2001 (12) TMI 801 - HC - Companies Law

Summary

Issues:
1. Failure to pay debt leading to winding up petition.
2. Settlement dispute between company and supplier.

Issue 1: Failure to pay debt leading to winding up petition
The respondent-company, a clearing and forwarding agent, filed a winding-up petition against the appellant-company for alleged negligence in paying a debt of Rs. 3,46,368. Despite notices and opportunities given, the appellant failed to respond or defend the case. The company judge allowed the respondent to advertise the winding-up notice in local dailies. The appellant's counsel repeatedly sought instructions from the company but received no response. Eventually, the company was wound up as it failed to pay the debt, and the Registrar of Companies and official liquidator were informed as per the law. The appellant later filed an appeal, arguing that the company itself was not made a respondent, and proper notice was not served. However, the court found that the petition correctly mentioned the company, and sending notice to the registered office was sufficient compliance. The court noted the lack of response from the company, even during the appeal process, and dismissed the appeal due to the company's apparent disinterest in the matter.

Issue 2: Settlement dispute between company and supplier
In the appeal, the court addressed a settlement dispute between the company and a supplier regarding the amount of Rs. 3,46,000. The court initially granted two months for an amicable settlement between the parties, with a clear directive that if no settlement was reached, the matter would proceed based on merits. Despite the appellant's counsel's efforts to communicate with the company for instructions, no response was received. The court reiterated the importance of resolving the dispute and directed the appellant to ascertain the company's willingness to pay the dues and the method of payment. The court scheduled further proceedings after a month, emphasizing the need for prompt action. The lack of cooperation or response from the company indicated a lack of interest in settling the dispute, leading the court to dismiss the appeal due to the company's non-engagement in the resolution process.

This detailed analysis of the judgment highlights the legal proceedings, the actions of the parties involved, and the court's reasoning in addressing the issues raised in the case.