Court admits winding-up petition due to non-payment of goods supplied, company ordered to pay with interest.

The court admitted the winding-up petition under Sections 433, 434, and 439 of the Companies Act, 1956, due to the company's failure to pay the outstanding amount of &8377; 54,593.32 for goods supplied. Despite the company's claims of poor quality and rejection of goods, the court found their defense to be an afterthought to avoid payment. The court ordered the company to pay the principal amount with 12% interest from the filing date within a specified period, failing which the petitioner could proceed with winding up proceedings.

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Issues: Application under Sections 433, 434 and 439 of the Companies Act, 1956; Dispute over payment for goods supplied; Allegations of poor quality and rejection of goods; Admissibility of winding up petition for outstanding dues.

Analysis:
1. The petitioner filed an application under Sections 433, 434, and 439 of the Companies Act, 1956, claiming that the company had agreed to purchase goods and pay immediately, with interest for default. The petitioner supplied goods worth &8377; 5,37,158.92, of which &8377; 54,493.32 remained outstanding after part payments. The company contended that the goods were of poor quality and unsuitable, leading to rejection. The petitioner served a notice under Section 434 of the Companies Act, 1956, denying the rejection claims.

2. The petitioner argued that the company's defense was baseless, as there was no prior intimation of goods rejection. The petitioner sought winding up of the company due to its failure to pay the outstanding amount. The company, in its affidavit and during the hearing, maintained its stance on the poor quality of goods supplied, reiterating the rejection claim.

3. The company also questioned the authenticity of the bills raised by the petitioner, which formed the basis of the winding-up petition. However, the petitioner later disclosed copies of the bills, which the company denied receiving or authenticating. The petitioner detailed part payments made by the company, which the company did not dispute, establishing a partial payment of &8377; 4,82,565.60.

4. The court noted the inconsistency in the company's stance, as it had made part payments despite claiming rejection of goods. The court found the company's defense to be an afterthought to avoid payment, rather than a genuine claim of poor quality. Consequently, the court admitted the winding-up petition for the principal amount of &8377; 54,593.32, with 12% interest from the filing date. The company was given until a specified date to clear the dues; failure to do so would allow the petitioner to proceed with publication for winding up.

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