2008 (11) TMI 719 - HC - Companies Law

Summary

Issues involved: Application u/s 433 and 434 of the Companies Act, 1956 for unpaid bills for goods sold and delivered.

Judgment Summary:

Petitioner's Case:
The petitioner claimed that the company owed them Rs. 2,56,849 for goods sold and delivered between April 2005 to March 2006. Despite receiving bills and partial payments, the company failed to settle the outstanding amount. A statutory notice was sent under Section 433 of the Companies Act, but the company did not respond, indicating its inability to pay debts.

Company's Defense:
The company argued that some bills were duplicated, making the claimed amount inaccurate. They contended that the petitioner failed to provide necessary documents and that the statement of accounts was disputed and unsigned. The change in management was also highlighted, questioning the validity of the claims.

Court's Decision:
The court found that the statutory notice was issued before the change in management, and no valid defense was presented regarding the disputed bills. The court concluded that the company's defense was unjustified, as payments were made and goods were received. The change in management was deemed an attempt to delay payments, leading to the dismissal of the application.

Later Decision:
A stay was refused, and parties were directed to obtain a xerox certified copy of the judgment upon completing formalities.