Winding up for admitted unpaid debt upheld where statutory demand went unanswered and liability remained unrebutted.

An admitted and unrebutted debt, coupled with continued non-payment after statutory notice, justified winding up relief under the Companies Act, 1956. The company filed no reply and remained unrepresented, leaving the quantified liability from supply and reprocessing transactions undisputed. The Court also relied on BIFR material, including an opinion recommending winding up under the sick industrial companies regime. With the debt remaining due and payable and no rebuttal to the demand, the statutory conditions for winding up were satisfied, and the petition was allowed.

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Issues: Whether, on an uncontroverted and unpaid debt, the company petitions for winding up deserved to be allowed.

Analysis: The petitions were founded on a quantified liability arising from supply and reprocessing transactions, followed by statutory notice and continued non-payment. The company remained unrepresented and filed no reply disputing the demand. The Court also noted the material placed from BIFR, including the opinion recorded under Section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, recommending winding up. In the absence of any rebuttal and with the debt remaining due and payable, the requirements for invoking Sections 433 and 434 of the Companies Act, 1956 were satisfied.

Conclusion: The winding up relief was granted and the petition was allowed in terms of the prayer clauses.

Final Conclusion: The company was held liable on the admitted and unrebutted claim, and the winding up proceedings were directed to continue in accordance with law.

Ratio Decidendi: Where a company does not dispute a legally recoverable debt and fails to satisfy the statutory demand, winding up relief may be granted under Sections 433 and 434 of the Companies Act, 1956, especially where the record also supports action under the BIFR regime.

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