2011 (12) TMI 270 - HC - Companies Law

Winding up - computers, laptops and peripherals were given on rental basis - Total hire charge 54,01,595 and 19,41,499 were outstanding - 29 laptop were not returned - petitioner demanded winding up - Held That - No document has been produced to show that they had returned 29 laptops. Ledger extract has been sent to the respondent along with the statutory notice, but the respondent has not replied to the said notice.There is a wilful negligence on the part of the respondent in not paying the debts dues to the petitioner.

Summary

Issues involved:
Petition seeking winding up of respondent-company for non-payment of dues under Companies Act, 1956.

Analysis:
1. The petitioner, a private limited company, provided computers and laptops on rental basis to the respondent-company, which failed to pay the outstanding hire/rental charges totaling Rs. 19,41,499/-. Despite reminders and a statutory notice, the respondent did not settle the dues, also failing to return 29 laptops taken on rental basis.
2. The respondent denied liability, claiming to have paid the full amount and returned the laptops. They argued against interest charges and disputed the petitioner's claims, alleging professional misconduct and financial stability, contending the petitioner's interference with their clients.
3. The court reviewed the evidence, including invoices, email correspondence, and ledger entries. The petitioner demonstrated the debt acknowledgment and non-return of laptops by the respondent. The respondent's defenses lacked substance, with no evidence of laptop return or objection to the statutory notice.
4. Citing legal precedent, the court held that in cases of undisputed debt, the court need not require precise quantification, especially when the debtor disputes the amount without substantial grounds. The respondent's disputes were deemed baseless, indicating willful negligence in payment.
5. Consequently, the court admitted the petition for winding up the respondent-company, directing the petitioner to advertise the same in a newspaper and set a hearing date.

This detailed analysis of the judgment highlights the key arguments, evidence, legal principles, and court decision regarding the petition seeking winding up of the respondent-company for non-payment of dues under the Companies Act, 1956.