Law: Companies Ordinance, 1984

Section: 305 , 306

P L D 1998 Karachi 238 Judicial Miscellaneous No.40 of 1990, decided on 18th December, 1997 Companies Ordinance (XLVII of 1984)--- ----Ss. 305 & 306---Banking Companies (Recovery of Loans) Ordinance (XX of 1979), S.6(4)---Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997), S.28---Petition for winding up of company for its failure to pay debt---Maintainability---Winding up application was maintainable under provision of S.305, Companies Ordinance, 1984 for inability of defendant (Company) to pay its debt---Bar of jurisdiction, if any, would arise in suit exclusively triable by Special Banking Court and not in petition for winding up of company---Petition for winding up was maintainable and within jurisdiction---Maintainability of petition for winding up would not be barred either by Banking Companies (Recovery of Loans) Ordinance, 1979 or by the Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997---Winding up proceedings would not be substitute for recovery of loan amount and prayer before Court was not for recovery of loan amount- -Objection of jurisdiction of Court being hypertechnical and without any substance was repelled in circumstances. Companies Ordinance (XLVII of 1984)-- ----Ss. 305 & 306---Petition for winding up of company for its inability to pay its debts---Defendant (Company), despite its commitment before Court to pay its debts to plaintiff in earlier proceedings, had failed to fulfil same---Defendant, thus, appeared to have lost its substratum and was no longer in position to pay heavy debt due against it despite the lapse of long period, therefore it was just and equitable to direct winding up of company---Winding up of company was ordered in circumstances. Date of hearing: 16th December, 1997   JUDGMENT This is a winding up petition filed under section 305/306 of the Companies Ordinance, 1984 (hereinafter referred to as the Ordinance) on the ground mainly that the respondent mills has not been able to pay debt amounting to Rs.15,931,642.17. Petitioner BCCI presently incorporated as Habib Credit and Exchange Bank Limited is a Banking Company whereas the respondent is a…