BIMAL.B.BHASKAR’S PRESENTATION PREPARING & FILING A WINDING UP PETITION AGAINST A DEBTOR COMPANY

How much would it cost? Our Professional Fee would be Rs.30,000/-. In addition to this Professional Fee an amount of Rs.13,500/- for expenses like court fee, conveyance, clerkage, typing charges, certified copies, stationary, process charges etc., representing three years minimum average Rs.4000/ year would have to be paid to us at the time of filing. Expenses for the first year would be Rs.5500/-. Paper publication costs for advertisements in one Telugu and one English newspapers as per the directions of the Court would have to be borne by you. Such advertisements would have to be carried twice i.e on admission of the Company Petition and on final disposal thereof.

How would the amount have to be paid? 50% of the Professional Fee and the entire on account payment of Rs.13,500/- would have to be paid to us by crossed cheque/DD in an account of our choice, in order to enable us to file the case. The balance 50% of the Professional Fee of Rs.15,000/- would have to be paid at the time of commencement of your evidence. We shall raise our bills for the Professional Fee and on account payment. We shall render account of the on account payment at the time of final disposal of the case.Expenses would be on actuals and shall not exceed Rs.4000/-per year.Expenses for the first year would be Rs.5,500/-

PREREQUISITES AN ADMITTED DEBT OVER Rs.500/-BY A COMPANY (PRIVATE OR PUBLIC). A DEBT LESS THAN THREE YEARS OLD - PREFERABLY A YEAR AND A HALF. NOTICE OF DEMAND U/SECTION 434 COMPANIES ACT,1956 INABILITY/FAILURE ON THE PART OF THE DEBTOR COMPANY TO PAY UP THE DEBT FOR A PERIOD OF THREE WEEKS AFTER RECEIPT OF NOTICE BY RPAD.

IS THE DEBT ADMITTED? IN WRITING? IS THE FIGURE ADMITTED ? DOES IT INCLUDE THE INTEREST? HAS THE DEBTOR ADMITTED THE INTEREST RATE ? IF NOT! SECURE A WRITTEN ADMISSION-HOW? (a) By asking for it- stopping supplies till you get it! (b)Getting your auditor to prepare a confirmation of balance statement- presenting it in the inward section of the debtor and getting it acknowledged.

Confirmation of balance! Get your auditor to prepare a letter addressed to the debtor as if the auditor is auditing your books. The letter should indicate: a) the principal due to you; b) the interest due to you; c) the total amount due to you; At the end of the letter the words “Accepted” should be indicated. Get acknowledgement above the word “Accepted”

WHAT NEXT! GET YOUR DOCUMENTS TOGETHER! Purchase Orders; Invoices; Delivery Challans; All correspondence leading up to the acknowledgement; The Acknowledgement; Statutory Notice issued by your lawyer; Acknowledgement card in proof of receipt of legal notice.

What else would you require? A power of attorney/board resolution empowering your authorised signatory to sign the Company Petition! Your statement of account certified by your auditor, indicating total amount (i.e principal+interest) due till date of filing of the Company Petition. With all the other documents got together by you already, to be forwarded to us.

What would we do thereafter? We would prepare the draft winding up petition and forward it to you for your approval. You would go through the draft, modify it if necessary, approve it and return it to us for engrossment. We would engross it and forward it to you along with our vakalat for signature of your authorised signatory and return to us for filing in to Court. In case you are out of Hyderabad, you would also have to notarise both the Company Petition/affidavit verifying it and vakalat.

What would happen after it is filed? After we receive the duly completed Company Petition with all necessary papers we would file it into Court. The Company Petition would be listed for hearing on the next working day for admission. We would argue the case for admission. Generally the Court orders notice before admission. On Notice being ordered, we would serve personal notice on the Respondent. The Respondent Company would enter appearance on the next date of hearing and in case it doesn’t, would be set ex-parte and the Company Petition would be admitted. After admission notice would be directed to be advertised in the newspapers mentioned earlier.

What happens after admission? After admission, once paper publication is effected and reported to Court, your evidence would commence. We would on seeking leave of the Court file the affidavit of your witnesses in lieu of examination- in-chief. After which your witnesses would have to be present for cross-examination by the Respondent Company (in case it is on record and not ex-parte). Similarly the Respondent’s evidence would be led and thereafter arguments heard and judgment pronounced.

How long would the whole process take? The entire process could take between six to twenty four month’s depending on the number of hearings that could be held. As the Company Court sits through out the week, there is every likelihood of expeditious disposal of the entire case within the period, mentioned above.

Thank You! We now look forward to personally interacting with you on any further clarifications you require.