2012 (9) TMI 1131 - HC - Companies Law

Summary

Issues involved: Petition for winding up u/s 433(e) read with Section 434 of the Companies Act based on non-payment of debt amounting to Rs. 2,26,05,872/- along with interest.

Summary:

1. The petitioner sought winding up of the respondent company based on non-payment of a debt amounting to Rs. 2,26,05,872/- along with interest. The petitioner had rented premises from the respondent and deposited various sums as security and rent.

2. The petitioner deposited a total of Rs. 2 crores with the respondent for the rented premises, along with additional sums for rent. The petitioner later requested the return of the security deposit, which the respondent allegedly failed to refund despite reminders.

3. The respondent's defense was based on a claim that the payment made by the petitioner was part of an incentive scheme for a former CEO, Mr. Anshumaan Swami, and not related to the rented premises. The respondent argued that the sum of Rs. 2.5 crores was paid as part of profit incentives.

4. The court found the respondent's defense to be unreliable and in contrast to the documents on record. It was established that the debt was due and the respondent was unwilling or unable to pay. The petition for winding up was admitted, with a deferred publication of the citation for four weeks to allow the respondent to pay the debt.

5. The court referred to previous judgments emphasizing that defenses raised solely to avoid winding up proceedings should not be entertained. The respondent's failure to reply to the legal notice further supported the petitioner's case.

6. The court concluded that the debt was established within the meaning of Section 434 of the Companies Act, and the respondent's defense was deemed non-creditworthy. The petition for winding up was admitted, with a deadline set for payment of the debt, failing which publication of the winding up notice would proceed.