Court orders winding up of respondent-company for non-payment of dues. Official Liquidator to take charge of assets. The court granted the petition for winding up the respondent-company under section 433(e) and (f) of the Companies Act due to non-payment of dues despite ...
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Court orders winding up of respondent-company for non-payment of dues. Official Liquidator to take charge of assets.
The court granted the petition for winding up the respondent-company under section 433(e) and (f) of the Companies Act due to non-payment of dues despite admission by the respondent. The court found the respondent's admission of owing money to multiple creditors, including the petitioner, and its inability to settle debts as grounds for winding up. The Official Liquidator was directed to take charge of assets, and the petitioner was instructed to deposit provisional costs. The court ordered the publication of the winding-up petition in designated newspapers and filing of the order with the Registrar of Companies within a specified period.
Issues: Petition for winding up under section 433(e) and (f) of the Companies Act based on non-payment of dues despite admission by the respondent.
Analysis: The petitioner filed a petition seeking the winding up of the respondent-company under section 433(e) and (f) of the Companies Act due to non-payment of dues. The petitioner had previously entered into a mutual understanding with the respondent regarding the payment of a balance amount of Rs. 4,75,000, which was due as of a specific date. Despite this understanding, the respondent failed to pay the amount, and as of the date of the statutory notice, the respondent owed Rs. 2,25,000 along with interest to the petitioner. The respondent, in its objection statement, admitted the understanding reached in a previous proceeding and also admitted the balance amount due to the petitioner. The court, after considering the admission made by the respondent and the failure to pay despite the admission, admitted the petition for winding up and directed advertisement. The respondent did not pay the amount due nor provide any additional material to counter the petition.
Furthermore, the respondent admitted in its objection statement that it owed money to several creditors and was unable to settle with all of them, including the petitioner. This admission indicated the respondent's inability to pay its debts, making it liable to be wound up. Consequently, the court allowed the petition, ordered the winding up of the respondent-company, and directed the Official Liquidator to take charge of the assets and proceed further as per the law. The petitioner was instructed to deposit provisional costs with the Official Liquidator, and the advertisement of the petition was to be published in specified newspapers. Additionally, a copy of the order was to be filed with the Registrar of Companies within a specified timeframe.
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