2003 (12) TMI 338 - HC - Companies Law

Summary

Issues:
Petition for winding up of respondent-company due to unpaid debts and interest.

Analysis:
The petitioner filed a petition seeking winding up of the respondent-company due to an outstanding amount of Rs. 3,77,950 along with interest at 24% per annum, claiming that the respondent is unable to pay the debts. The respondent, upon receiving notice, contested the petition by asserting commercial solvency and denying any agreement for interest payment. However, during the proceedings, the respondent voluntarily paid the claimed amount through two demand drafts totaling Rs. 3,78,000. The petitioner argued that interest should also be paid from the date of the petition. The court noted that since the entire claimed amount was paid by the respondent, it refuted the petitioner's claim of insolvency and supported the respondent's assertion of commercial solvency. Consequently, the court found no basis to entertain the petition further.

The court clarified that while the petition was dismissed, the petitioner retained the right to claim interest from the date of the petition until the present. The dismissal of the petition did not preclude the petitioner from pursuing the interest claim through appropriate legal channels outside the company court. Therefore, the company petition for winding up the respondent was rejected, but the petitioner could pursue the interest claim separately in a different court if desired.