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Issues Involved:
1. Whether the petition for winding up of the respondent company is maintainable. 2. Whether the claim of the petitioner is barred by limitation. 3. Whether the time spent in prosecuting the earlier petition should be excluded under section 14 of the Limitation Act, 1963. 4. Whether the debt is bona fide disputed and the implications for winding up under section 433(e) of the Companies Act, 1956. Summary: Issue 1: Maintainability of the Petition The petitioner filed a petition u/s 433(e) read with section 434 of the Companies Act, 1956, seeking winding up of the respondent company, M/s. Doctor Morepen Limited. The petitioner, a printing press, claimed unpaid dues for services rendered in 2002-03. The respondent's cheque for Rs. 1.50 lakh was dishonoured twice. The petitioner issued a demand notice and filed a Company Petition in the High Court of Himachal Pradesh, which was later withdrawn due to lack of jurisdiction. The petitioner then filed the present petition in the High Court of Delhi. Issue 2: Limitation of the Claim The petitioner sought condonation of delay u/s 14 of the Limitation Act, 1963, arguing that the time spent in the Himachal Pradesh High Court should be excluded. The court noted that no limitation period is specified for filing a winding-up petition u/s 433 or 434 of the Companies Act. However, the court must consider whether the debt claimed is within time. The last payment was made on 7-3-2003, and the suit for recovery could be filed until 6-3-2006. Since no suit was filed, the claim became time-barred. Issue 3: Exclusion of Time under Section 14 of the Limitation Act The petitioner argued that the period from 20-12-2004 to 14-7-2005, when the petition was pending in the Himachal Pradesh High Court, should be excluded. The court held that section 14 applies to civil proceedings prosecuted with due diligence in good faith in a court that lacked jurisdiction. However, a winding-up petition is not the same as a suit for recovery, and thus, the time spent in the winding-up petition cannot be excluded for computing the limitation period for recovery. Issue 4: Bona Fide Dispute and Winding Up The court cited precedents stating that a winding-up petition is not a legitimate means to enforce a debt that is bona fide disputed. The court must determine if the debt is bona fide disputed and if the company is commercially solvent. The court found that the petitioner's claim for recovery was barred by time and that initiating winding-up proceedings for a time-barred debt is inappropriate. The court emphasized that winding-up should not be used merely to realize debts. Conclusion: The petition for winding up was dismissed as the claim for recovery was barred by time, and there were no grounds to initiate winding-up proceedings against the respondent company. The machinery for winding up cannot be used to realize time-barred debts.
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