Court grants petition to wind up company for insolvency under Companies Act. Official Liquidator appointed for assets liquidation.

The Court granted the petition for winding up the respondent-Company under Sections 433 and 434 of the Companies Act, 1956. The Court found the respondent-Company to be commercially insolvent based on the outstanding loan amount and failure to repay despite acknowledging the debt. The Official Liquidator was appointed as the Liquidator to take charge of the company's assets and initiate the winding-up process as per the Companies Act, with a report due within three months.

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Issues:
Petition for winding up under Sections 433 and 434 of the Companies Act, 1956 based on outstanding loan amount and insolvency of the respondent-Company.

Analysis:
1. The petitioner filed a petition seeking winding up of the respondent-Company under Sections 433 and 434 of the Companies Act, 1956 due to non-payment of a loan amount of Rs.5,00,000 along with interest. The respondent-Company acknowledged the debt but failed to make any payments despite repeated reminders and a statutory notice.

2. The petitioner contended that the respondent-Company's inability to pay its debts, as evidenced by the outstanding amount and lack of response to the statutory notice, indicated commercial insolvency. The Court admitted the petition after observing the facts and circumstances, allowing the petitioner to issue an advertisement regarding the admission of the petition.

3. Subsequently, the Court appointed the Official Liquidator as the provisional liquidator to take charge of the company's assets and prepare an inventory. The petitioner published an advertisement specifying the final hearing date, and no other creditor came forward in response to the advertisement.

4. Both parties agreed that the respondent-Company was not a going concern and was unable to pay its debts. The Court noted the petitioner's loan, the respondent-Company's failure to repay, and the appointment of the Official Liquidator as the Provisional Liquidator.

5. Considering the respondent-Company's financial position and commercial insolvency, the Court ordered the winding up of the respondent-Company, appointing the Official Liquidator as the Liquidator to take possession of all assets and accounts. The Official Liquidator was directed to initiate the winding-up process as per the Companies Act, with a requirement to submit a report within three months. The petition for winding up was allowed accordingly.

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