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Winding up petition based on inability to pay admitted debts. Analysis: The petitioner sought winding up of the respondent-company due to its inability to pay the admitted debts. The petitioner claimed an outstanding amount of Rs. 24,08,509 for the supply of pig iron along with interest on delayed payment. Various notices were sent to the respondent, including a statutory notice under section 434 of the Companies Act, but no response was received. The respondent failed to settle the account, leading to the winding-up petition. The respondent argued that it was a member of an Industrial Organisation Association negotiating prices with pig iron suppliers for bulk orders. The respondent faced closure due to a stop in the supply of raw material at negotiated prices, leading to business challenges. Reference was made to specific orders, partial supplies, and assurances from the petitioner regarding losses and future supplies. The court analyzed the transactions between the parties from 1997 to 2000, highlighting discrepancies in rates claimed by the petitioner and the respondent's payments. The respondent's defense was deemed lacking bona fide by the court. The respondent's inconsistent actions, including payments made despite claims of outstanding amounts, raised doubts about the credibility of the defense presented. Ultimately, the court found no merit in the respondent's plea to recall the order of admission. The court ordered the re-publication of the admission in specified newspapers and listed the case for further proceedings. The judgment emphasized the importance of clear and categorical responses in legal proceedings and concluded that the respondent was unable to pay its admitted liabilities, supporting the winding-up petition.
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