2018 (4) TMI 234 - HC - Companies Law

Winding up petition - Held that - Right of the petitioning creditor to obtain payment of the principal amount of ₹ 5,15,31,045/-, together with interest thereon at the rate of 6% per annum from the date of the notice issued u/s 434 of the Act of 1956 till the date of actual payment has attained finality and this Court does not have any scope to deviate from such finding. Admittedly, the company has failed to pay the entire amount as directed by the said order dated March 26, 2015 and as on today ₹ 2,60,40,089 still remains outstanding from the respondent company to the petitioning creditor. For the above grounds, the application of the petitioner succeeds.

Summary

Issues:
- Winding-up application under Section 434(e) of the Companies Act (1956) for non-payment of dues on transportation charges.
- Dismissal of appeal by Division Bench leading to finality of liability to pay principal sum with interest.
- Application for payment of outstanding amount and advertisement of winding-up petition.
- Company's failure to make full payment and subsequent disputes over admitted liabilities.

Analysis:
The judgment by the Calcutta High Court dealt with two applications, C.A. No.58 of 2017 and C.A. No.119 of 2017, involving a winding-up application under Section 434(e) of the Companies Act (1956) due to non-payment of transportation charges. The respondent company contested the application, leading to a series of orders and appeals. A Single Judge admitted the winding-up application against the company for a principal amount with interest, with directions for payment within a specified period. The Division Bench later directed the company to pay a specific amount in instalments, subject to stay conditions. Despite these orders, the company failed to make full payments, leading to the dismissal of its appeal and finality of the liability to pay the principal sum with interest.

In the subsequent applications, the petitioning creditor sought payment of the outstanding amount, while the company requested a stay on the winding-up proceeding and proposed instalments for the admitted dues. The Court noted the company's failure to pay the entire amount as directed previously, leaving a significant outstanding balance. Consequently, the petitioning creditor's application was granted, allowing advertisement of the winding-up application, while the company's application was rejected. However, the company was granted an opportunity to settle its dues by a specified date to avoid further proceedings.

The judgment emphasized the finality of the liability established through previous orders and the company's persistent failure to make full payments, leading to the Court's decision on the applications. The Court provided clear directives for the settlement of dues and the consequences based on the company's compliance or non-compliance with the specified terms. Ultimately, the judgment aimed to address the outstanding financial obligations and the procedural aspects of the winding-up application in a fair and legally sound manner.