Court : Supreme Court of India
Reported in : I(1992)ACC332; AIR1992SC248; (1991)3CompLJ213(SC); JT1991(6)SC8; 1991(2)SCALE675; (1991)4SCC584; [1991]Supp1SCR251; 1992(1)LC505(SC)
..... the court can either approve of the settlement or disapprove of it but it cannot, without the consent of the concerned party, impose any new or additional financial obligations on it ..... there were no criteria to go by at all to decide the fairness and adequacy of the settlement.contention (h):even if the settlement is reviewed and set aside there is no compulsion or obligation to refund and restore to the ucc the funds brought in by it, as such restitution is discretionary and in exercising this discretion the interests of the victims be kept in mind and restitution denied.at all events, if restitution is to ..... whether, if ucc is held entitled to such restitution, should it not, as a pre-condition, be held to be under a corresponding obligation to restore and effectuate its prior undertaking dated 27th november 1987 to maintain unencumbered assets of three billion u.s. ..... consideration and in fulfilment of the offer made earlier, the ucc and ucil should agree to bear the financial burden for the establishment and equipment of a hospital, and its operational expenses for a period of ..... . but that should not detract the ucc and the ucil from fulfilling these obligations, as indeed, the moral sensibilities to the immense need for relief in all forms and ways should make both the ucc ..... the situation contemplated by section 4 to have due regard to the views of the victims and that obligation cannot be discharged by the central government unless the victims are told that a settlement is proposed .....
Tag this Judgment!Court : Delhi
Reported in : III(2003)BC595; [2004]118CompCas69(Delhi); 106(2003)DLT672; 2003(70)DRJ483; [2004]51SCL741(Delhi)
..... opinion of the board confirmed by the appellate authority that the respondent company was not likely to make its net worth exceed its accumulative losses within a reasonable time while meeting all its financial obligations, in my considered opinion no case is made by the respondent for any interference to the aforesaid orders. 19 ..... was of the prima facie confirmed opinion that the respondent company was not likely to make its net worth exceed its accumulative losses within a reasonable time while meeting all its financial obligations and that the company as a result thereof was not likely to become viable in future. ..... reported in (1991) 2 comp lj 323 (del), the division bench of this court had held that on receipt of opinion, forwarded to it by the board for industrial and financial reconstruction (bifr), the high court was required to proceed with the winding-up in accordance with the provisions contained in sub-section (2) of section 20 of the sick industrial companies (special provisions) ..... case the scheme proposed and finalised was allowed to be implemented but the promoters failed to discharge their obligations under the scheme and, thereforee, it was the promoters of the respondent company who nullified the scheme. ..... opinion, thereforee, once the board recommends and sends its opinion to the high court under section 20(1), the high court, in terms of section 22, is obliged to pass an order of winding up of the company without following the procedure laid down under the companies act. .....
Tag this Judgment!Court : Kerala
Reported in : [2003]114CompCas777(Ker); [2003]45SCL170(Ker)
..... these petitions, the board of directors in their wisdom thought it would be better to sell some of the immovable properties so that the sale proceeds could be utilised for meeting its financial obligations towards the banks/financial institutions for which necessary approval from the general body is statutorily required. ..... that in the present situation of the company unless and until some of the assets (immovable properties) of the company are sold and utilise the sale proceeds thereof for meeting its financial obligations particularly towards banks and financial institutions it would not be possible to salvage the company.33. ..... the board of directors and felt in the facts and circumstances the only feasible option was to sell some of the immovable properties and utilise the sale proceeds for meeting the financial obligations particularly to the banks and financial institutions. ..... one of the feasible options, available to the company is to sell some of the assets (immovable properties) of the company and utilise the sale proceeds thereof in meeting its financial obligations particularly towards banks/financial institutions.5. ..... these liabilities towards the banks and financial institutions, the company also has other substantial financial liabilities/obligations which are required to be honoured ..... it was pointed out in view of the urgency to generate funds for repayment to banks and financial institutions, as well as to the workers it is not possible to apportion the said property and .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : [2001]106CompCas239(P& H); (1999)123PLR335
