2013 (12) TMI 1752 - HC - Indian Laws

Issues Involved:

1. Non-payment of dues by the respondent-company.
2. Authenticity of debit notes issued by the respondent.
3. Alleged concealment of payments by the petitioner.
4. Validity of cheques issued by the respondent.
5. Allegations of false invoices by the petitioner.
6. Insolvency and winding-up of the respondent-company.

Issue-wise Detailed Analysis:

1. Non-payment of Dues by the Respondent-Company:

The petitioner, Alka Exim Pvt. Ltd., sought the winding-up of the respondent-company under Section 433(e) and (f) of the Companies Act, 1956, for non-payment of Rs. 2,55,11,173/-, which included a principal amount of Rs. 2,18,43,881/- and interest of Rs. 36,67,292/-. The respondent-company purchased fabrics on credit but failed to honor post-dated cheques issued to settle the dues. The statutory demand notice under Section 434(1)(a) of the Act was issued, but the respondent failed to respond, leading to the filing of the winding-up petition in April 2010.

2. Authenticity of Debit Notes Issued by the Respondent:

The respondent claimed the issuance of debit notes totaling Rs. 70,52,864/- for defective goods, which the petitioner allegedly did not account for. However, the court found discrepancies in the respondent's debit notes, which lacked details, were not in printed form, and were unsupported by challans. In contrast, debit notes acknowledged by the petitioner were detailed and supported by proper documentation. The court deemed the respondent's debit notes as an afterthought and unreliable.

3. Alleged Concealment of Payments by the Petitioner:

The respondent contended that payments amounting to Rs. 76,25,000/- were made but not accounted for by the petitioner. However, the court verified that payments totaling Rs. 75,75,000/- were duly reflected in the petitioner's ledger account. The court dismissed the respondent's claim of concealment as inaccurate.

4. Validity of Cheques Issued by the Respondent:

The respondent argued that undated cheques were issued as security and not for existing debts. The court noted that the cheques were dishonored, and the respondent failed to rectify the issue by issuing properly signed cheques. The court emphasized that the dishonor of cheques, regardless of the reason, indicated the respondent's inability to pay its debts.

5. Allegations of False Invoices by the Petitioner:

The respondent alleged that the petitioner raised false invoices to cover up the debit notes. The court found no evidence supporting this claim. The petitioner's statement of outstanding balance and ledger accounts were consistent, and the alleged discrepancies were unfounded.

6. Insolvency and Winding-up of the Respondent-Company:

The court considered the respondent's admission of financial turbulence and the absence of credible defenses against the petitioner's claims. The court concluded that the respondent was unable to pay its debts and admitted the winding-up petition. The Official Liquidator was appointed as the Provisional Liquidator to take control of the respondent's assets and affairs. The court directed the publication of the winding-up petition and ordered the respondent's directors to comply with statutory requirements for furnishing a statement of affairs.

In conclusion, the court found merit in the petitioner's claims and ordered the winding-up of the respondent-company due to its inability to pay the outstanding debt.

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