Sunil Ambwani, J. - (1.) M /s. Oswal Foods Ltd. (in liquidation) was wound up by this Court on a petition filed by M/s. J. K. Corp. Ltd., a creditor to the extent of Rs. 51,21,968 as on August 30, 2000, by an ex parte order. A recall application was filed on November 7, 2000. It was directed to be listed before the hon'ble M. C. Jain, J. (since retired). The matter could not be heard, thereafter.
(2.) IN the recall application it is stated by Shri Suraj Jain, one of the directors of the company (in liquidation) that he came to know about the winding up order by communication given by the official liquidator dated October 18, 2000. No summons, process or notices were tendered to the company at its registered office. The company and its directors as well as the officials had no knowledge about the proceedings. The newspapers Amur Ujala published from Allahabad and Pioneer from Varanasi do not have circulation in Khalilabad, district Basti. It is stated in paragraph 9 that on account of certain adverse market circumstances the company was compelled to close down its manufacturing activities between April 1998 and December 1999. With effect from January 2000 the company had once again commenced production and is engaged in manufacturing activity utilizing 70 per cent, of its production capacity. During April 1, 2000 and September 30, 2000, it purchased 11238.98 MT of raw material of the value of Rs. 20.30 crores and has processed 9579.52 MT of vanaspati ghee, which has been marketed in the name and style of Arpan. The value of the manufactured product was Rs. 24.50 crores. Sixty persons are employed in the company, and the company is paying Rs. 15 lakhs towards trade tax. The company is a running concern and there is a reasonable hope of its rehabilitation. Besides it is stated in paragraph 12 that in the preceding year due to accumulated losses as per the balance -sheet exceeded its net worth, a reference was made to Board for Industrial and financial reconstruction (BIFR), which was registered on July 10, 2000.
(3.) IN the reference made to BIFR the company disclosed that as on September 30, 1999, it was indebted to Allahabad bank to Rs. 193.12 lakhs, State Bank of India Rs. 457.77 lakhs and Rs. 236.70 lakhs towards interest and BNP Rs. 82.30 lakhs. The company had also taken loan from financial institutions namely IDBI, IFCI, ICICI and other State Financial Corporations and Small Industries Development Corporation to which it was indebted for Rs. 1193.46 lakhs towards principal and Rs. 547.94 lakhs towards interest. There was provident fund, electricity and other dues to the extent of Rs. 83.40 lakhs and that the net worth of the company was fully eroded.;