Court grants winding-up petition against indebted company despite being struck off register

The court allowed the winding-up petition against the respondent company, which was found to be indebted, unable to discharge its debts, and commercially insolvent. Despite being struck off the register, the court clarified that it retains the power to issue a winding-up order. With no response from the respondent, the court granted the petition, appointing the Official Liquidator to handle the company's assets and properties promptly.

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Issues:
Winding up petition filed against a respondent company for non-payment of debts and commercial insolvency. Whether a company struck off the register can be wound up.

Analysis:
1. The petitioner filed a winding-up petition against the respondent company, Metro Mumbai Infradeveloper Pvt. Ltd., citing non-payment of debts and commercial insolvency. The petitioner was engaged in managing advertisements on BEST TV LED screens in Mumbai under an agreement with the respondent company. Despite several attempts by the petitioner to recover the outstanding amount, the respondent failed to make full payment, leading to the filing of the petition.

2. The respondent company issued multiple cheques towards part payment of the outstanding liability, but many were dishonoured. Despite assurances and promises of payment, the respondent failed to clear the dues, leading to the petitioner issuing a statutory notice as per the Companies Act, 1956. The respondent company did not respond to the statutory notice, further indicating its inability to pay the debts.

3. The court considered the issue of whether a company struck off the register could be wound up. The petitioner's counsel presented a public notice issued by the Registrar of Companies listing struck-off companies, including the respondent. The court examined relevant sections of the Companies Act, 2013, and the Companies Act, 1956, which empower the Registrar to strike off company names but do not bar the court from ordering winding up even if the company is struck off.

4. The court clarified that the striking off a company's name from the register does not prevent the court from issuing a winding-up order. The court highlighted provisions from both the Companies Act, 2013, and the Companies Act, 1956, emphasizing that the court retains the power to wind up a company even if its name has been struck off the register.

5. Considering the lack of response from the respondent company, the court found that the company was indebted to the petitioner, unable to discharge its debts, and commercially insolvent. With no opposition or reply from the respondent, the court relied on the statutory notice and the presumption of inability to pay to grant the winding-up petition.

6. Consequently, the court allowed the winding-up petition, ordering the winding up of the respondent company and appointing the Official Liquidator to take charge of the assets and properties of the company. The Official Liquidator was directed to act promptly without delay, and the company petition was disposed of accordingly.

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