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of <h1>Court grants winding-up petition against company for insolvency and unpaid debts.</h1> <h3>M/s. Mitsu Engineering Versus Jailaxmi Sugar Products (Nitali) Pvt. Ltd.</h3> The court allowed the winding-up petition against the respondent company due to unpaid debts and insolvency. The petitioner's claim of over Rs. 3.44 ... Winding up of Respondent company - company is unable to discharge its debts and is commercially insolvent - HELD THAT:-This Court while admitting the petition has clearly satisfied that respondent company is unable to pay its debts and the claim of petitioner is undisputed. It is also satisfied that there is a debt and the company is unable to discharge its debts, is commercially insolvent and requires to be wound up. The company be wound up by this Hon'ble Court in accordance with provisions of the Companies Act, 1956 - petition allowed. Issues:Winding up petition filed against respondent company for unpaid debts and insolvency.Analysis:The petitioner filed a winding-up petition against the respondent company, claiming an outstanding debt of Rs. 3,44,69,632.97, including interest. The petitioner alleged that the respondent company had approached them for the supply of materials, for which the petitioner invoiced a total of Rs. 2,21,81,246. The respondent company issued cheques amounting to Rs. 2.20 Crores, which were dishonored due to insufficient funds. A statutory notice was served on the respondent company, but it was returned unclaimed. The court found that the petitioner's claim was undisputed, and the respondent company was unable to pay its debts, leading to commercial insolvency.The court noted that despite proper service of the statutory notice and the company petition, the respondent company did not appear or file an affidavit-in-reply. Referring to previous court decisions, the judge concluded that the service of both notices was complete and valid. The court further emphasized the substantial amount due and payable by the respondent company, including the dishonored cheques, as evidence of the company's inability to pay its debts.The petitioner submitted an affidavit confirming the publication of the winding-up petition in newspapers and the Maharashtra Government Gazette. The court considered the pleadings, documents, and arguments presented by the petitioner's counsel. After finding that the respondent company was unable to discharge its debts and was commercially insolvent, the court allowed the winding-up petition. The court ordered the winding up of the respondent company in accordance with the Companies Act, 1956, and directed the Official Liquidator to take possession of the company's assets, books, records, and documents promptly. The Official Liquidator was instructed to act upon an authenticated copy of the court's order, and the company petition was disposed of accordingly.
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