2014 (11) TMI 1160 - HC - Companies Law

Winding up petition - Held that - The Company is unable to pay its debts and deserves to be wound up. The above Company Petition is, therefore, allowed in terms of prayer clause (a) and (b), which are reproduced hereunder (a) that the Respondent Company, i.e. M/s. Indo Bonito Multinational Ltd., be ordered to be wound up by an order of this Hon ble Court. (b) that the Official Liquidator, High Court, Bombay be appointed as Liquidator of the Respondent Company with all powers under the Companies Act, 1956 including the power to take possession of all the assets, books of account, stock in trade, cash on hand, movable properties including future and fixtures as well as all immovable properties of the Respondent Company .

Summary

Issues:
Petition seeking winding up of a company due to outstanding dues.

Analysis:
The petitioner sought winding up of the respondent company, claiming an amount of Rs. 215,11,40,300 due and payable by the company towards outstanding dues of foreign buyers. Despite serving a statutory notice on the company, demanding payment within 21 days, the company failed to respond or make any payment. The petition was admitted by the court, which was satisfied that the company was unable to pay its debts as it neglected to respond to the statutory notice. The court deemed the petition served on the company even though the copy was returned with the remark 'Shifted'.

The court directed the petition to be advertised in local newspapers and the Maharashtra Government Gazette. The notice under Rule 28 of the Companies (Court) Rules, 1959, was returned with the remark 'left', but since it was served at the registered address of the company, it was deemed served. No one appeared for the company, and no affidavit opposing the petition was filed. Consequently, all contentions of the petitioner remained uncontroverted.

Based on the facts and findings, the court concluded that the company was unable to pay its debts and deserved to be wound up. The petition was allowed, ordering the winding up of the respondent company and appointing the Official Liquidator as the Liquidator with extensive powers under the Companies Act, 1956. The Official Liquidator was directed to act promptly on a copy of the order without waiting for further notification. The court disposed of the company petition accordingly.