- (1.) This is a petition under Sections 433, 434 and 439 of the Companies Act, 1956 (for short "the Act") for winding up the respondent Company, M/s Anco Papers Ltd. (for short "Anco"). The petition has been presented by the Paper Workers & Labour Union representing the body of workers employed by Anco which has turned sick and is lying closed since 2-3 years. Anco is unable to pay its admitted dues even to its secured creditors i.e. Punjab State Industrial Development Corporation (PSIDC) or wages and salaries to its workers. The petitioners are creditors secured in view of Section 529-A of the Act. The right to wages of the workers represented by the petitioning Union stand determined by various orders passed by the Labour Courts under the provisions of the Industrial Disputes Act, 1947 (for short "ID Act") ordering or awarding wages/salaries which Anco has failed to pay. These periods range from September 1, 1999 to December 31, 1999 and then again from September 1, 2000 to January 31, 2003 which is a secured debt. Anco is said to be commercially insolvent. It is stated in the petition that Anco failed to be represented before Labour Courts and Tribunals in proceedings under section 33 C (2) of the ID Act and remained ex parte. Steps taken by the workers in implementation of orders/wages through the process of Section 33-C (1) of the ID Act for recovery of money quantified at Rs.17,05,530/- in the process of recovery which dues were discovered by the revenue authorities when they found mutations of the immovable property of Anco was not sanctioned and, therefore, it was not possible to put the property to auction to satisfy the claims of the workers. Other than the workers, PSIDC made a run on Anco to recover its secured loan and began taking steps towards auctioning the assets/property of Anco mortgaged to PSIDC to secure the loan. At the auction, a bidder made an offer of Rs.63 lacs on July 21, 2008.The workers preferred an application before the Assistant Labour Commissioner, Sangrur on March 20, 2009 for attachment of property of Anco to satisfy the claims of the workers then running into Rs.81,66, 738/-. The strength of workers when the going was good was between 100 to 150. On failure to satisfy their claims, they had approached Labour Courts. It is stated in the petition that PSIDC had sold the plant and machinery of Anco for total sale consideration of Rs.77 lacs which according to the workers was undervalued. The long history of the case is narrated in the petition which needs no further detailing.
(2.) In the circumstances, Mr. Anand Chhibber, learned Senior Counsel appearing for the petitioning Union submits that no useful purpose will be served by keeping Anco floating aimlessly and the company deserves to be wound up for its inability to discharge its admitted debts to the two secured creditors i.e. PSIDC and the workers represented by the Union. Besides, Anco deserves to be wound up under Section 433 (c) of the Act since it has become nonfunctional as its working stands suspended for over one year. Therefore, it would be just and equitable to pass orders of winding up.
(3.) The petitioner has filed separately Company Application No.47 of 2013 under Section 450 of the Companies Act, 1956 read with Rule 9 of the Companies (Court) Rules, 1959 read with Section 151 CPC praying that a provisional Liquidator be appointed to take over the assets of the respondent company and to restrain the respondent from alienating, transferring, selling or otherwise parting with possession and/or creating a charge of encumbrances on its movable and immovable properties and to restrain the respondent from withdrawing any amount from any of its current credit account and to attach its bank accounts etc. This application was filed on January 23, 2013.;