The court has the discretion to recall winding-up orders under the Companies Act if the applicant satisfies creditor debts and presents a bona fide revival scheme, emphasizing the importance of compliance with legal standards and stakeholder interests.

ORDER :

E.S. INDIRESH, J.

This application is filed under Section 466 and Section s 391 to 394 of the Companies Act, 1956 (for short, hereinafter referred to as 'Companies Act') read with Rules 6 and 9 of the Companies (Court) Rules, 1959 (for short, hereinafter referred to as 'Rules-1959) by the applicant-Mr. Kirit Morzaria, shareholder, Director and Creditor of the respondent- International Coach Builders Ltd., a company under liquidation, seeking sanction of the scheme of arrangement for the revival of the respondent-Company (in liquidation) and to recall the order of winding-up dated 30^th November, 1990 passed by this Court.

2. In the affidavit accompanying the present application, the applicant stated that the respondent-Company (in liquidation) was incorporated under the Companies Act, 1956 with the Registrar of Companies, Bengaluru and copy of the Memorandum of Association and the Articles of Association is produced at Annexure-A. The respondent-Company (in liquidation) is in the business of Body Building of Buses, Lorries and other Transport Vehicles. The capital structure of the respondent-Company (in liquidation) is Rs.1,21,64,000/-. The Annual Report of the respondent-Company (in liquidation) for the year 1989-90 is produced at Annexure-B.

3. It is further stated by the applicant in the affidavit that the respondent-Company (in liquidation) had taken land for lease from Karnataka Industrial Areas Development Board (for short, hereinafter referred to as 'KIADB') and at the time of liquidation, it was left with the leasehold land along with the building constructed therein, including the plant and machinery at Plot No.6 formed out of Survey No.85 of Hoskote Industrial Area, Chokkahalli, Kasaba Hobli, Hoskote Taluk. This Court, by order dated 30^th November, 1990 (Annexure-C) in Company Petition No.131 of 1988 passed an order of winding-up of the respondent-Company (in liquidation).

4. It is further stated in the affidavit that the Karnataka State Financial Corporation (for short, hereinafter referred to as 'KSFC') took over the land and building along with plant and machinery, fixed assets, stocks, raw materials, stores, work-in-progress etc., of the respondent-Company under Section 29 of the State Financial Corporation Act, 1951. Thereafter, the KSFC in terms of the order of winding-up dated 30^th November, 1990 passed by this Court, was allowed to sell the land and plant and machinery. The aforesaid order was challenged in O.S.A. No.26 of 1991, which came to be dismissed on 23^rd January, 1992 and thereafter, the said order passed in O.S.A. No.26 of 1991 was challenged before the Hon'ble Supreme Court in S.L.P.(Civil Appeal) No.4702 and 4703 of 1994. The Hon'ble Supreme Court, by its order dated 05^th March, 2003, set-aside the order in Company Application and reserved liberty to the KSFC to move this Court, for appropriate sale proceedings. Thereafter, Company Application No.934 of 2004 was filed, which came to be allowed on 14^th July, 2006, whereby, the permission was granted to the KSFC to sell the assets of the respondent-Company (in liquidation) in association with the Official Liquidator. It is also stated that, Company Application No.156 of 2011 was filed, seeking leave to publish advertisement for auction of the property. The KSFC had filed Company Application No.1719 of 2006, seeking permission to confirm the sale. In the meanwhile, the applicant in the present application had filed Company Application No.18 of 2007, seeking to implead him in the proceedings. This Court, allowed the application filed by the KSFC and application filed by the present applicant was partly allowed as per order 29^th January, 2007. Being aggrieved by the same, the present applicant had filed O.S.A. No.6 of 2007. This Court, by order dated 19^th December, 2008, set-aside the sale and directed the KSFC to take legal action for sale of assets of the respondent- Company (in liquidation) in accordance with law. The said order dated 19^th Decembe