ORDER
1. Heard Sri Subodh Kumar, additional standing counsel for the petitioner and Sri S.P. Pandey on behalf of Sri Ajai Prakash.
2. This company petition has been filed by Registrar of Companies U.P. and Uttaranchal at Kanpur under Section 433(f) read with Section 439(6) of the Companies Act, 1956 ('the Act') to wind up the respondent-company after issuing statutory notice under Section 433(f) read with Section 439(6) and after getting sanction to file winding up petition under Section 439(6) vide order dated 14-9-2001 given by Regional Manager (NR), Camp Office New Delhi, Department of Company Affairs, Ministry of Law and Justice and Company Affairs, Government of India in exercise of delegated power under the proviso to Sub-section (5) of Section 439.
3. The petitioner has verified that during the investigation made by the Central Bureau of Investigation ('CBI'), in the matter of default in making payment to various investors by Century Consultant Ltd., a report was submitted by CBI dated 20-8-2001/23-8-2001 stating that the agency has registered criminal cases against Director of Century Consultant Ltd. having cheated several thousands of investors, and financial institutions through forgery, fraud and by corrupt/illegal business. Suits have been filed by the Bank and Financial Institutions before the Debt Recovery Tribunal. On the recommendation of the CBI for taking action under Section 26 of the Act, companies wherein Directors of Century Consultants/Cyberspace Scam or their employees are involved, the Central Government examined the matter and after giving statutory notice, sanction was given to the Registrar of the Companies to file this winding up petition.
4. In para 4 of the petition the financial position of the company as on 31-3-2000 is disclosed as follows:
Liabilities Shareholder Fund 22,000.00 Current Liabilities 500.00 Secured loans Nil Total 22,500.00 Assets Fixed Assets Nil Cash in hand 8,193.00 Prel. Expenses 7,000.00 Incidental Expenditure 7,307.00 Total 22,500.00
5. The company petition was directed to be advertised under rule 24 of the Companies (Court) Rules, 1959 and that the Official Liquidator was appointed provisional liquidator on 24-11-2001. The office reports that the summons sent have returned back with the report that there is no firm on the address. Copies of 'Hindustan Times' (English) and 'Dainik Jagran' (Hindi) in which notices have been published as well as, Official Gazette dated 9-3-2002 in which the notice has been published, have been filed on record.
6. The Official Liquidator vide his report No. 170 of 2001 has reported that Sri Rajeev Kumar Nagia Ex-Director of the Company has handed over cash amounting to Rs. 652 along with copy of balance-sheet made as on 31-3-2001. The Ex-Director of the company has asked for formal notice for submission of statement of affairs.
7. In the counter-affidavit of Sri Rajiv Kumar Nagia it has been stated that he is the Managing Director of the company and that he has no concern with the Century Consultant or its Directors. He states that the CBI has not registered any case against company and has not made adjudication against the company or Directors in their reports. He has no concern with the Directors of the Century Consultants Ltd. and its Directors Joharis and others. In regard to paragraph 15 he has admitted that he could not carry on any business after its incorporation since 11-7-1991 and that he has no objection to the winding up or dissolution of the company.
8. From the aforesaid facts, the investigation made by the CBI and notices given by the Department of Company Affairs through Director (NR), the notices published to which no objection has been filed, and, upon hearing Sri Subodh Kumar for Registrar of Companies, U.P. & Uttaranchal, Kanur, the petitioner, I am satisfied that the respondent company is liable to be wound up under Section 433(b), (c) and (f).
9. The company petition is, accordingly, allowed, and the respondent company is directed to be wound up. The official liquidator, who was appointed as Provisional Liquidator of the respondent-company vide order of this Court dated 24-11-2001, is appointed as the Liquidator of the company under Section 449.