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TMI Blog2008 (7) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... mean that it was not able to discharge its liability to the appellant. It is well-settled proposition of law that the winding up petition at the instance of the creditor cannot be a device to pressurize the debtor to make the payment. In the instant case, it can be well stated that though it ostensibly looks like a winding up proceeding, it is nothing but a device invented by the appellant in order to pressurize the respondent to make the payment. Under the circumstances, the learned single judge was perfectly correct in rejecting the petition both factually and legally. Hence, this appeal stands dismissed - O.S. A. NO. 18 OF 2002 - - - Dated:- 1-7-2008 - M. CHOCKALINGAM AND R. SUBBIAH, JJ. V. Narayanaswami for the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence, it has got to be wound up. The petition was countered by the respondent stating that the allegations found therein, are false; that it is not correct to state that there was a balance of Rs. 10,24,252.80 ; that it is true that there was a supply of cotton; but, the cotton supplied was of substandard quality; that it is also a disputed fact; that apart from that, there was no demand made ; that there was no service of notice at all; that further, there was no financial crisis at all as put forth; that issues have got to be framed and decision has got to be taken on that; that what is the actual liability has got to be decided ; that it was a device invented by the appellant in order to pressurize the respondent-company to make t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d quality, cannot be countenanced, since it was never raised in any of the communications made by the respondent; that under the circumstances, there was a definite liability; that the respondent was unable to pay, and hence, the order of the learned single judge has got to be set aside and winding up be ordered. The court paid its anxious consideration on the submissions made and also looked into the materials available. After doing so, this court is of the considered opinion that the order of the learned single judge has got to be sustained for more reasons than one. The company petition was filed under section 433( e ) of the Companies Act, 1956, which would require that there must be a liability, and it must be definite, and also th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , was placed before the court, at the time when the matter was taken up for enquiry, and the balance-sheet as on March 31, 1999, would show that the respondent had fixed the assets to the tune of Rs. 268.64 lakhs and also the current assets at Rs. 198.90, and the liabilities were shown as Rs. 220.60 lakhs. Further, it is true that the respondent-company, as per the balance-sheet, incurred certain loss ; but, the same did not mean that it was not able to discharge its liability to the appellant. It is well-settled proposition of law that the winding up petition at the instance of the creditor cannot be a device to pressurize the debtor to make the payment. In the instant case, it can be well stated that though it ostensibly looks like a wind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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