2007 (8) TMI 800 - HC - Companies Law

Court admits Company Petitions due to non-payment, directs winding up & grants prayers.

The court admitted Company Petition No.1180 of 2002 due to the respondent company's failure to respond to demands for payment or oil, leading to the ... - Issues involved: Company's failure to supply oil as per agreement, failure to respond to demands for payment, invocation of Companies Act provisions for unpaid amount, winding up petition, admission of company petitions, direction for compliance with formalities, lack of response from respondent company, recommendation by BIFR, admission of petition by the court, direction to Official Liquidator, disposal of petitions.Judgment Summary:Company Petition No.1180 of 2002:The petitioners imported transformer oil from a US company, supplied a portion to another company for re-processing, but the latter failed to supply the balance as per the agreement. Despite demands for payment or oil, the respondent company did not respond. The petitioners invoked Sections 433 and 434 of the Companies Act, 1956 for the unpaid amount. The court, after considering the lack of response from the respondent company, admitted the petition and directed compliance with formalities, including advertising the petition. The respondent company's failure to dispute the demand led to the court's decision that the company should be wound up. The petitioners proved publication, and as there was no response from the respondent company, the court found the company liable to pay the due amount.Company Petition No.813 of 2003:This petition was related to a BIFR case against the respondent company. The court admitted this petition as well and directed the Official Liquidator to take necessary steps in accordance with the law. Despite the lack of response or affidavit from the Official Liquidator, the court, based on the circumstances and lack of response from the respondent company, granted the prayer clauses of the petition. Both petitions were disposed of accordingly.