..... clearly shows that the company is not only unable to pay its debts to the financial institutions and public undertakings but has even failed to discharge its financial obligations towards its workmen for a considerable period. 47. ..... respondent-company for its inability to pay its debts despite service of a statutory notice within the preview and scope of sections 433, 434 and 439 of the companies act, 1956 ('the act') but was obliged to consider with definite emphasis whether it was just, fair and equitable to wind up this respondent-company for various reasons and causes, which came to on the record of this file during the pendency of the ..... , the possession of which he has taken or is likely to take within the stipulated period; (b) the official liquidator shall act in consultation with nodal officer, not below the rank of a dgm to be appointed collectively by all the financial institutions, public undertakings (who are the creditors of the respondent-company and three members of the expert finance committee appointed by this court in regard to all affairs of the respondent company; (c) the official liquidator shall ..... the detailed circumstances explained above squarely fall in this principle as there is complete deadlock in the management of the affairs of the company resulting from financial crisis, company having no liquidity, the creditors seriously opposed to further investment and inability on the part of the company to create any resources to invest further liquidity in the .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : 1994(3)ALT542; (1995)ILLJ342AP
..... the scope of the settlement by observing :- 'the words relating to the monetary commitment on behalf of the management cannot be stretched to such an extent at to say that the management is absolved for ever of undertaking any financial obligation for the benefit of the workmen in view of the settlement arrived at between the management and the workmen on 29-1-1981'.16. ..... the management is absolved of the financial obligations only for the period during which the settlement ..... not forever, absolve the management of financial obligations. ..... the liberty of the management in appropriate cases to extend financial benefits to any category of workmen, even during the period of the currency of the settlement cannot be approximated to an obligation on its part to concede every demands raised by the workmen although the same is forbidden by the ..... settlement dated 29-1-1981 the management had entered into three further agreements with the workers on 20-8-1982, 29-8-1981 and 15-8-1981 under section 12(3) of the act conceding certain demands which involved financial commitments and, therefore, the pleas taken by the management that the settlement dated 29-1-1981 would operate as a bar was untenable. 7. ..... the mere fact that in some of the cases the management agreed to enter into agreements with workmen in order to confer financial benefits on certain categories of employees cannot be a ground for the second respondent-union to contend that the same treatment should have been extended to the .....
Tag this Judgment!Court : Mumbai
Reported in : [2006]131CompCas747(Bom); (2006)5CompLJ282(Bom); [2006]70SCL93(Bom)
..... up of the petitioner-company on the finding that the petitioner's accumulated losses exceed the net worth and the petitioner is not likely to become viable in future while meeting all its due financial obligations. ..... uti may be justified that no disclosure about the same in relation to unsecured creditors is made in the present petition, that, however, is not non-disclosure of material facts relating to the company such as latest financial position of the company, last auditors report on the accounts of the company, pendency of any investigation proceedings in relation to the company under sections 235 to 251, within the meaning of proviso to section 391(2) of ..... including affidavits filed by the petitioner-company make it amply clear that the proposed scheme in relation to the specified unsecured creditors was confined to the banks and financial institutions so as to scale down the debt receivable by them from the petitioner-company and to provide for arrangement to satisfy the scaled down debts.36. ..... suffice it to observe that the specified or named unsecured creditors in the proposed scheme are banks and financial institutions, the rights and interests of objectors who have been left out were in no way similar to that ..... of an agreement to such other scheme as may be proposed for the banks and financial institutions being unsecured creditors by the requisite majority of the banks and financial institutions being unsecured creditors of ppil as may be directed by the high court of .....
