APURVA J PAREKH Vs. ESSEN COMPUTERS LTD

JUDGEMENT

(1.) The petitioners, namely, Shri Apurva J. Parekh, the Ex-Director of Essen Computers Limited as petitioner No.1 and Essen Finance and Investment Limited, a Company registered under the Companies Act, 1956 as petitioner No.2, have filed this petition to obtain the sanction of this Court to the scheme of compromise proposed by the petitioners with the Loan Creditors, Secured Creditors, Creditors for goods and expenses and Statutory Creditors of the Company, namely, Essen Computers Limited (In Liquidation).

(2.) The Company was floated in the year 1984. The Company was mainly dealing in Computers, peripherals, modules, instruments, hardware, software and systems. After successful beginning, on account of various reasons beyond the control of the management, the company suffered heavy financial losses. The main reason for such financial losses was the failure of the Eastern block market and set back suffered by the hardware industries in the country. As a result thereof, the Company closed down its business activities on 31.03.1994 and by an order dated 17.04.1997 passed by this Court in Company Petition No. 97/1995, the Company was ordered to be wound up. Since then the Official Liquidator attached to this Court has taken over the charge of the assets of the Company.

(3.) Some times in the year 2001, the petitioners felt that if the winding up operations of the Company were continued, the Creditors were not likely to receive anything and as against that, there was a possibility of revival of the Company for the benefit of such Creditors and shareholders of the Company and in this view of the matter, the scheme of compromise and/or arrangement was being proposed by the sponsors with the objective of revival of the company and for repayment of a part of the dues of the Creditors of the Company in a phased manner.