Admitted debt and dishonoured cheques justified winding-up, while false affidavit material triggered criminal complaint proceedings.

An admitted balance confirmation and matching dishonoured cheques were treated as strong evidence of liability, and the company's inconsistent objections on rates, debit notes, security cheques and prior correspondence failed to rebut the presumption that the cheques were issued for consideration. On that basis, the winding-up petition was admitted for the admitted debt with interest and costs. The Court also found prima facie that the company's affidavit and supporting documents were false, inconsistent and possibly fabricated or forged, and directed criminal complaint proceedings for false evidence and fabrication of documents.

---

---

Issues: (i) Whether the company's admitted balance confirmation and dishonoured cheques established the petitioner's claim and justified admission of the winding-up petition; (ii) Whether the company's defence and supporting documents were fabricated so as to warrant perjury action against the deponent of the company's affidavit.

Issue (i): Whether the company's admitted balance confirmation and dishonoured cheques established the petitioner's claim and justified admission of the winding-up petition.

Analysis: The company had signed a balance confirmation acknowledging liability in a substantial sum, and the seven cheques issued thereafter matched that admitted amount. The alleged objections regarding rates, debit notes, prior correspondence and security cheques were found to be inconsistent with the contemporaneous conduct of the company and unsupported by credible proof of service or protest. The presumption that cheques are issued for consideration was not rebutted. On the materials, the defence was treated as a contrived and untenable attempt to resist a valid debt claim, attracting the statutory consequence under the company law regime governing inability to pay debts.

Conclusion: The issue was decided in favour of the petitioner, and the winding-up petition was admitted for the admitted debt with interest and costs.

Issue (ii): Whether the company's defence and supporting documents were fabricated so as to warrant perjury action against the deponent of the company's affidavit.

Analysis: The company's version depended on letters, debit notes and endorsements that were found to be inconsistent with admitted documents, implausible on timing, and not credibly proved to have been served or received. The Court held prima facie that false statements had been made on oath and that documents had been manufactured or forged for use in the proceedings. That conduct attracted the penal provisions governing false evidence and fabrication of false documents, and justified a complaint to the criminal forum.

Conclusion: The issue was decided against the company, and perjury proceedings were directed against the deponent of its affidavit.

Final Conclusion: The petition succeeded on the footing of an admitted debt unsupported by any credible defence, and the Court also took prima facie action on the false affidavit and fabricated documents by directing criminal complaint proceedings.

Ratio Decidendi: A company's admitted acknowledgment of liability, reinforced by dishonoured cheques, raises a strong presumption of debt that cannot be displaced by a belated, inconsistent, and unsubstantiated defence built on fabricated correspondence and documents.

---