2012 (6) TMI 559 - HC - Companies Law

Winding up - order admitted winding up petition against appellant company - Order passed without considering any evidence - order is passed based on the contents of the compromise petition filed by the parties - parties were not permitted to aduce the evidence Held that - Points for consideration have to be formulated and answered in the light of the material on record both oral and documentary evidence and the arguments addressed by learned counsel as well as keeping in mind the statutory provisions .order passed do not satisfy the legal requirements - matter is remitted back to the learned company judge to restore the petition to its original file and provide opportunity to the parties to lead evidence

Summary

Issues:
Challenge to winding up order under section 433(e) and (f) of the Companies Act, 1956 based on non-payment of charges and liability denial.

Analysis:
The judgment involves an appeal challenging a winding-up order passed under section 433(e) and (f) of the Companies Act, 1956. The petitioner filed a suit against the respondent for non-vacation of premises and non-payment of license fee. A compromise was reached, but the respondent failed to comply, leading to contempt proceedings and subsequent execution proceedings. The respondent further failed to pay agreed charges, prompting the petitioner to issue statutory notices and file for winding up under section 433(e) and (f) of the Companies Act, 1956.

The High Court admitted the petition and published an advertisement for objections, receiving none opposing the winding up. However, the impugned order did not adequately address the respondent's defense. The court noted that winding up orders have significant consequences and require careful consideration, especially for active companies. The judgment emphasized the importance of stating the substance of contentions, allowing for evidence, framing points for consideration, and ensuring a valid order based on merits, statutory provisions, and relevant case law.

Consequently, the appeal was allowed, the impugned order was set aside, and the matter was remitted back to the company judge for further proceedings. The judgment highlighted the necessity of providing an opportunity for evidence, addressing contentions, and passing orders on merits in compliance with legal requirements. No costs were awarded in this case.