1989 (2) TMI 317 - HC - Companies Law

Summary

Issues:
Petition under sections 433, 434, and 439 of the Companies Act, 1956 for winding-up order based on non-payment dispute for the supply of HPDE bags.

Detailed Analysis:

1. Facts of the Case:
The respondent-company invited tenders for HPDE bags, and an agreement was reached with the petitioner for the supply of 1,50,000 bags. Disputes arose regarding the supply of 50,000 bags, leading to intervention by the Chief Minister. The petitioner supplied 60,000 bags, but payment was withheld by the respondent.

2. Contentions of the Parties:
The respondent claimed financial stability and disputed the payment for the extra bags supplied by the petitioner. The respondent contended that the rates for the additional bags were not agreed upon and remained unsettled.

3. Payment Dispute and Short Payment:
The respondent made a short payment for the supplied bags, calculating the rate at Rs. 4.14 per bag instead of the agreed-upon rate of Rs. 5.75 per bag. The court found this short payment unjustified and ordered interest payment at 9% per annum from the date of delivery.

4. Legal Analysis and Decision:
The court applied Section 61(2) of the Sale of Goods Act, 1930, to award interest on the unpaid price of the goods. The respondent failed to provide a valid defense for the non-payment, leading to a prima facie case of inability to pay. The court directed the respondent to pay the full price for the bags supplied, along with interest, within one month.

5. Final Judgment and Order:
The court ordered the respondent to pay for 1,60,000 HPDE bags at the agreed rate, along with interest at 9% from the date of delivery. The respondent was given one month to make the payment, failing which the winding-up petition would be advertised as per the Companies (Court) Rules, 1959. The case was scheduled for further orders on a specified date.

This judgment highlights the importance of honoring contractual agreements, the legal implications of non-payment disputes, and the court's authority to enforce payment obligations under the relevant laws.