Company ordered to pay $82,467.90 with interest, ads for default. Security deposit dispute not for winding up.

The court directed the Company to pay the outstanding sum of US$ 82,467.90 within a specified timeline, along with interest. Advertisements for default were also ordered. The dispute over the security deposit was deemed unsuitable for resolution in the winding up application, allowing parties to pursue legal remedies.

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Issues:
1. Application filed for winding up under sections 433, 434, and 439 of the Companies Act, 1956.

Analysis:
1. The petitioning Creditor sought winding up of the Company due to default in payment of rent for Satellite services provided. The termination of the agreement was justified under clause 6.2, allowing forfeiture of the security deposit. The Company's contention of subpar service quality was not raised in response to the notice under section 434, and no counterclaim against the forfeiture was made. The court relied on precedents like Haryana Telecom Ltd. v. Sterlite Industries (India) Ltd. to support the petitioning Creditor's claim.

2. The Company argued against the winding up application, citing lack of admission in the reply to the statutory notice and the agreement's arbitration clause. The Company contended that disputes should be resolved as per the laws of Singapore and through arbitration, as per clauses 13 and 14 of the agreement, thus challenging the jurisdiction of the winding up Court.

3. The petitioning creditor clarified that the dispute was primarily about the security deposit's forfeiture and outstanding rental payments. Despite proposals for payment, the Company failed to remit the dues, triggering the forfeiture clause. Precedents like Madhusudan Gordhandas & Co. v. Madhu Woollen Industries (P.) Ltd. were cited to support the petitioning creditor's claim.

4. The court noted the agreement between the parties, the termination of the agreement by the petitioning creditor, and the subsequent dispute over the security deposit and outstanding payments. The Company was directed to pay the outstanding sum of US$ 82,467.90 within a specified timeline, along with interest. Advertisements for default were also ordered, and the dispute over the security deposit was deemed not suitable for resolution in the winding up application, allowing parties to pursue legal remedies.

This comprehensive analysis covers the key issues raised in the legal judgment, highlighting the arguments presented by both parties and the court's decision based on the relevant legal provisions and precedents cited.

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