Winding-up application admitted due to debt default under Companies Act. Court orders payment in installments.

The Calcutta High Court admitted a winding-up application against a company under Section 433(e) of the Companies Act, 1956, due to its inability to pay debts amounting to Rs. 1,74,65,867. The court rejected the company's defense of lack of knowledge regarding an account confirmation statement and its failure to respond to a statutory notice, leading to a presumption of admission of the debt. The company was directed to pay the outstanding amount in installments, emphasizing its failure to provide a genuine defense.

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Issues:
1. Application under Section 433(e) of the Companies Act, 1956 for winding up of a company on the ground of inability to pay debts.
2. Dispute regarding outstanding dues for coal supplied by the petitioner to the company.
3. Allegations of defective and short supply of coal by the company.
4. Company's defense based on alleged lack of knowledge of the officer issuing the account confirmation.
5. Failure of the company to reply to statutory notice under Section 434 of the Act of 1956.

Analysis:
1. The petitioner filed an application for winding up the company under Section 433(e) of the Companies Act, 1956, citing the company's inability to pay its debts. The petitioner supplied coal to the company between April 2013 and July 2015, for which outstanding dues of Rs. 1,74,65,867 were acknowledged by the company in an account confirmation statement. Despite the petitioner's requests, the company did not make the payment, leading to the winding-up application.

2. The company alleged defective and short supply of coal through various letters between February 2012 and May 2013. It claimed an entitlement of Rs. 2,86,00,000 along with interest due to production loss caused by delayed coal supply. However, the petitioner denied these allegations and reiterated its claim based on the account confirmation statement provided by the company.

3. The petitioner contended that the defense put forth by the company regarding the officer's lack of knowledge while issuing the account confirmation was unfounded. The company failed to demonstrate any error in the document or provide evidence of operational losses suffered due to delayed coal supply. The petitioner argued that the company's allegations were aimed at delaying payment rather than presenting a genuine defense.

4. The court found that the company's defense lacked merit as it had voluntarily issued the account confirmation without subsequent objections. The court also noted that the company's failure to reply to the statutory notice created a presumption of admission of the petitioner's claim, citing legal precedent to support this view.

5. Consequently, the court admitted the winding-up application against the company for the outstanding amount of Rs. 1,74,65,867 with interest. The company was directed to make payments in eight equal monthly installments, failing which the petitioner could advertise the application in newspapers. The judgment emphasized the company's failure to provide a bona fide defense, leading to the admission of the winding-up application.

This comprehensive analysis highlights the key legal arguments, defenses, and the court's reasoning in the judgment delivered by the Calcutta High Court.

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