of the Companies Act. The Court, therefore, appoints the Official Liquidator attached to this Court as the Liquidator of the Respondent Company and he is directed to take charge of the assets of the Company.

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10. The Official Liquidator is further directed to exercise all the powers conferred upon him under the provisions of Companies Act, 1956. He is further directed to invite the claims of the creditors and the workers. He is further directed to call the Directors of the respondent Company to file statement of affairs. The Official Liquidator shall take possession of all movable and immovable assets of the respondent Company and shall file its report within a period of three months from the date of receipt of this Court.

11. Accordingly, this petition is allowed. No order as to costs.

(A.J.DESAI, J) *F.S.KAZI....

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