2016 (5) TMI 732

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....petitioner, for arranging various models for shooting, for the respondent's magazine, 'Wedding Wows' on five different dates. Petitioner raised invoices as hereunder:- Date of Shooting Date of Invoice Invoice Number Amount (In Rs.) 31st October, 2012 31st October, 2012 immpl/mum/2487 67416 2nd October, 2012 25th December, 2012 immpl/mum/2583 56180 17th January, 2013 17th January, 2012 immpl/mum/2653 50562 18th April, 2013 23rd April, 2013 immpl/mum/3047 56180 27th May, 2013 3rd June, 2013 immpl/mum/3117 56180 3. The respondent has issued cheques and the same were dishonoured for want of funds and the details are hereunder:- Date of Instrument Instru....

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....nd up. Perusal of the balance sheet does not indicate that the company deserves to be wound up for non-payment of lesser amount of Rs. 2,11,799/- allegedly due, from 27.05.2013 nor the respondent could be termed as commercially insolvent warranting appointment of a Provisional Liquidator under the provisions of the Companies Act, 1956. 8. In Pradeshiya Industrial & Investment Corporation of U.P., Vs. North India Petrochemicals Ltd., reported in 1994 (3) SCC 348, the Hon'ble Supreme Court held as follows: "An order under Section 433 (2) is discretional. There must be a debt due and the company must be unable to pay the same. The debt under this section must be a determined or a definite sum of money payable immediately or at ....

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....y commencing liquidation proceedings against a company and later dismissed when a proper defence is made out on substantial grounds. A creditor's winding up petition implies insolvency and is likely to damage the company's creditworthiness or its financial standing with its creditors or customers and even among the public. Public policy considerations 34. A creditor's winding up petition, in certain situations, implies insolvency or financial position with other creditors, banking institutions, customers and so on. Publication in the Newspaper of the filing of winding up petition may damage the creditworthiness or financial standing of the company and which may also have other economic and social ramifications.....