Court grants winding up petition due to non-payment, appoints Official Liquidator for respondent company.

The court allowed the petition for winding up the respondent company due to non-payment of dues as per agreements for advertising services. The respondent's failure to comply with demands under the Companies Act, 1956, and reluctance to engage in proceedings indicated an inability to meet debts. The Official Liquidator was appointed, with the petitioner bearing initial expenses and required to publish winding-up advertisements. This judgment highlights the legal ramifications of non-payment and statutory provisions for winding up in cases of insolvency or financial inability.

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Issues:
- Non-payment of dues by the respondent leading to a petition for winding up.

Analysis:
The judgment pertains to a case where the petitioner, engaged in displaying advertisements, entered into agreements with the respondent company for advertising services. The respondent failed to make payments as per the agreements, resulting in arrears amounting to significant sums. Despite the respondent's admission of the transactions, they raised objections regarding the dates and claimed inability to address the liabilities fully due to seizure of documents by tax authorities. The court noted the respondent's non-compliance with the demand under Section 434 of the Companies Act, 1956, and their reluctance to engage with the proceedings, indicating an inability to meet their debts.

The court, based on the findings, allowed the petition and ordered the winding up of the respondent company. The Official Liquidator was appointed as the liquidator, with the petitioner directed to bear initial expenses for the same. Additionally, the petitioner was instructed to publish advertisements of the winding-up order in specified newspapers and file a copy of the order with the Registrar of Companies within 30 days. The judgment underscores the legal consequences of non-payment of dues and the statutory provisions allowing for winding up in cases of insolvency or inability to meet financial obligations.

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