Dishonoured cheques and unrebutted statutory notice can establish indebtedness for winding-up relief where the company stays silent.

Dishonoured cheques, valid statutory notice, and the company's failure to respond were treated as sufficient to establish an undisputed debt for winding-up relief. The petitioner proved supply of goods, issuance and dishonour of nine cheques, and service of notice at the registered office under section 434(1)(a) of the Companies Act, 1956. Service through the Company Registrar at the registered address was treated as sufficient compliance with the Company Court Rules. On that basis, the company was found to be justly indebted, and the petition was made absolute in favour of the petitioner.

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Issues: Whether the company was liable to have the petition made absolute on account of the dishonoured cheques, service of statutory notice, and its failure to respond or contest the debt claim.

Analysis: The petitioner established supply of goods, issuance of nine cheques by the company, dishonour of those cheques, and service of statutory notice under section 434(1)(a) of the Companies Act, 1956 at the registered address of the company. The company did not appear or file any reply to the statutory notice or to the proceedings. The notice served through the Company Registrar at the registered office was treated as sufficient compliance with the Company Court Rules.

Conclusion: The company was found to be justly indebted to the petitioner, and the petition was made absolute in terms of the prayer clauses.

Final Conclusion: The proceedings culminated in a final order in favour of the petitioner on the basis of proved indebtedness and the company's failure to contest the claim.

Ratio Decidendi: Where dishonoured cheques, valid statutory notice, and non-response by the company establish an undisputed debt, the company may be treated as indebted for the purpose of granting winding-up relief.

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