1993 (10) TMI 272 - HC - Companies Law

Summary

Issues:
Winding up petition based on inability to pay debts, dispute over goods supplied, defense raised by respondent company, payment of outstanding amount.

Analysis:
The petitioner filed a winding-up petition against the respondent company, claiming unpaid balance for goods supplied. The petition detailed the supply, invoices, and unpaid bills totaling Rs. 85,367.78. The respondent acknowledged paying the first five bills but disputed the last two bills' quality, informing the petitioner via telegram. The respondent claimed they were only liable to pay Rs. 8,363 for the goods supplied incorrectly. A previous court order directed the respondent to deposit the admitted amount, but the respondent sent a cheque directly to the petitioner, which was not encashed due to non-compliance with the court order.

The court noted the respondent's timely dispute regarding the quality of goods supplied, as evidenced by the telegram informing the petitioner. The defense raised by the respondent was deemed genuine and bona fide, not an afterthought to evade payment. Consequently, the court dismissed the winding-up petition, emphasizing the legitimacy of the respondent's defense. Regarding the ordered payment of Rs. 8,363, the petitioner agreed to accept the amount without prejudice to their rights, upon receiving a fresh cheque from the respondent.

In the final order, the court dismissed the petition without costs, instructed the petitioner to return the original cheque, and directed the respondent to issue a new cheque for Rs. 8,363. The court also expedited the issuance of a certified copy of the judgment for both parties' records.