S.C. Ghose, J. - (1.) The petitioner is a Government company within the meaning of Section 617 of the Companies Act, 1956. The petitioner is hereinafter referred to as the new company. The petitioner was incorporated on or about February 22, 1967. The Rivers Steam Navigation Co. Ltd. (hereinafter referred to as the said company) owning various vessels. Steamers Tugs Flats, Launches and Barges was a carrier of goods for reward from West Bengal to Assam and back on inland waterways through East Pakistan.
(2.) On or about May 3, 1967 an order was passed by this Court sanctioning a scheme of arrangement or compromise between the said Company and its creditors under Sections 391 and 394 of the Companies Act, 1956. The said scheme was confirmed by the Appellate Court with certain modifications.
(3.) By and under the said' scheme it was provided inter alia that : (1) All the properties and assets of the said Company would be transferred to and vest in the New Company free from mortgage and charge created in favour of the Chartered Bank. (2) The liabilities of the said Company to the State Bank of India and Government of India would become the liability of the New Company. (3) All other unsecured creditors of the company besides the State Bank of India. Chartered Bank and the Government of India would be paid in accordance with the provisions of the scheme. The Government of India would pay all sums due to the secured and unsecured creditors as shown in the said scheme. After the sanction of the scheme a notice dated May 3, 1957 was issued by the said company to the following effect : "Notice to Employees of Rivers Steam Navigation Co. Ltd Notice is hereby given that the entire undertaking of Rivers Steam Navigation Company Limited in West Bengal, Assam and other places including the Dockyard Ghats etc., will be closed with immediate effect. 2. This closure is being effected in terms of the scheme sanctioned by the Calcutta High Court by its order dated the 3rd May 1967 and due to various circumstances placed before the said High Court including the stoppage of the through river transport service from Calcutta to Assam.;