D S VENKATRAMAN Vs. GUJARAT INDUSTRIES PVT LTD

JUDGEMENT

(1.) This judge's summons dated 4th February, 1976, is taken out under section 392(2) of the Companies Act, 1956. Its object is that the company having failed to implement the scheme sanctioned by Rege, J. by his order dated 30th September, 1975, whereunder the company had agreed to pay unsecured creditors in the manner provided thereunder, the company be wound up.

(2.) Some of the salient features of the scheme can be borne in mind at the outset. Firstly, the company was required to set apart and keep deposited with their attorneys, Messrs. Ambubhai and Diwanji, a sum equivalent of the 20 per cent. of the adjustable amount as well as the amount of interest within a period of three months from the date of confirmation of the scheme which means that this amount was to be deposited by the 31st December, 1975. This amount was to be distributed among the unsecured creditors on pro rata basis within 14days from the date of the deposit. Thus, the distribution of the amount among the unsecured creditors was to be completed by the middle of January, 1976. Secondly, the company agreed and assured to continue its export business. Thirdly, the directors of the company agreed to deposit with the Prothonotary and Senior Master of this court, their share certificates in the company, within a period of four weeks from the confirmation of the scheme, i.e., this was to be done by the end of October, 1975. Fourthly, the directors of the company agreed and undertook to give necessary guarantee to the prothonotary and Senior master to implement the scheme and to pay the amounts under the scheme and to pay the amounts under the scheme. These guarantees were to be given within week from the date of confirmation of the scheme. This means by the end of the first week of October, 1975.

(3.) The applicant's attorneys, by their letter, dated 13th December, 1975, addressed to the company's solicitors, inquired of the company as to whether the company had given guarantee to the company had given guarantee to the Prothonotary and Senior Master to implement and to pay to the unsecured creditors the amount payable under the scheme and whether they had deposited the necessary share certificates in respect of the shareholdings of the directors of the company as also whether they had carried out the provisions of clauses 6, 8 and 9 of the scheme. But the company did not choose to give any reply. This was followed by a reminder dated 7th January, 1976, and it was pointed out that the company and its directors had committed breach of the undertakings given to this court and had failed to furnish the necessary information. It was also pointed out that if the relevant information was not given on or before 9th January, 1976, proceedings, inter alia, to wind up the company would be adopted. This also had no effect on the company. It is in these circumstances that the present judge's summons has been taken out by the applicant who is an unsecured creditor. He had given a loan of Rs. 6000 for a period or six months which fell due for repayment on 11th August, 1972, with interest thereon at the rate of 15 per cent. per annum. He was a party to the scheme.