TaxTMI 
TaxTMI 
TaxTMI 
2023 (2) TMI 995
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.... said petition under Section 433(e) and 433(f) of the Companies Act, 1956 (hereafter 'the Companies Act') seeking winding up of the appellant company (respondent in the company petition). 3. It was the respondent's case, that it was interested in purchasing an aircraft and had accordingly entered into an arrangement with the appellant in this regard. In terms of the said arrangement, the respondent was required to pay 30% of the agreed consideration in advance. The balance 70% of the consideration was required to be paid four weeks before the date of delivery of the aircraft. 4. The aircraft was required to be purchased from an Austrian aircraft manufacturer named, Diamond Aircraft Industries GmbH. It was the respondent's case that it had....
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....when called upon to do so, and the amount paid was not refundable. 7. The learned counsel appearing for the appellant states that notwithstanding the said dispute, the appellant has deposited a sum of Rs.1,38,92,389/- (Rupees One Crore Thirty Eight Lacs Ninety Two Thousand Three Hundred Eighty Nine Only) with the Registry of this Court in compliance with the orders passed by this Court. He contends that the same clearly indicates that the respondent's allegation that the appellant is unable to pay the debt is erroneous. 8. At this stage, it would be briefly necessary to refer to the documents referred to by the learned Single Judge in the impugned order. It is observed in the impugned order that the Agreement between the parties is embodi....
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....behalf of the appellant. Prima facie, the arrangement mentioned in the said communication is between Centaur Mercantile Pvt. Ltd. and PCI Middle East FZE and not the appellant. 11. The appellant had sent a communication dated 04.11.2014, inter alia, stating that "Your new DA42 bearing MSN: 42, N165 is in the final stage of being manufactured and tested" and calling upon the respondent to pay the balance payment of EUR417,168 (Euro Four Hundred and Seventeen Thousand One Hundred and Sixty Eight Only) for an additional order of optional equipment. Although, the letterhead is of that of the appellant, the aforesaid communication is signed on behalf of PCI Middle East FZE. The said communication is signed on behalf of the respondent by its Dir....
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....rder to agree on the best way to solve the current situation. As agreed with Mr. Mehta from PCI (Chairman of the company in copy of this email), PCI will send back to you the down payment received from you last year in July 2014. A new contract for the airplane will be established directly between your company and Diamond Aircraft for this plane. Kindly send us the down payment once you receive the invoice from us. The remaining payment will be paid at delivery. This procedure was agreed between PCI and Diamond Aircraft in order to help you to receive your aircraft as soon as possible. Your aircraft has been already ready for delivery since end of January 2015. Soon we will send you an update on the validation of the 1,999 kg MTOM and....
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....y proceedings. A company is liable to be wound up under Section 433(e) of the Companies Act, 1956 if it is unable to pay the debt. In terms of Section 434 of the Companies Act, if a company fails to pay an admitted debt after receipt of the notice under the said Section, it would be deemed to be unable to pay the debt. We are unable to accept that in the given facts, the appellant has failed to repay an admitted debt. 19. Admittedly, only a sum of Rs.30,00,000/- (Rupees Thirty Lacs Only) was received by the appellant and the respondent had paid the remaining amount as claimed by it to PCI Middle East FZE. The learned Company Court had also noted that PCI Middle East FZE was a subsidiary of the appellant. Although, PCI Middle East FZE may b....