TaxTMI 
TaxTMI 
2008 (5) TMI 416
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.... Pursuant to this, advertisement was published in the newspapers as directed by this court and affidavit to this effect alongwith the newspapers' clippings are produced on the record of this case. During the pendency of this petition Company Application No. 577 of 2006 is filed by Borsad Urban Co-operative Credit Society Ltd., for joining as party respondent in the Company Petition No. 146 of 2006 on the ground that the said society is one of the secured creditors. The court has disposed of the said application vide its order dated November 6, 2006, permitting the said applicant to be joined as a party respondent. On September 24, 2007, this court has passed an order for the purpose of considering a larger question. Before the final order of winding up is passed, the court has observed in its order dated September 24, 2007, that whether the company, which is promoted and fully controlled by the Government and has become instrumental for implementation of the policy of the Government, can just be ordered to be wound up merely because it is running into losses or has inability to pay its debts or is unable to discharge its obligation towards creditors ? For the purpose of exami....
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.... of 1998 was filed by the present petitioner wherein this court directed the State Government to appoint a fact finding committee/high power committee consisting of the concerned IAS officers to inquire into and find out the cause which led to wind up Gujarat Small Industries Corporation Ltd., and to submit the report before this court. He has further submitted that accordingly, the State Government had appointed the High Power Committee by Government resolution dated April 28, 2006. He has further submitted that the General Administration Department of the Government of Gujarat had conducted a preliminary inquiry based on the Accountant General's report and also individual special report conducted by M/s. Manubhai and Co., chartered accountant, on the instructions of GSIC at the relevant time. The State Government was, therefore, directed to produce the report of the fact finding committee, report of the Accountant General and the report of the chartered accountant on the record of this petition along with the affidavit of the concerned officer. The State Government was also directed to show cause as to why the amount invested by the co-operative banks and other investors on the b....
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....y the hon'ble Supreme Court that it cannot be said in all the cases that Government is responsible for the acts and deeds of the Government company. All that depends upon the facts and circumstances of each case. Looking to the facts and circumstances of the present case the nature of transaction which is based upon non redemption of "unsecured, non-convertible bonds in the nature of promissory notes", the aforesaid petitions are not entertained by this court, as there is no liability vested in the Government or there is no legal duty vested in the Government for redemption of those "unsecured, non-convertible bonds". It is further submitted in the said affidavit that this judgment dated October 5, 2005, of this court is challenged in L. P. A. No. 1716 of 2005 by Marketyard Commercial Co-operative Bank Ltd., and in other LPAs of similar nature. These LPAs are pending before this court. In the above background of the matter, the present petition is taken up for final disposal. Mr. A. C. Gandhi, learned advocate appearing for the petitioner submitted that the petitioner-company although was incorporated to carry on business serving small scale industries of the State of Gujarat....
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....ances of Rs. 65 crores approximately and all the amounts are very old and shown as doubtful debts. The recovery from old outstanding is negligible and in no way sufficient to make payment to its creditors. Mr. Gandhi further submitted that the petitioner-company had fixed assets consisting of land and building and as per the valuation by the Government approved valuer, the value of such land and building is Rs, 6 crores approximately as on March 31, 2006. The said immovable properties consisting of land and building have been attached by the Sales Tax Department of the State of Gujarat against their demands by the order dated July 5, 2003 and the petitioner is the only caretaker of these properties. It is further submitted that the petitioner-company has been issued orders from the Sales Tax Department raising demands for an amount of Rs. 130 crores for various old assessments. In addition to this, Income-tax Department has issued demand of Rs. 1.26 crores and demand of Rs. 38 lakhs is issued by the Central excise Department. All the matters are pending before the appropriate authority in appeal. Considering all these facts, the business activities of the petitioner-company were....