STATE OF ANDHRA PRADESH Vs. HYDERABAD VEGETABLE PRODUCTS CO LTD

JUDGEMENT

(1.) This is a petition, under Section 439 of the Companies Act (Act 1 of 1956) by the State of Andhra Pradesh, represented by the Secretary to Government, Industries (Industrial Fund) Department, to Wind up the Hyderabad Vegetable Products Co., Limited (hereinafter referred to as the company).

(2.) The petition was presented on 4/01/1960. It was adjourned for about nine months at the request of the learned counsel for the respondent for the purpose of enabling the Company to find monies to satisfy its creditors or to compound with them, but nothing tangible having emerged during the interval, I am left With no alternative but to dispose of the petition on its merits.

(3.) In order to appreciate the matters arising for decision, it is necessary to give a short history of the Company. The Company was incorporated as a public limited Company under the Hyderabad Companies Act (Act IV of 1320 Fasli) on the 3rd day of Shehrewar, 1348 Fasli (corresponding to 10/07/1939). The situation of its registered office is at Hyderabad. The authorised capital of the Company is Rs. 25,00,000.00 divided into 2,20,000 ordinary shares of Rs. 10.00 each and 3,000 six per-cent cumulative preference shares of Rs. 100.00 each. The issued capital is Rs. 24,50,000.00 and the subscribed capital is Rs. 24,40,120.00 made up of 2,14,012 ordinary shares of Rs. 10.00 each and 3,000 six per cent cumulative preference shares of Rs. 100.00 each. Out of this amount, a sum of Rs. 3,754.00 represents calls unpaid. The objects clause of the memorandum of association sets out a multitude of objects. The main objects, however, are to estabIish a factory or factories in and around Hyderabad or elsewhere in India for manufacturing vegetable products and artificial ghee and as ancillary thereto to establish an oil mill or mills. On the date of the incorporation of the Company, Messrs. Sheik Imam and Sons were appointed its Managing Agents for a period of twenty years.