Stamped power of attorney and admitted commercial debt supported admission of a winding up petition

An objection to a winding up petition based on an allegedly unstamped or insufficiently stamped power of attorney failed because the document bore an endorsed stamp-duty payment authenticated by official seal, and the presumption of regularity of official acts was not rebutted. The admitted commercial debt, supported by the charter party claim, demurrage, statutory notice and reply, was treated as established liability. On that basis, the petition was admitted and advertisement directions were issued, with interest noted at 12% simple interest from the date of statutory notice until payment.

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Issues: (i) Whether the respondent could resist the winding up application on the ground that the petitioner's power of attorney was unstamped or insufficiently stamped; (ii) Whether the admitted commercial debt justified admission of the winding up application.

Issue (i): Whether the respondent could resist the winding up application on the ground that the petitioner's power of attorney was unstamped or insufficiently stamped.

Analysis: The objection was based on the Indian Stamp Act, 1899. The document produced showed an endorsement of stamp duty payment, authenticated by official seal and emblem. The Court took judicial notice of the endorsement and applied the presumption of regularity of official acts. No material was produced to rebut that presumption.

Conclusion: The objection failed and the power of attorney was not found to be unstamped or deficiently stamped.

Issue (ii): Whether the admitted commercial debt justified admission of the winding up application.

Analysis: The underlying charter party claim, the agreed demurrage amount, the statutory notice, and the reply all showed that the liability was admitted. The Court held in a summary way that the company owed the outstanding sum and that the transaction was commercial, warranting interest at 12% per annum simple interest from the date of the statutory notice until payment.

Conclusion: The winding up application was admitted and directions for advertisement were issued.

Final Conclusion: The Court rejected the procedural objection, accepted the debt as established, and admitted the winding up petition on the basis of the respondent's admitted liability.

Ratio Decidendi: Where the authenticity of a stamped power of attorney is supported by official endorsement and unrebutted presumptions of regularity, and the debt is admitted, the Court may admit a winding up petition and grant consequential reliefs.

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