2011 (12) TMI 266 - HC - Companies Law

Winding up petition - Non payment of dues - PVC supplied under different invoices - Held That - No material has been produced to show that respondent has returned the goods to petitioner. - the material clearly discloses that respondent is due Rs. 92,61,049/- to the petitioner company. Winding up is permitted

Summary

Issues:
- Winding up petition under sections 433(e) and 434(l)(a) of the Companies Act, 1956 due to non-payment of dues by the respondent company.

Analysis:
1. Background and Parties Involved:
The petitioner, a Private Limited Company engaged in manufacturing PVC compounds, filed a petition seeking winding up of the respondent company for non-payment of dues. The respondent company, a consultancy engineering firm, had ordered PVC compound from the petitioner but failed to pay Rs. 92,61,049/- despite repeated reminders and legal notices.

2. Petitioner's Allegations:
The petitioner supplied the PVC compound to the respondent under different invoices, with delivery challans acknowledged by the respondent's authorized officer. Despite reminders and legal notices, the respondent failed to pay the outstanding amount, leading to the filing of the winding-up petition.

3. Legal Proceedings:
The court issued notices, granted multiple opportunities for the respondent to file objections, and even directed the petitioner to advertise the winding-up petition. However, the respondent failed to take any steps to settle the dues or file objections within the stipulated time frame.

4. Respondent's Defense:
During the proceedings, the respondent's advocate contended that the PVC compound supplied was of inferior quality and defective, claiming to have returned the goods. However, no evidence was presented to support this claim, and the court found the respondent liable for the outstanding amount.

5. Court's Decision:
After considering the arguments and lack of response from the respondent, the court allowed the petition, ordering the winding up of the respondent company. The Official Liquidator attached to the court was appointed to take over the assets and liabilities of the respondent company. The petitioner was directed to deposit a sum for winding up expenses and serve a copy of the order on the Registrar of Companies.

6. Final Directions:
The court instructed the petitioner to publish advertisements of the winding-up order in specified newspapers within the designated time frames, emphasizing the completion of necessary formalities to initiate the winding-up process effectively.

This detailed analysis highlights the legal proceedings, arguments presented, and the court's decision in favor of the petitioner based on the non-payment of dues by the respondent company, leading to the winding up order being passed by the court.