2012 (3) TMI 688 - HC - Companies Law

Court orders winding up of company under Companies Act, 1956 due to non-payment of dues.

The court admitted the Company Petition for winding up the respondent company under The Companies Act, 1956, due to non-payment of dues amounting to Rs. ... Inability to pay debts - winding up petition admitted - service of statutory notice refused - uncontroverted allegations - advertisement and publication requirement in winding up - deposit for publication chargesInability to pay debts - service of statutory notice refused - uncontroverted allegations - Whether the Respondent Company is unable to pay its debts and the petition should be admitted on that basis. - HELD THAT: - The Court accepted the Petitioner's averments that goods were supplied to the Respondent Company, invoices were raised and payments remained unpaid. Cheques issued by the Respondent Company were dishonoured and the statutory notice sent by the Petitioner was returned with the remark 'Refused'. The Respondent Company did not appear to contest the Petition and its allegations in reply were denied by the Petitioner. In view of the admitted facts and the failure of the Respondent Company to contest the claims, the allegations in the Company Petition remained uncontroverted and the Court was satisfied that the Company was unable to pay its debts.The Court held that the Respondent Company is unable to pay its debts and admitted the winding up petition.Winding up petition admitted - advertisement and publication requirement in winding up - deposit for publication charges - What consequential directions should follow admission of the winding up petition. - HELD THAT: - On admission of the petition the Court directed that the petition be made returnable on a specified date and ordered publication of the petition in two local newspapers and the Maharashtra Government Gazette. The Petitioner was directed to deposit a specified sum with the Prothonotary and Senior Master towards publication charges within three weeks, failing which the petition would be dismissed for non-prosecution. The Court also ordered that a copy of the order be forwarded to the Respondent Company at its registered office by the Petitioner's Advocate.The Court admitted the petition and issued directions for advertisement, deposit of publication charges and service of the order on the Respondent Company, subject to dismissal for non-prosecution if the deposit was not made.Final Conclusion: The Company Petition was admitted on the ground that the Respondent Company is unable to pay its debts; the petition was made returnable and the Court ordered publication in specified newspapers and the Government Gazette, a deposit for publication charges within three weeks failing which the petition would be dismissed for non-prosecution, and transmission of the order to the Respondent Company at its registered office. Issues involved: Winding up of a company u/s The Companies Act, 1956 due to non-payment of dues by the respondent company.Summary:The petitioner sought winding up of the respondent company, alleging non-payment for goods supplied. Despite reminders and dishonoured cheques, the respondent failed to pay. The petitioner issued notices, but the respondent alleged delays and short supply. After a statutory notice, the respondent refused to accept it. The petitioner filed a Company Petition, proving service on the respondent. An amount of Rs. 1,26,79,064 was due as of October 31, 2010. The respondent failed to pay, refused the statutory notice, and did not defend the petition. The court found the company unable to pay its debts and admitted the Company Petition, ordering its advertisement and depositing a publication charge. The order was to be forwarded to the respondent company's registered office.