Court Orders Winding-Up of Company Over Unpaid Loans

The court granted the winding-up applications against the company filed by ICICI Bank Limited and M/s. G.S. Atwal & Co. (Engineers) P. Ltd. due to substantial unpaid loans totaling over Rs. 17 crores and Rs. 60 lakhs, respectively. The company's defense citing the avian flu outbreak impacting its business was deemed insufficient, with the court appointing the Official Liquidator as Provisional Liquidator to seize assets. Despite partial payment attempts, the court found no valid defense for the debts, leading to the company's winding up, with a two-week appeal window granted.

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Issues:
1. Unpaid loans by the company to the petitioning creditor.
2. Defence raised by the company related to avian flu outbreak.
3. Orders passed by the court regarding winding up applications.

Analysis:
1. The petitioning creditor, ICICI Bank Limited, filed a winding-up application against the company due to substantial unpaid sums lent since 2002, amounting to over Rs. 17 crores. Another petition by M/s. G.S. Atwal & Co. (Engineers) P. Ltd. claimed Rs. 60 lakhs owed by the company. The company failed to respond adequately to the statutory notices, leading to the winding-up applications.

2. The company defended itself by citing the avian flu outbreak in West Bengal in 2008, affecting its poultry business. The company argued that the reduced sales were due to the flu outbreak, impacting its ability to repay the debts. However, the court found this defense insufficient, stating that external factors do not absolve a company from its financial obligations.

3. The court issued various orders, including appointing the Official Liquidator as Provisional Liquidator to take possession of the company's assets. Despite the company's attempts to make partial payments during the proceedings, the court found no valid defense for the outstanding debts. Consequently, the court ordered the winding up of the company, directing the Official Liquidator to take physical possession of all assets, but granted a two-week period for the company to appeal the decision before enforcement.

This detailed analysis covers the key issues of unpaid loans, the company's defense related to the avian flu outbreak, and the court's orders regarding the winding-up applications, providing a comprehensive understanding of the judgment.

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