PURE DRINKS NEW DELHI LTD Vs. STATE

JUDGEMENT

(1.) THIS Bench by its order dated October 21, 1991, passed an order under Section 58A(9) of the Companies Act(hereinafter called "the Act") after hearing all parties concerned in the above case directing the company to pay the overdue deposits along with the interest as per schedule over a period of time going up to December 31, 1995. While passing this order the Bench had also noted that the company right from 1981-82 onwards violated the various provisions of the Act and rules and that the company has become liable for defaults under Section 58A(5) and 58A(6) of the Act and rule 11 of the relevant rules. It was also noted that at the hearing the company contended that the group companies have substantial assets and that the management is considering various schemes for re-organisation to make the companies more viable. It was further noted that the company had to realise substantial sums from associated companies.

(2.) Subsequent to the above order the company could not keep up the schedule as contained in the order and could make only part payments against the outstanding deposits. Towards the end of 1994, the company made an application to this Bench for further extension of time up to May, 1997, due to the financial difficulties consequent to the severe competition faced by the company from multinational giants. Keeping in view the situation in which the company was placed and also keeping in view the interests of depositors the company was allowed an extension up to December 31, 1996.

(3.) THOUGH the above options were pursued for some time ultimately due to some reason or the other none of these could materialize.