Messrs GLOREX TEXTILE LIMITED, KARACHI vs Messrs INVESTMENT

1. ' AJMAL MIAN, C.J.---This is an appeal under section 10 of the Companies Ordinance, 1984 (hereinafter referred to as the Ordinance) read with Order XII, Rule 2 of the Supreme court Rules, 1980 (hereinafter referred to as the Rules) against an order dated 9-9-1996 of the learned Company Judge, High Court of Sindh, Karachi passed in J.M. No,155 of 1995 filed by the respondents under sections 305 and 309 of the Ordinance for winding up of the appellant Company on the ground that despite repeated demands made by the respondents from time to time the appellant had failed and/or neglected to pay the instalments on due dates and, as such, on 14-9-1994 the respondents served a legal notice on the appellant under section 306 of the Ordinance at its registered address calling upon it to pay to the respondents the outstanding amount as on 14-9- 1994 within 30 days from the receipt of the notice, which was allowed by the impugned order. The appellant has, therefore, filed the above appeal under the above provision of the Ordinance read with relevant rules.

2. ' In support of the above appeal Mr. Abdur Rahim Kazi, learned counsel for the appellant has vehemently contended that the appellant was not given fair opportunity to defend the aforesaid petition under sections 304 and 309 of the Ordinance.

3. ' The leaned Company Judge has recorded the following finding against the appellant: "A public notice in respect of institution of this petition was published and a notice was issued to the respondent as well as Joint Registrar, Joint Stock Companies. While no creditor has come forward to explain his point of view, respondent company's Resident Director appeared before the Court on 26-3-1996. On his request three adjournments were granted in order to engage a counsel and to submit a parawise reply but none has been filed. On his part, Joint Registrar of Companies, Karachi has filed his comments stating that their organization has nothing to urge except that the interests of the shareholders and creditors be protected. According to the Joint Registrar, mortgages/charges on account of Industrial Development Bank of Pakistan, Karachi and Investment Corporation of Pakistan, Karachi have been registered in favour of the creditors to the tune of Rs,56,200,000 and Rs,53,250,662 respectively."

4. ' We inquired from the learned counsel for the appellant, as to whether the appellant would be ready to deposit the due amount. He was unable to give reply to the above query on account of want of instruction. However, it may be pointed out that it is an admitted position that the appellant had not paid any amount whatsoever towards its liability mentioned in the impugned order till today. The learned Company Judge has rightly pointed out that the appellant had no defence to the above winding up petition. It is also evident that a public notice was published and the required notice was served on the appellant as well as on the Joint Registrar, Joint Stock Companies. No creditor has responded to the above notice. However, the appellant's Resident Director appeared before the Court on 26-3-1996 and, thereafter, obtained three adjournments.

5. We do not find any merit in the above appeal and the same is dismissed, subject to the observation that in case the appellant agrees to pay the full due amount to the respondents, it will be open to it to apply for the review of this judgment within a period of four weeks.