Insolvency disputes deemed non-arbitrable; Official Liquidator appointed as Provisional Liquidator.

The court dismissed the respondent's arguments, holding that disputes related to insolvency and winding up are non-arbitrable. The court admitted the petition, appointing the Official Liquidator as the Provisional Liquidator to take over assets and records of the respondent company.

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Issues:
1. Petition seeking winding up of respondent company under Companies Act, 1956.
2. Failure of respondent to pay debt leading to termination notice and issuance of winding up notice.
3. Respondent's defense based on arbitration agreement and application of Swedish law.
4. Court's analysis of insurance payment, arbitration clause, and application of Swedish law.
5. Decision on admission of petition and appointment of Provisional Liquidator.

Analysis:
1. The petitioner filed a petition under Companies Act, 1956 seeking winding up of the respondent company due to default in repayment of debt related to a contract. The respondent failed to pay instalments leading to termination notice and issuance of winding up notice citing unpaid dues.
2. Respondent's defense primarily relied on an arbitration agreement between the parties and the application of Swedish law, arguing that the winding up petition was not maintainable. The respondent failed to make payments despite rescheduling of instalments, leading to the present petition.
3. The court considered the respondent's arguments regarding insurance payment, arbitration clause, and application of Swedish law. The respondent claimed a dispute regarding dues due to insurance payment and invoked the arbitration clause based on the laws of Sweden.
4. The court dismissed the respondent's arguments, citing precedents that disputes related to insolvency and winding up are non-arbitrable. The court emphasized that claims for money against borrowers are not "right in rem" and cannot be arbitrated. The court also rejected the argument that Swedish law may bar the claim without specific details or evidence.
5. Consequently, the court admitted the petition, appointing the Official Liquidator as the Provisional Liquidator to take over assets and records of the respondent company. The court directed the publication of citations and instructed the Official Liquidator to safeguard assets and seek police assistance if necessary, setting the next hearing date.

This detailed analysis highlights the legal proceedings, the court's assessment of the respondent's defenses, and the ultimate decision to admit the winding up petition and appoint a Provisional Liquidator.

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