Court Admits Winding-Up Petition, Appoints Official Liquidator

The court admitted the winding-up petition under Sections 433(e), (f), 434(1)(a), and 439 of the Companies Act, 1956, despite the respondent's defense of limitation regarding outstanding payments dating back to 2010-2011. The court appointed the Official Liquidator as the Provisional Liquidator to take over the respondent's assets, books, and records. Citations were ordered to be published, with the petitioner covering the costs. A four-week suspension was granted for the respondent to settle the debt, with the possibility of recalling the Liquidator appointment upon payment of the outstanding amount of &8377; 2,50,000.

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Issues: Petition under Sections 433(e), (f), 434(1)(a), and 439 of the Companies Act, 1956 seeking winding up of the respondent Company. Defense raised on the grounds of limitation. Admittance of the winding up petition based on the defense of the respondent.

Analysis:
1. The petitioner filed a petition seeking winding up of the respondent Company under Sections 433(e), (f), 434(1)(a), and 439 of the Companies Act, 1956, due to an outstanding amount of &8377; 2,50,000 remaining unpaid for the period from February 2010 to March 2011. The petitioner had published advertisements for the respondent's products in their publication, and despite partial payment, a significant sum was still outstanding.

2. The main defense raised by the respondent was the plea of limitation, arguing that the invoices in question dated back to 2010-2011, while the winding-up petition was filed in May 2016. The respondent contended that the claims were time-barred due to the lapse of time. Additionally, a similar defense on the grounds of limitation was raised by the respondent in another winding-up petition involving a sister concern of the respondent company.

3. The court admitted the winding-up petition, citing that the defense of the respondent regarding the limitation was not bona fide. The Official Liquidator was appointed as the Provisional Liquidator and directed to take over all assets, books of accounts, and records of the respondent-company. Citations were ordered to be published in newspapers and the Delhi Gazette, with the petitioner bearing the cost of publication.

4. In the interest of justice, the court suspended the order appointing the Official Liquidator as the Provisional Liquidator for four weeks to allow the respondent to pay its debts. If the necessary payment of &8377; 2,50,000 was made within the stipulated time, the order appointing the Official Liquidator would be recalled. The case was listed for further proceedings on a specific date.

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