Karnataka HC Orders Winding Up of Mars Print Pack Pvt. Ltd. Due to Insolvency Under Investor Petition.

Mr. R Sridhar Rao, Mr. R. Ananda Rao and Smt. Vijaya S. Rao Versus M/s Mars Print Pack Pvt. Ltd., Mr. Suresh Rao, Sri B Gopalakrishna Shenoy and State Bank of India, Bangalore

Mr. R Sridhar Rao, Mr. R. Ananda Rao and Smt. Vijaya S. Rao Versus M/s Mars Print Pack Pvt. Ltd., Mr. Suresh Rao, Sri B Gopalakrishna Shenoy and State ... The Karnataka High Court, presided over by Hon'ble Anand Byrareddy, J., addressed a petition concerning the financial insolvency of Mars Print Pack Pvt. Ltd., incorporated in 1995. The petitioners, investors related to the company's Managing Director, alleged mismanagement leading to substantial financial losses and inability to repay a loan of Rs. 50,00,000/- obtained from respondent No.4. This default resulted in recovery proceedings before the Debt Recovery Tribunal, culminating in a recovery certificate favoring respondent No.4 for over Rs. 1,00,00,000/-. Despite this, respondent No.4 had not executed recovery actions, posing a threat of proceeding against the petitioners.

The petitioners filed under Section 439(8) of the Companies Act, 1956, claiming the company's inability to pay its debts, evidenced by the lack of response to a statutory notice. The court found sufficient grounds to support the petitioners' claims, noting the absence of representation from the respondents except respondent No.4. Consequently, the court ordered the winding up of Mars Print Pack Pvt. Ltd., appointing the Official Liquidator for the process. The petitioners were directed to deposit Rs. 50,000/- for liquidation expenses, file the order with the Registrar of Companies, and advertise the winding-up order in specified newspapers within four weeks.