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NATIONAICOMPANY

LAWTRIEUNAL
AHMEDABAD
EENCH
AHMEDABAD
cp No. 4lZ 4(21/ NCLT/ AHM/ zO16

Coram:

PreseneHon'ble Mr. BIKKIMVEENDRA BABU

MEMBER
JUDICIAL
ATTENDANCE.CUM-ORDER
SHEETOF THE HEARINGOF AHMEDABAD
-E,:cq cF THE:u-aTICgl! 4oripar:y !1,,r,,Tp.1;3!)r,,+
cN 2.1.2017
Nameof the Companla
sectionof the CompaniesAct

Seciion74(2)of the ComoaniesAct 2013

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ORDER
Ms BarkhaDeshmukljpresent
on behalfof Leamed

CS Mr. Devesh Klandelwal for

OrdrFEouacd i'r opencoun. Vide


spa.areorderanachd.

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larxxr nel'nnlon i nlnut"
Daledthis lhe 2"dday ofJanuary,
2017.

Mf,MBERJUDICIAI,

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BEFORE THE NATIONAL COMPANY LAW TRIBUNAL


AHMEDABAD BENCH
AHMEDAAAD
COR{M: SRI BIKKI R{VEENDRA BABU.MEMBER (JUDICIAL)
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ORDfR
pronoEncd
oE:2.1J017
Ttis Petiiionhavingcomeup fo. hearingbeforethisTriblnaton 18.11.2016
in the
presence
of Mr- N{.N.MarfatiaAdvocatefor peiitionerandMr. HariharaSahoo,
Depui!Registrar
ofCompalies.
OfficecfRegish"rofComl3r.ies,
Madhyapradesll
G*alior and h?.,ing stood over for coi.iideraa;onrill tlns date. dis Tibunal
pronounced
the followingfinalorderoo 2.1.:ti 7.
FINALORDER
pharmaceuticals
1. ThisPetitionis filedbyPlethico
ltd. havingits rggistered
ofEce
at A.B. Road,Manglia,Indore-452003,Madhyapradesh,
herinafter
calledas
-Pedtioner
colllpar! . undersffrion7,+(2)
of rheCompanies
Act,20l3 readwith
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ofFixed Deposits
meDlioned
in para15.6ofthe peiirjon.
L Tle Per;lionercompanyis engagedin rhe busine\!of manulacruring
and
narketng ofwide rdngeofphannaceuticalformulatioN,nutmceuticals,
herbals,
lozenges,catdies,hospitalconsumables,
foodanddietarysupplements
andmany
orherconsumer
andhcrhhcare
pR,Cu.ljin Ind.aard ir!i.rrnationally
lo severd
keymarkets
across
theglobe.
3. The subscribed
and paid up sharecapitalof the ?etitionercompanyis Rs.
4.06,66.610- diliinl ;nroi.d4.65,667
rquirvsb"rscfFr. lC eac!.

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companyis facingdifficultyin
4. As perthe avementsin thepetition,Petitioner
repa)qnentof deposits received and pa,Tnent of intosts theron due to
temporaryliquidity crisis attributablelo the lollowing rasons:i. Department
of IncomeTax hasfreezedCompany'saccouffu/s 226(3)of
.
In.oneTa\ Acl-1961
The Compa.n)suppliesi6 products!o FrenchWest Africa, CIS courtries,
in various
SouthEastAsia,GCCCourtriesetc.Duetothlecentfluctualions
cunencies
across
theglobevis-e-visUS dollaN,thelocalcurenciesofthese
morcihan30%
in somelases
substantially,
counlries
havedepreciated
havinglargeexportbase(approx.70%ofthe totaltumover),
tn. TheCompany
foreign exchangefluctuationand deprcciationof cu.rencies
\.rnprecedenled
the liquidiryfor the
US dolla$ hai aggravated
acrossthe globevis-ar-vis
peiiod,andalsoeffecledby
Companyby way ofincreasein debtrealisation
thereof.
distnbutonandcollection
\.a} ofreduclionofprofitsofrespective
fiom department
of incometax,freczingofaccountandincrease
Recoveries
in Cebtors'realisationperiod has substantiallyaffEctedcash flow of the
Company,andcrcatedierrlporaryliquidiii cruncir.
The Companyhastakendueaclionsfor possiblerecoveriesandstrearnlineof
the sales.However,the sameshalltakesometime to streamlinecashflow of
theCompany.
ihe Banke$to revse the
The Companyhadlrom time to time approached
its incieasingooentionalrequircments'
wo*itrg capitallimits for addressing
the Lead
however,the Bank's rsponsewasnot encouaging.Subs'equently,
Banker of the Companyrelened the Companyfor implementationof the
proposing
to infuseadditional
scheme
underCDRmechanism,
resiructudng
otherbanlsdid notsupportthesame.
workingcapitalhowever,
The Companyis unableto raisefreshfundsfor repaymentofFixd Deposits
dueto the factthatFCB bondholde$hadfiled windingup petitionagainsl
the Companybeforethe Hon'ble IndoreHigir Court.In the said\'r'indingup
Petition,the Hon'ble IndoreHigh Cout hasappointedLiquidatoradmitting
by
thewindingup petition.Thesaidwindingup petitionis bingcontested
the Company-

