Court Orders Company Deposit, Stays Winding Up Petition

The court directed the company to deposit the due amount with the court, staying the winding up petition. If the deposit is made, the petitioner can file a suit; otherwise, the winding up petition will proceed. The court aimed to address doubts about the company's bona fides and provide a fair opportunity for resolution without immediate winding up, considering the disputed facts and the company's defense.

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Issues:
Claim of due payment under the Companies Act, 1956

Analysis:
The petitioner claimed a due amount of Rs. 1,16,67,100 along with interest from the company under Sections 433, 434, and 439 of the Companies Act, 1956. The petitioner contended that despite serving a statutory notice, the company failed to pay the outstanding debt, indicating its inability to pay its debts and warranting winding up.

Case of the Petitioner:
The petitioner was awarded a contract for supplying and installing furniture for a hotel by the company. The total contract sum was Rs. 4,04,67,847, out of which a balance of Rs. 1,02,11,720 remained unpaid by the company. The company issued two dishonored cheques, leading to a statutory notice. The company admitted the dues but failed to make the payment, justifying the winding up petition.

Case of the Company:
The company argued that the supply of furniture was delayed and defective, with missing parts. There were disputes regarding additional supplies and payments made. The company contended that after the dishonored cheques, it had paid Rs. 1,32,81,250 to the petitioner, raising substantial disputes and questioning the validity of the winding up petition.

Court's View:
The court noted disputed facts and a bona fide dispute raised by the company regarding the petitioner's claim. While the company's defense seemed inconsistent, the court emphasized that it is not a debt collection court. The court directed the company to deposit the due amount with the court, staying the winding up petition. If the deposit is made, the petitioner can file a suit; otherwise, the winding up petition will proceed. This approach aimed to address doubts about the company's bona fides and provide a fair opportunity for resolution without immediate winding up.

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