The central legal point established in the judgment is the court's authority to appoint a provisional liquidator and issue necessary directions under the Companies Act when a company is unable to pay back its debt.

D. N. Patel, J.

1. Having heard learned counsel for both the sides and looking to the facts and circumstances of the case, it appears that sizable loan amount has been given by this petitioner-Bank to the respondent-Company and the respondent-company is unable to pay back even the principal amount. These facts have been narrated, in detail, in the order dated 29th July, 2016, passed by this Court in this matter. The total principal amount of loan comes to Rs.3,90,00,000/- approximately. This amount is to be recovered by this petitioner-Bank with interest. Necessary notices have also been given by this petitioner-Bank to the respondent-Company.

2. Several adjournments have been taken by the respondent-Company to make, at least, part payment to this petitioner-Bank, but, nothing has been paid at all. In fact, this Court was to appoint provisional liquidator much earlier, but, the respondent-Company had tendered a cheque of Rs.10,00,000/- to the petitioner-Bank in this Court. The said cheque has been dishonored for want of sufficiency of the fund. This is the behaviour of the respondent-Company. Thus, it appears that the respondent-Company is unable to pay back its debt and, hence, as per Section 433(e) of the Companies Act, 1956, respondent-Company may be wound up, as submitted by the learned counsel for the petitioner-Bank. Further, it appears that as per Section 434 of the Companies Act, 1956, necessary notices have also been given to the respondent-Company, but, despite this fact, the respondent-Company is unable to pay back its debt.

3. I, therefore, appoint provisional liquidator for respondent-Company under Section 450 of the Companies Act, 1956. Notice has already been given by this Court and this Court has also perused the reply, filed by the respondent-Company and looking to the reply, filed by the respondent-Company, it appears that the respondent-Company is unable to pay back its debt due to the petitioner-Bank. The provisional liquidator will exercise all the powers, vested in him under the Companies Act, 1956, as a liquidator of the respondent-Company.

All the four Directors of the respondent-Company will not work as Directors of the respondent-Company, till further orders of this Court and the provisional liquidator will take charge of the respondent-Company.

None of the Directors of the respondent-Company will either use the vehicles or the mobile or any other perks, provided by the respondent-Company and if they are in possession of any vehicle, mobile or any other thing, provided by the respondent-Company, they will immediately surrender the same to the provisional liquidator, appointed by this Court. The respondent Company shall not pay any kind of bills henceforth from today of the mobile etc., supplied to the Directors, including Managing Director of the respondent-Company. If the Managing Director and/or the Directors are in occupation of any residential accommodation, provided by the respondent-Company, they shall vacate the same within a period of fifteen days from today and the provisional liquidator will take charge of the said residential accommodations, if any, provided to the Directors, including Managing Director.

Further, if any loan has been taken by the Managing Director and/or Directors from the respondent-Company, this fact will be highlighted by the provisional liquidator by the next date of hearing.

4. The respondent-Company operates bank account bearing No. 10413535218 of the State Bank of India, SME Branch, Adityapur, Jamshedpur. This bank account will not be operated by the Managing Director of the respondent-Company and necessary signature etc. will be taken by the State Bank of India of the provisional liquidator and the said bank account shall now be operated by the provisional liquidator. Till the formalities for operating the bank account by the provisional liquidator is completed, the Bank is hereby directed not to allow any withdrawal, without permission of this Court. However, th