9911796707
TMI Blog2002 (10) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... Estate, Thane. 3. The respondent is a company incorporated under the provisions of Companies Act. It has its registered office at No. 333A, Old Madras Road, Vijanapura, K.R. Puram, Bangalore. The nominal share capital of the company is Rs. 40,00,000 divided into 40,000 equity shares of Rs. 100 each. The issued, subscribed and paid up capital of the company is Rs. 19,08,000. Apart from others, the main objects of the company is to manufacture, buy, sell, import and export all types of capacitors, power saving devices, electronic instruments and equipments, etc. 4. It is the petitioner-company s case that the respondent-company is due to it a sum of Rs. 43,33,732.78 ps. in respect of certain items of goods supplied by it to the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. The primary grounds urged are, that there is no privity of contract between the parties that the films supplied were of sub-quality, with the result that the capacitors manufactured by the respondent- company were returned to it by its purchasers and lastly, the supplies made after cancellation of the supply order dated 26-2-1996, cannot give rise to any legal liability to pay the price thereof etc. 7. The defence offered had been considered by this Court while admitting the petition and permitting the petitioner-company to take out advertisement of the company petition, after prima facie coming to the conclusion that the defence pleaded by the respondent-company is frivolous, unsubstantial and lacking in good faith. In my view, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company submits that where the debt is disputed but that dispute raised is not in good faith and the defence offered is frivolous and the debtors have failed to pay their debts or which are unable to pay their debts, this Court could definitely exercise its discretionary jurisdiction under section 433( e ) of the Act, instead of relegating the creditor to approach the Civil Court. In support of his submission, the learned Counsel invites my attention to the observations made by Apex Court in the case of Harinagar Sugar Mills Co. Ltd. v. M.W. Pradhan AIR 1966 SC 1707. In the said decision, the Court has observed : "7. The relevant provisions of the Indian Companies Act also lead to the same position. Section 434 speaks of a creditor by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Vivek Textile Mills (P.) Ltd. 1982(1) KLJ 296 has observed : "The Court having jurisdiction under section 433 of Companies Act is not a Court essentially meant for settling money disputes between the parties. This jurisdiction is to subserve the object of winding up the companies which have not paid their debts or which are unable to pay their debts". 14. The factual background of the present case is that, on the request made by the respondent-company on one of its distributors, petitioner-company has supplied polypropylene films, which the respondent-company uses for manufacture of capacitors, which is its main business. An amount of Rs. 4,33,732.78 ps. appears to be due to the petitioner-company towards the value of goods supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a particular sum and therefore, there is a relationship of a creditor and debtor and such creditor can file a petition for winding up under section 439 of the Act and this is what the Apex Court has observed in Harinagar Sugar Mill s Co. Ltd. s case ( supra ). Therefore, the relief sought for by the petitioner-company requires to be granted. 17. Accordingly, the following : ORDER ( i )This company petition is allowed. ( ii )An order is made to wind up the respondent-company. ( iii )An Official Liquidator is appointed to take effective steps to implement the orders made by this Court. ( iv ) Petitioner-company is permitted to produce a copy of the orders made by this Court before the Registrar of Companies, within 30 d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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