Court allows withdrawal of deposited amount in winding-up petition due to genuine dispute

M/s. Union Roadways Limited Versus M/s. Prasad Multi Services Pvt. Ltd.

M/s. Union Roadways Limited Versus M/s. Prasad Multi Services Pvt. Ltd. - TMI Issues:
Petition seeking winding up of a company under Sections 433 & 434 of the Companies Act, 1956 due to unpaid debt of Rs. 9,29,500 since 2015. Dispute arising over the outstanding dues payment. Respondent's contention based on Chartered Accountant's verification. Petitioner's claim for the full outstanding amount.

Analysis:
The petitioner filed a petition under Sections 433 & 434 of the Companies Act, 1956 seeking winding up of the respondent company due to unpaid debt of Rs. 9,29,500 since 2015. During the proceedings, the respondent initially expressed willingness to pay the outstanding dues in installments but later disputed the amount. The respondent deposited Rs. 6,33,500 with the Court, claiming it to be the admitted amount due. The respondent's Chartered Accountant contested the remaining amount based on invoice verification, leading to a dispute over the total outstanding sum. The petitioner argued that the respondent's change in stance from willingness to pay the full amount to disputing it through the Chartered Accountant's report warranted further legal action for winding up.

The petitioner contended that the respondent's reliance on the Chartered Accountant's report to backtrack from the commitment made in court to pay the full dues justified proceeding with the winding-up petition. The respondent, on the other hand, maintained that the dispute over the remaining amount was genuine, supported by the Chartered Accountant's verification. The Court noted that while the respondent had initially agreed to pay in installments, the subsequent dispute raised by the Chartered Accountant necessitated a reevaluation of the situation.

After considering the submissions, the Court found that the respondent had deposited the admitted amount of Rs. 6,33,500 with the Court. The respondent's Chartered Accountant had conducted a thorough review of the invoices, highlighting discrepancies and contesting the remaining sum. Given the genuine dispute over the outstanding amount, the Court decided not to proceed with the winding-up petition. Instead, the petitioner was allowed to withdraw the deposited amount of Rs. 6,33,500 with interest, if any accrued. The petitioner was granted liberty to pursue alternative legal remedies, such as filing a civil suit, for the disputed amount. The rights and contentions of both parties regarding the disputed sum were left open, and any interim relief was vacated.