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TMI Blog1986 (2) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner-company for turnkey installation of a 50 T.P.D. Sulphuric Acid Plant (hereinafter referred to as "the plant") at Ropar in the State of Punjab. The petitioner duly performed its part of the agreement, installed the plant and handed it over to the respondent. At the time of handing over the plant an amount of Rs. 14,48,740 was due from it to the petitioner. In addition to the said amount, the petitioner did some other work and an amount of Rs. 4,76,063.63 was due to it from the respondent. The respondent was also liable to pay interest to the petitioner at the rate of 18% per annum which came to Rs. 11,87,078 up to March 31, 1983. The petitioner wrote several letters to the respondent to pay the said amount but nothing was paid. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the amount of Rs. 14,48,740, the petitioner had received an amount of Rs. 1,20,000. Consequently, they have prayed that the respondent-company may be ordered to be wound up. The petition has been contested by the respondent. It is, inter alia , pleaded by it that the petitioner committed violation of the contract resulting in delay in the installation and commissioning of the plant. It is further pleaded that the respondent has provided employment to about 100 persons and it has gone into production. The hearing of the petition be adjourned for a period of two years and the respondent be allowed to pay the principal amount in installments. From the facts given above, it cannot be disputed that an amount of Rs. 14,48,740 was due fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the appropriate court. Otherwise also, the respondent has prayed for installments in the written statement which shows that it is not disclaiming its liability. It appears from the contention that the plea now sought to be raised is a frivolous plea and the same has been taken to delay the payment. It has been held in Madhusudan Gordhandas and Co. v. Madhu Woollen Industries P. Ltd., AIR 1971 SC 2600; [1972] 42 Comp. Cas. 125 (SC), that the principles on which the court acts are first that the defence of the company is in good faith and one of substance, secondly, the defence is likely to succeed on point of law and, thirdly, the company adduces prima facie proof of the facts on which the defence depends. In the present case, as al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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