Court orders winding up of Orkay Industries

February 4: Justice M J Lodha of Bombay High Court today directed to wind up the Orkay Industries Limited under the Companies Act following a writ petition filed by 26 creditor companies including Maharashtra Finance Company alleging that Orkay Industries is in default to pay them the loan amount of Rs 30 crore, given by them to the company.

Justice Lodha in his order today appointed official liquidator of Bombay high court and directed to take custody and control of all properties and assets of the company. Justice Lodha further said that looking into the allegation of fraud and misappropriation of funds by the company directors, it is directed that petitioner, creditor as well as other workers are permitted to submit their allegations to the official liquidator.

Justice Lodha said, the liquidator shall issue notices calling upon the directors and officials of the company for their statement under Section 454 of Companies Act within four weeks. If the directors and officials do not comply to the notices,the liquidator has the liberty to launch proceedings against them,” he added.

While further directing the officials and directors, Justice Lodha said that it will be open for the official liquidator to advertise appointment of agents for running three factories, one at Patalganga and two in Mumbai within six weeks.