Deemed service in winding-up proceedings fails without proper proof of statutory notice service, leading to recall of ex parte orders.

A winding-up petition based on deemed inability to pay debts under section 434(1)(a) of the Companies Act, 1956 requires strict proof that the statutory notice was properly served and that the company failed to respond or pay. The Court held that the pleadings did not establish valid service by speed post or a factual foundation for the presumption of deemed service, and the cited authorities were distinguishable on their facts. Without proper pleading and proof of service, the deeming fiction could not be invoked. The ex parte interim orders and appointment of the Provisional Liquidator were recalled, and the company petition was dismissed.

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Issues: Whether the winding-up petition could proceed on the basis of deemed service of statutory notice under section 434(1)(a) of the Companies Act, 1956, and whether the ex parte interim orders and appointment of the Provisional Liquidator were liable to be recalled.

Analysis: The statutory scheme for winding up was treated as drastic and requiring strict compliance. The petition was founded on deemed inability to pay debts under section 434(1)(a), which depends on service of the winding-up notice and the company's failure to respond or pay. The Court found that the pleadings did not establish that the notice sent by speed post had been served or had remained unreturned in a manner permitting a presumption of service. The cited authorities on deemed service were distinguished on facts because the returned envelopes and pleadings in those cases supported the presumption, whereas that foundation was missing here. In the absence of a proper pleading and proof of service, the statutory deeming fiction could not be invoked.

Conclusion: The requirement of section 434(1)(a) of the Companies Act, 1956 was not satisfied. The ex parte orders were recalled, the respondent's application was allowed, and the company petition was dismissed.

Final Conclusion: Winding-up could not be sustained without proof of valid statutory notice service, and the proceedings founded on deemed inability to pay debts failed.

Ratio Decidendi: A winding-up petition based on deemed inability to pay debts under section 434(1)(a) of the Companies Act, 1956 cannot succeed unless service of the statutory notice is properly pleaded and established; absent such foundation, deemed service and the consequent presumption of inability to pay cannot be invoked.

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