RAM KUMAR AGARWALA Vs. BUXAR OIL AND RICE MILLS LTD
HIGH COURT OF CALCUTTA
RAM KUMAR AGARWALA
BUXAR OIL AND RICE MILLS LTD.
Referred Judgements :-
BOWES V. HOPE LIFE INSURANCE AND GUARANTEE CO.
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KEOTOKEY CHURN BANERJEE V. SARAT KUMARI DABEE
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Bachawat, J. -
(1.)This is an appeal from an order refusing to wind up the respondent company, Buxar Oil and Rice Mills Ltd.
(2.)The case of the appellants is that the company issued 300 debentures of Rs. 1,000/- each and executed a debenture trust deed dated 1-3-1954, by which valuable lands, factory buildings, machinery plant and tools appertaining to its factory at Buxar were mortgaged to secure the repayment of the debentures. The appellants are the trustees for the debenture holders appointed by the trust deed. Their further case is that interest since June 1955 payable to the debenture-holders is in arrears that the security constituted by the trust deed became enforceable, that on 7-8-1958 they served upon the company the requisite statutory notice under Section 434 of the Indian Companies Act and that in spite of the notice the company failed and neglected to pay the dues of the debenture-holders. The appellants presented this winding up petition on 15-9-1958. They contend that the company is unable to pay its debts and also that it is just and equitable to wind up the company.
(3.)The company has its registered office in Calcutta. It has an oil and rice mill and factory at Buxar. In this appeal we shall have to notice three sets of transactions entered into by the company viz. (a) the debentures and the debenture trust deed, (b) a lease of lands and machineries in Buxar executed by the company in favour of one Shahabad Industries (Private) Limited, (c) a transaction of loan of Rs. 65,000/- obtained by the company from the respondent Sitaram Bhartia.
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