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by Admin
07 May 2024 2:49 AM
In a significant ruling, the Delhi High Court has ordered the dissolution of M/s Amrit Worldwide Ltd., a move that brings an end to a prolonged winding-up process that began back in 2000. Justice Dharmesh Sharma presided over the case and passed the judgment on November 23, 2023, underlining the inability of the company to procure any assets for liquidation or realization.
The Official Liquidator, appointed since 17th May 2000, filed an application under Section 481 of the Companies Act, 1956, highlighting the fruitlessness of the winding-up process. The company was initially ordered to wind up on 10th August 2004, but since then, no substantial progress had been made in realizing assets to satisfy the company’s creditors.
The Court also took Into consideration a prior application under Sections 542 & 543 of the Act, aimed at holding the ex-directors personally liable. However, this application was dismissed earlier this year, on 21st February 2023, due to the demise of the concerned ex-directors and the absence of actionable claims.
Justice Dharmesh Sharma’s observation was pivotal in the verdict. The judge noted, “When the affairs of a company have been completely wound up or when the Court is of the opinion that the liquidator cannot proceed with the winding up of a company for want of funds and assets or for any other reason whatsoever, an order of dissolution of the company should be made.” This statement formed the backbone of the court’s decision to dissolve the company.
The ruling also referenced the principles laid down by the Supreme Court in the case of Meghal Homes(P) Ltd. V. Shree Niwas Girni K.K. Samiti & Ors., underscoring the finality of the dissolution process in cases where a company’s affairs have been fully wound up or when continuation is deemed impractical.
Date of Decision: 23 November 2023
IB & W COMMUNICATION P. LTD. VS M/S AMRIT WORLD WIDE LTD.
