2012 (12) TMI 1202 - HC - Companies Law

Summary

Issues involved: Petition for winding up of a company u/s Companies Act due to dishonor of cheques and inability to pay debts.

Details of the judgment:

1. Background of the Company: The Respondent company, a private limited company incorporated in 1984, engaged in manufacturing and export of personal products, ayurvedic medicines, and healthcare products.

2. Financial Assistance and Dishonor of Cheques: The Respondent company sought financial assistance from the petitioner through intercorporate deposit. However, post-dated cheques issued by the company towards principal and interest amounts were dishonored, leading to a criminal complaint under the Negotiable Instruments Act.

3. Statutory Notice and Company's Response: The petitioner issued a statutory notice for winding up due to non-payment. The Respondent company acknowledged the debt but requested a 75-day extension for repayment due to fund flow issues.

4. Court Proceedings and Admission of Company Petition: The petitioner served the petition on the Respondent company, which did not appear in court. The court noted the dishonor of cheques, lack of dispute on liability, and the expired extension period, leading to the admission of the company petition for winding up.

5. Advertisement and Future Directions: The petitioner was directed to deposit an amount for advertisement of the winding-up petition in newspapers. The admission order and related directions were kept in abeyance for four weeks, with a future direction hearing scheduled for January 2013.