Sunil Ambwani, J. - (1.) HEARD Shri Ravi Kant, senior advocate assisted by S.N. Tiwari for the ex -directors of the company (in liquidation), namely, Smt. Alka Mahajan, wife of Shri Sanjay Mahajan, Ajay Mahajan, Shri Sanjay Mahajan and Shri Ashok Mahajan all sons of late Shri Keshav Ram Mahajan and Smt. Juhi Mahajan, wife of Shri Ajay Mahajan. Shri Rajnath N. Shukla appears for the Official Liquidator. Shri S.K. Saxena, the Official Liquidator is present. Shri Anurag Khanna appears for PICUP.
(2.) DANIN Leathers Ltd. (in liquidation) was wound up by the court on 12 -10 -1999, on a creditors' winding up petition and the Official Liquidator was appointed as the liquidator of the company. The ex -directors were required to file the 'statement of affairs' and to handover the possession of the assets of the company (in liquidation) to the Official Liquidator. They, however, kepi on delaying the matter, in spite of full knowledge of the proceedings of liquidation, and ultimately after several summons, warrants and then non -bailable warrants issued for securing their presence they appeared and sought adjournments in the proceedings up to 14 -11 -2005. Initially, they made several unusual requests like providing requisite Forms for filing statement of affairs. Their counsel Shri L.K. Pandey pleaded ignorance of company law. Thereafter, Shri S.O.P. Agrawal, advocate appeared and filed an affidavit stating that the ex -directors have requested for documents from the State Bank of India for filing the statement of affairs. It was only after repeated persuasion that the statement of affairs was filed on 22 -2 -2006, without disclosing complete assets and liabilities. All the ex -directors except the ladies, who were exempted from personal appearance, sitting in the court for last about five dates fixed in the matter have refused to provide complete details of the affairs of the company. At this stage PICUP, the State Bank of India and UPFC were required to file affidavits explaining the efforts made by them to recover their dues. The PICUP advanced a loan of Rs. 40,21,118.02 to the company (in liquidation). At present a total amount of Rs. 2,75,38,400.09 (rupees two crores seventy five lakhs thirty eight thousand four hundred and nine paise) is to be paid by the company to PICUP. The company (in liquidation) has a sister concern M/s. Mahajan Tanners Ltd. The court prima facie found that PICUP had not taken effective steps to recover the amount. In the circumstances, the managing director, PICUP was required to file an affidavit explaining the steps that have been taken for recovery.
(3.) SHRI Anurag Khanna, learned Counsel appearing for PICUP has filed affidavit of Shri Sudhir Garg, managing director of PICUP. This affidavit gives the details of the efforts, made by PICUP to recover the amount due from the company (in liquidation). It is stated in this affidavit that M/s. Danin Leathers (P.) Ltd., was engaged in the manufacture and export of shoes and shoe uppers at Johns Mill Compound, Jeoni Mandi, Agra, with an installed capacity of three lakh pairs of shoes/uppers per annum. They requested for financial assistance on which PICUP sanctioned loan of Rs. 100 lakhs under 'Equipment Refinance Scheme', vide sanction letter dated 10 -11 -1999. The company requested for cancellation of loan as they did not want to implement the scheme. The loan was cancelled in September, 1990. Again a request was made for financial assistance of Rs. 51.80 lakhs and again the loan was cancelled in March, 1993. Once again a request of Rs. 45 lakhs was made by the company with board of directors including Shri Keshav Ram Mahajan, Shri Sanjay Mahajan, Shri Anil Mahajan and Smt. Juhi Mahajan. The composition of board of directors was changed on 16 -5 -1994, with Keshav Ram Mahajan, Sanjay Mahajan, Dr. Ashok Mahajan and Ajay Mahajan as directors. A loan of Rs. 45 lakhs was sanctioned, and a total amount of Rs. 43.80 lakhs was paid. The company committed defaults in November, 1995. A notice under Section 29 of the SFC Act was sent, and the bonds of guarantee were invoked on 17 -1 -1998. A recovery certificate of Rs. 59.53 lakhs was sent to the Collector, Agra, against which only Rs. 2.27 lakhs was realized by the Revenue Recovery Officer.;