C3. \o. 4n4{2)NCLT/AHI'20I6

5. It is furtherstatedin the PetitionthatpetitionerComparyhastakenthefollowing


meuiuresin orderto streamlinethe opemtionandaecoverjes
towardspalmentto
thedepositholders:i. The Companyhasalteredproductmi\ havingrelativelylessercreditperiods
IikePharrDa
Gene.icProducts.
n Ib CoBI-ny hr. &veloFcdsalesby uderalciag na*eting in geogmphical
segmerthayingrclatively lsserqedit cycle.
iii. ThecompanyhassetupCreditMonitoringCon}mifteto setlimits customer
wrseard controllingandstoppingsalesto custdmerswith dueaboveprc-set
crcdit levels.
iv. The Companyhasundena.ken
ag$ssivecollecdcnprogramby offering
discountq
andspe.ialoffersfof encolrraging
collections.
6. As caDbe seenftom the Fufher AfEdavitfild by the petitione.,asmanyas236
depositors
filed Applicationl070/2014
andbalchLeforeCompinyLrw Board,
MumbaiBencb Mumbaiagainstthe peritionerCompanyuider Section5gA(9)
ofthe CompaniesAci, 1955,presentseciirn?4 oicompades Aat, 20i 3 wierin
the Hon'ble Member (Judicial)by his Order dated27,6.2014directedto pay
arearsofintercst accrudon FDRSto thereapectivefiied depositholdercwithin
a period of 30 days and keep on paying the interestto be accruedon FDRS
.egula.ly,asper the termsofthe FDRSto the respectiveFixed DDositholders_
7. Furtheras manyas I28 depositholdersfield ApplicalionNds. 2291
A of 20I
and batch before Company Iaw Board, Mumbai Berch, Mumbai against
petitionerCompanyundersection58A(9) of theCompariies
Act, 1956wherein
the Hon'ble Chairmanof the CompanyLaw Boardorderedthe Companyshall
pay the amount due along with interestat contractualmte acdued thron
throughdemanddraft in termsofthe unCerlalcing
given by the Conpany to th
depositors-In the saidOrder,the Companyis dircctedto pay the depositholders
on oi before30.4.2014
in caseofthosewhosedeposits
arenotmaturc.

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8. In ihe Fwther Affidavit, i! is ststadthat ROC filed Criminal Caseno. 1627of


20I 5 againstthe PetitionerCompanybeforeChief JudicialMagistrate,Cwalior
allegingviolationolsection74 olthe Companies
Act,2013.
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a r#E&rating

i: Jre Furler -{ffidq|it that the Govenmentof Maalhya


dd

1661015 dc.laEd6a rhe Pe*itioDrCoEpatry

fcr a Fiod of oneyer-rtom ihe dateof notificationunder

s(DonI of \t-P. ShE'raUpk"ramfvisheshUpbandha)


