Winding-up application admitted due to non-payment of dues; petitioner awarded interest and costs

The court admitted the winding-up application under Section 433(e) of the Companies Act, 1956 due to non-payment of dues amounting to Rs. 25,31,990.75. Interest at 6% per annum from December 2016 was awarded, with a directive for the petitioner to pay costs of Rs. 10,000. The company was given the opportunity to pay the outstanding amount and interest by a specified date to avoid winding up; otherwise, the petitioner could proceed with further legal actions. The judgment emphasized providing website copies of the order promptly and outlined consequences for non-compliance to ensure a fair resolution process.

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Issues: Application for winding up of the company under Section 433(e) of the Companies Act, 1956 due to non-payment of dues.

Detailed Analysis:
1. Non-Payment of Dues and Application for Winding Up: The petitioner filed an application under Section 433(e) of the Companies Act, 1956 for winding up the company due to non-payment of its dues amounting to Rs. 31,76,295.68. Despite being served with the petition and given opportunities, the company did not file an affidavit-in-opposition.

2. Contentions Regarding Notices Issued: The company argued that it is liable to pay Rs. 17,64,828 to the petitioner and is willing to pay in instalments, mentioning discrepancies in the amounts claimed in the notices issued under Section 434 of the Act of 1956. However, the petitioner clarified the errors in the first two notices and claimed the actual outstanding amount in the third notice dated September 3, 2016.

3. Admission of Dues and Interest Claim: The company had accepted bills from the petitioner without objection, admitted the obligation to pay Rs. 17,64,828.60, but failed to do so. The petitioner claimed interest at 18% per annum on the outstanding dues. Due to the company's failure to respond or file an affidavit-in-opposition, the court deemed the petitioner's claim for the principal sum of Rs. 25,31,990.75 as admitted.

4. Granting of Interest and Procedural Matters: The court, considering the facts, awarded interest at the rate of 6% per annum from December 20, 2016, on the unpaid bills. The court also addressed the procedural defect of filing the application through a notice of motion, stating that the defect is curable by directing the petitioner to pay costs of Rs. 10,000 to the State Legal Services Authority.

5. Decision on Winding Up Application: Subject to the payment of costs by the petitioner, the court admitted the winding-up application for Rs. 25,31,990, along with interest at 6% from December 2016. If the company pays the due amount and interest by a specified date, the winding up application will be permanently stayed; otherwise, the petitioner can cause advertisements in newspapers, setting a returnable date for the application before the court.

6. Final Directions: Urgent certified website copies of the order were to be provided to the parties upon compliance. The judgment provided a clear timeline for payment by the company and outlined the consequences of non-compliance, ensuring a fair opportunity for resolution before further legal actions.

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