Court Finds Winding-Up Petition Valid; Appoints Official Liquidator to Oversee Company Assets Amid Debt Acknowledgment.

The court admitted the winding-up petition, finding it maintainable as the petitioner complied with statutory notice requirements by sending notices to the registered office on record. The court dismissed the respondent's claim of a bona fide dispute, noting the respondent's acknowledgment of debt and lack of diligent pursuit of counterclaims. Consequently, the court directed the publication of the citation and appointed the Official Liquidator as the Provisional Liquidator to take control of the respondent company's assets and records. The case was scheduled for further hearing on 16th October 2003, with observations deemed prima facie.

---

---

Issues Involved:
1. Maintainability of the company petition due to non-service of statutory notice.
2. Existence of a bona fide dispute due to a counterclaim and pending summary suit.

Summary:

Issue 1: Maintainability of the Company Petition
The petitioner filed a company petition for winding up the respondent company on grounds of commercial insolvency and inability to pay debts. The respondent argued that the statutory notice u/s 433 of the Companies Act was not served as required by sections 433 and 434. The court found that the petitioner sent statutory notices to the respondent's registered office as per official records. The respondent changed its registered office address but informed the Registrar of Companies only after the notices were sent. The court held that the petitioner complied with the legal requirements by sending notices to the registered office address on record, making the proceedings maintainable.

Issue 2: Existence of a Bona Fide Dispute
The respondent claimed a counterclaim before the MRTP Commission and a pending summary suit, arguing that these constituted a bona fide dispute. The court noted that the respondent had confirmed the balance due on 17-3-2000 and 24-10-2001, and issued cheques that were dishonored. The MRTP complaint was not pursued diligently, and the compensation application was filed only after the winding-up notice. The court found no bona fide dispute as the respondent's actions appeared to be an afterthought to delay payment. The court was prima facie satisfied that the respondent was indebted and unable to pay its debts, justifying the admission of the winding-up petition.

Conclusion:
The court admitted the petition for hearing, directed publication of the citation, and appointed the Official Liquidator as the Provisional Liquidator to take over the respondent company's assets and records. The observations were made for the purpose of deciding the admission of the case and were prima facie in nature. The matter was renotified for 16th October 2003.

---