TaxTMI 
TaxTMI 
2004 (3) TMI 438
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....ompany Application (Ldg.) No. 152/2004 following reliefs are claimed:- (a )That pending the consideration of the Scheme of Compromise with or without modification, proposed by Nielcon Limited (In Liquidation) with its creditors (other than sundry creditors) and for a period of 20 weeks after the Chairman's report of the last of such meeting of any class of creditors of Nielcon Limited, this Hon'ble Court be pleased to grant stay of the commencement or continuation of any suit or proceeding against the Company and its promoters for recovery of any sums or enforcement of security with respect to claims by the creditors as set out in Exhibit 'C' to the affidavit in support of this Judge's Summons and the prosecution or continuation of the sui....
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....ion); (b )That this Hon'ble Court be pleased to give appropriate directions as to the method of convening, holding and conducting the said meeting(s) and as to the notices and advertisements to be issued; (c )And that a Chairman (or Chairmen) may be appointed by this Hon'ble Court of the said meeting(s) who shall report the result thereof to the Hon'ble Court; (d )for adinterim relief in terms of prayers (a), (b) and (c ) above; (e )for costs of this Application; and (f )for such further and other relief as the nature and circumstances of the case may require. 3. By this common order, both the Applications are being disposed of. 4. Both these applications are resisted by the Bank of India, State of Maharashtra-Sales Tax Department, W....
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....hat certain proceedings have been filed before the Debts Recovery Tribunal, Mumbai, against the company in liquidation and the same are stated to be pending. In the said proceedings, the Debts Recovery Tribunal has directed that the property of the company in liquidation be sold so as to secure the dues of the petitioners therein. That order has not been challenged so far, which was passed on 11th December, 2003. Pursuant to that order, procedure for sale of the said property has already been concluded and it is agreed between the parties that the Debts Recovery Tribunal has confirmed that sale on 10-3-2004. And, consequent to that, the entire consideration has since been deposited by the third party, who has purchased the said property. Ob....
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....ced on behalf of the first set of secured creditors that, as they constitute much more than 50% much less 1/4th% of the total strength of the class of secured creditors and, they have taken a categorical stand that they are opposed to the proposed scheme, as propounded by the applicant for diverse reasons, no fruitful purpose would be served by exploring the possibility of convening a meeting of the secured creditors. Inasmuch as, the proposal is bound to be defeated in the meeting, even if convened. Therefore, there is no other option but to reject the applications of the applicant. 8. The second objection raised on behalf of the first set of secured creditors is that the scheme as propounded by the applicant is defective and lacks materi....
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....laim of Bank of India that it is a secured creditor to the extent of more than 50% of the share in the class of secured creditors. It is brought to my notice that the Bank of India has also instituted the suit for recovery of amount of Rs. 7.30 crores alongwith the interest, which fact is not in dispute. 10. Be that as it may, there is substance in the argument advanced on behalf of the first set of secured creditors that no fruitful purpose will be served by permitting the applicant to convene the meeting of the class of secured creditors. My attention is also invited to the fact that there are large number of criminal cases already registered against the applicant, who has propounded the proposed scheme. The argument, therefore, on behal....
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.... The audited accounts of the company produced are for the assessment year 1997-98. With regard to the latter period the applicant has referred to unaudited accounts (i.e. after April, 1998 till November, 1998). Reliance was placed by the counsel for the first set of secured creditors on the decision in Auto Steering India (P.) Ltd., In re [1977] 47 Comp. Cas. 257 (Delhi), to buttress the argument that disclosure of the latest financial position of the company and all other material facts is essential, for grant of reliefs under section 391(2) of the Companies Act. Indeed, the stage of sanction of the scheme has not arisen in the present case, but the fact remains that material details are not disclosed in the proposed scheme as propounded a....