Petition for Winding Up Company Granted: Official Liquidator Appointed

The petition seeking winding up of the respondent company under Sections 433(E) and 434(1)(A) of the Companies Act, 1956 was admitted. The Official Liquidator was appointed as the Provisional Liquidator, tasked with taking over all assets, books of accounts, and records of the respondent company. Citations were to be published, and the petitioner was required to cover the publication costs and deposit a specified amount with the Official Liquidator. The Official Liquidator was instructed to prepare an inventory of assets, seal premises, and take necessary steps to protect assets. The case was scheduled for the next hearing on 20.04.2018.

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Issues:
Petition filed under Sections 433(E) and 434(1)(A) of the Companies Act, 1956 seeking winding up of the respondent company.

Analysis:
The petitioner alleged that the respondent company ordered goods but failed to pay the outstanding amount of Rs.62,14,189.04. The respondent company acknowledged in writing on 29.07.2015 that Rs.60,03,089.04 was due and payable as of 30.06.2015. Despite a statutory legal notice sent on 22.02.2016, the respondent company did not reply. The court noted the confirmation/acknowledgement dated 29.07.2015 as evidence of the respondent company's inability to pay its debts.

Decision:
The petition was admitted, and the Official Liquidator attached to the Court was appointed as the Provisional Liquidator. The Official Liquidator was directed to take over all assets, books of accounts, and records of the respondent company immediately. Citations were to be published in specified newspapers and the Delhi Gazette at least 14 days before the next hearing. The petitioner was required to bear the cost of publication and deposit Rs.75,000/- with the Official Liquidator within two weeks. The Official Liquidator was instructed to prepare an inventory of all assets, seal the premises where they are kept, and may seek the assistance of a valuer for asset valuation. Police help could be sought if necessary. Further steps to protect the respondent company's premises and assets were to be taken by the Official Liquidator. The case was listed for the next hearing on 20.04.2018.

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