Winding up notice requirements were not met where only Section 138 cheque dishonour notices were served.

A winding up petition was held not maintainable because the creditor had not served a valid statutory notice under Section 434 of the Companies Act, 1956. Notices issued only under Section 138 of the Negotiable Instruments Act did not satisfy the winding up notice requirement, as they did not give the company the requisite opportunity to pay before insolvency proceedings were initiated. A reservation of the right to pursue winding up did not cure the defect, and the notices were not composite notices in substance.

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Issues: Whether the winding up petition was maintainable in the absence of a valid statutory notice under Section 434 of the Companies Act, 1956, when the notices issued were under Section 138 of the Negotiable Instruments Act.

Analysis: The notices served on the respondent were expressly issued under Section 138 of the Negotiable Instruments Act and not as notices for winding up under the Companies Act. The statutory requirements for a winding up notice were not satisfied, including the requisite opportunity to pay before initiation of winding up proceedings. The reservation of a right to pursue winding up did not cure the defect, and the notices were not composite notices in substance.

Conclusion: The petition was not maintainable for want of a valid statutory notice under Section 434 of the Companies Act, 1956.

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