Tag this Judgment!Court : Mumbai
Reported in : AIR1961Bom11; (1960)62BOMLR735; ILR1961Bom101
..... clause 7(a) provides: 'all liabilities in respect of such loans, guarantees and other financial obligations of the dominion government as- arise out of the governance of a merged state, including in particular the liability for the payment of any sums to the ruler of the merged state on account of his privy purse -- shall, as from the appointed day, be liabilities of the absorbing province, unless the loan guarantee or other financial obligation is relatable to central purposes'. mr. ..... they are not, therefore, financial obligations, which pass on to the successor government. ..... kotwal's argument is that financial obligations arising out of the governance of a merged state include the liabilities of the former states in relation to the citizens. ..... justice vivian bose observed : 'in the present case, in so far as the right is claimed on the basis of contract, it would fall to the ground on any view; and in so far as it is not founded on contract, it is an obligation that is sought to be fastened on the new state. ..... the financial liabilities referred to in the above clause are the liabilities incurred by the dominion government in the process of the governance of the merged state. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1987SC1739; JT1987(2)SC504; 1987MPLJ437(SC); 1987(1)SCALE1051; (1987)3SCC99; [1987]3SCR247
..... the act states that the act has been enacted 'to enable the state government to make special provisions for a limited period in respect of industrial relations, financial obligations and other like matters in relation to industrial undertakings the running of which is considered essential as a measure of preventing, or of providing relief against, unemployment ..... all proceedings relating thereto pending before any court, tribunal, officer or other authority shall accordingly be stayed or be continued subject to such modification, so however, that on the notification ceasing to have effect-(a) any right, privilege, obligation or liability so suspended or modified shall revive and be enforceable as if the notification had never been issued; and(b) any proceeding so stayed shall be proceeded with subject to the provisions of any law which may then be in ..... party or which may be applicable to any relief undertaking) immediately before the date on which the state industrial undertaking is declared to be a relief undertaking, shall remain suspended or that all or any of the rights, privileges, obligations and liabilities accruing or arising thereunder before the said date, shall remain suspended or shall be enforceable with such modifications and in such manner as may be specified in such notification.the schedule to the act mentions the ..... are interested to see that the investments made by it and other financial institutions do not get frittered away by avoidable litigation and other legal .....
Tag this Judgment!Court : Gujarat
Reported in : [1984]55CompCas107(Guj)
..... creditors, therefore, filed the aforesaid petition praying that the company which was in insolvent circumstances and unable to meet its financial obligations be wound up. 4. ..... is that the company failed to ship the goods as per the contracts and also failed to refund the pre-shipment advance and thus failed to honour its contractual as well as financial obligations. ..... befell the company mainly due to misdeeds of then directors of the company who, it is alleged, siphoned out the company's money for their personal gains and thereby denuded the company of the vital financial support needed to run the plant; but as this is a matter under investigation by the cbi which has filed charge-sheets in a few cases, i do not think it proper to dilate on the subject ..... . mehta filed another detailed affidavit dated 31st march, 1980, inter alia, contending that (i) nddb had incurred substantial financial losses during the interim working of the unit; (i) there had been gross mismanagement in purchasing of groundnuts, cotton seeds, oil ..... appear from the above that by and large nddb is acceptable to all concerned and since it is assured co-operation from the financial institutions, there is do difficulty in substituting it as the sponsor of the scheme which has received statutory approval ..... . besides, having regard to the company's insolvent circumstances the equity shareholders have no subsisting financial interest in the company and hence what they are to receive under the scheme is clearly in the nature .....
Tag this Judgment!Court : Allahabad
Reported in : 2009(4)AWC3968
..... the act has been enacted to enable the state government to make special provisions for limited period in respect of industrial relations, financial obligations and other like matters in relation to those industrial undertakings the running of which is considered essential as a measure of preventing, ..... before any court, tribunal, officer or authority shall accordingly be stayed or be continued subject to such notification, so, however, that on the notification ceasing to have effect, all rights, privileges, obligations or liabilities so suspended or modified shall revive or revive in their unmodified form and be enforceable and all such proceedings as aforesaid shall thereafter be continued from the stage they were stayed, and ..... under sub-section (1) shall have effect notwithstanding anything to the contrary contained in any other law, agreement or instrument, and any remedy for the enforcement of any right, privilege, obligation or liability referred to in clause (b) of sub-section (1) and suspended or modified by such notification shall in accordance with the terms of the notification be suspended or modified and ..... the date with effect from which the undertaking was declared a relief undertaking, shall be suspended in operation, or that all or any of the rights, privileges, obligations, and liabilities accruing or arising thereunder before the said date, shall be determined and be enforceable with such modifications and in such manner as may be specified in this behalf. .....
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