TaxTMI 
TaxTMI 
2009 (11) TMI 499
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.... despite E-mails Annexures-E series, Annexure-F and correspondence Annexures-G, H, J and K, issued a notice dated 17-7-2008 Annexure-P through legal counsel calling upon the respondent to pay Rs. 17,17,968 being the amounts due with interest calculated at the rate of 24 per cent per annum from the date of invoice. That notice when acknowledged was responded by a reply dated 18-8-2008 Annexure-Q, inter alia, contending that, due to the negligence in performance of the contract by the petitioner, the same was set right by the respondent by hiring data entry personnel and deploying software engineers, including transportation of materials and damages for loss of reputation, totally valued at Rs. 17,02,000 and called upon the petitioner to pay ....
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.... debt, which the respondent-company has failed to pay so as to invoke the extraordinary jurisdiction of this Court, for winding up the respondent-company ? 4. The respondent-company having entered into a time bound contract with Karnataka School Quality Assessment Organisation (KSQAO) undertook the job of electronic scanning of data from OMR Sheets by use of a scanner enabled to read the data and store it in an electronic format, in a computer. The petitioner claiming to have the necessary experience and expertise in the matter agreed to fulfil the said assignment. The petitioner claims to have completed the work entrusted from time to time as acknowledged by the respondent in its various letters and correspondence, followed by the invoi....
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....ance guarantee issued by the respondent the delay in the completion of the assignment, and the differences in the large amount of data processed, affecting the image of the respondent. In Annexure-H2, a reply to one of the E-mails, it was pointed out that the parties ought to work as a team to complete the project in time and to the satisfaction of the KSQAO. The respondent undoubtedly pointed out to certain editing errors of huge quantity of data for which an explanation was sought from the petitioner. The retrieving of balance data was also a subject-matter, as noticed in the reply E-mails. The respondent in its letter dated 3-10-2007, Annexure-K of the respondent by way of a reply to the claim for overdue and delayed payment in the lette....
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....he parties lies in the discharge of the petitioner's obligations in the assignment entrusted not to the satisfaction and specification of the respondent. This aspect of the matter is dealt with by the parties in their E-mails and correspondence and at paragraph 16(a) to ( h) of the statement of objections, clearly indicating error in data processing which required rectification by the respondent engaging and deploying data entry personnel and software engineers as also material. The material on record clearly indicates that the respondent had executed a performance guarantee, as time was the essence of the contract with KSQAO, and failure to perform occasioned loss of reputation to the respondent. 8. Having regard to the facts though the....