AdhiniyanLla78 and
the said lioti6carioD erasextndedfor a periodof one year Fom | 6.5.20I o by
way of anotherNotificdioo dated19.92016on mndition that within 30 days
from 19.9.2016,the Companyshall submitorc time selilementproposalto the
banfts/finincial instit:lioN for their outstardingdues and cn condition that
Companysha1lpay interestregularlyto thebanken/finaocialinstihrtionsduring
IheFriod of relief udertakine.
10.The FurtherAffidavit alsodisclosethat the CompanyPgtitionno. 35/2013filed
againsttie PetitionerConipanyfor wiixiing up_isiending beforethe Hon'ble
High Court of Madhya Piadesh,benchat Indorb andlin the said Company
Petition,
Pelitioner
Company
filedlA 475q'2015
seeking
slayof lhe fudher
proceedings
in CompanyPetitionno.35/2013.The Hon'bleHig! Coud of
VadhyaPradesh
considering
t-he
effectofsecrion3 ofrbeM.P.Shayata
Upharam
(\rtsbsbtlpbaodha)Adhidy.m. I 9?8.orderedfor staycf firnherproceedrngsin
rhewindinguppel;tion
pa5sed
rill 16.6.2016
in Lhe
bultheorderdated7.4.2015
provisional
windinguppetitiorappointing
liquidatotshallnotbeaffected.
I L ll is pemnentro mntionherelhalihe Peljtioner
wifiout disclosing
all
Company
th facts,filed this Petition.Iater asper the oral submissionof the LeamedCS
lbr thePetitioner
madeon 13.10.2016,
iiled lurtheraffidavitsiaiiig thetrueand
correctaffairsofthe PetitionerCompany.
i2. Whil this Petitionis at ihe admissionstage,the Registrarof Companies,
MadhyaPradesh,Gwalicr iled IA 3Cl20i 6 to inpiead the ROCMadhyaPradesh
as a party to this Petition.In the saidApplicatior, the ROC also statedthat the

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Conpany hasnot compliedwith the orderspassedby the CompanyLaw Board


previously
by theMadhya
andtheconditions
laiddownin theNotificationissued
PradeshGovemmentunder Section3 of M.P. ShayataUpkaram(Vishesh
Upbandha)
Adhiniyam,1978.
13.Tte point for consideratioD
is wherhrCP4/2016cal]beadmittedandany relief
canbe grantedto the PetitionerCompany.
14.Perused
theentirematerial
onrecord.Heardtheargrments
ofleamed Advocate
for Petitioner
andDeputyRegistrar
Gwalior.
ofcompanies,
MadhyaPradesh,
l5.Th mateial on rccordshow that the Pet:lioneiCompanyhas to pay Rs.
136,9?,44,755
to thedepositors
numbering
i8,968videDPT4 Columnno. 5.
16.A perucai
lheCompanj
of rhecash
flowsEtement,
balance
ardurmoverof
sl-eet
for the last two precedingfinancialyearsannexdto the Petitionshowthat the
l-nancial
position
ofrhe compan)
is notat all augmenring.
Theso-calleo
srepc
Pelirioner
companycldimslo havelakenor planningto takecannotaffordan1
guaEnteeofrepaymentofdepositsto thedepositholders.Moreover,thematerial
onrecordconclusively
establishthatpetitionerCompanymorelhan
onceviolated
givenb)' the Company
thedirectiorls
Law Board,MumbaiandtheCompanyjs
alsofacingprosecutionbeforccriminalcourt.
l- Com;ngtolhe
\oli[icarjons
under
issued
byrheMadhya.Prodesh
Co\emmcnr
Seclion
J of rheM.P.declarirg
rhePerir'oner
a. a reliefundenakirg'
Corrpony
till 16.6.2017
is subjectto certainconditions
laiddownin theNotificationdated
19.9.2016.
It is not thecaseof thePelitioner
Company
thattheyhavecomplied
rvith the conditionsmentioned
Therefore,
in the Notificationdated19.9.2016.
PetitionerCompanycannotclaim protectionunder the Notificationdated
19.9.2016.
Evenotherwise,
thesaidNotificationis issuedwith a viewto provide
relief againstunemplo),mentand also to safeguardthe inierest of the labour
working in ths i.rdustrialcompany.

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c.i'.No.414(2tNcLT/N$t'2o16

18.Comingto the winding up petitionpendingbeforethe Hon'ble High Court of


MadhyaPmdesh,it is stayedonly till 16.6.2016.No orderis placedbeforethis
Tdbunal to show that the Stay order has ben extendedpursuant to the
underSection3 of
issuedby theM.P.Govemment
Notificationdated19.9.2016
the M.P. ShayataUpkaram(VisheshUpba4dha)Adhiniyam,1978.
19.Wlen the Petitionercompanyis not at all takirg any effectivestepsand it is
violating the orden passedby the Companyfaw. Board, and in view of the
pendencyof the winding up petition,it is not eDtitledfor any extensionof time
to rcpai the depositsto the depositholders.
stageitself. No orderas
20. Irr drs resi t, this Petidonis Cismisse,lat thc ad-.nission
lo cosls,
21. Ordertypedby me andpronouncedby me m open cortlton mrstne1"" oayor
Iaruary,2017.

MEMBER (JUDICIAL)
Datedthisthe2"ddayofJanuary,2017.