1998 (2) TMI 513 - HC - Companies Law

Court grants winding up petition under Companies Act, 1956. Debts unpaid, company ordered to wind up. Official liquidator appointed.

The petition for winding up under sections 433 and 434 of the Companies Act, 1956 was allowed by the court. The respondent-company, Apex Cables P. Ltd., ... Winding up - Circumstances in which a company may be wound up Issues:Petition for winding up under sections 433 and 434 of the Companies Act, 1956 due to non-payment of debts by the respondent-company.Analysis:The petitioner, General Engineering Works, filed a petition seeking winding up of Apex Cables P. Ltd. for non-payment of dues amounting to Rs. 48,265.20, along with a dishonored cheque issued by the respondent-company towards part payment. The respondent-company failed to clear its liability despite statutory notices and court orders. The court, after due consideration of the facts, admitted the petition and ordered its publication in newspapers and gazettes. Despite the publication and service of notices, the respondent-company did not oppose the petition.Subsequently, the court examined the documents and the previous order dated 8-8-1997, which clearly indicated the respondent-company's intentional default and inability to pay its admitted debts. The court found no other option but to direct the winding up of the respondent-company. The official liquidator attached to the Court was appointed to take over the assets, statutory books, and records of the respondent-company immediately.In conclusion, the petition for winding up was allowed, and the respondent-company, Apex Cables P. Ltd., was ordered to be wound up in accordance with the law. The official liquidator was tasked with the responsibility of taking over the company's assets and records promptly.