TaxTMI 
TaxTMI 
TaxTMI 
2008 (7) TMI 1133
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....r the disposal of this appeal are that the appellant company was incorporated on 1.11.1936 and its registered office is situated at Chandralok Complex, S.D. Road, Secunderabad and its administrative office is situated at 6-3-903/B/1, Somajiguda, Hyderabad - 500 082. It deals in manufacture and sale of cement. Whereas, the first respondent herein is engaged in the business of trading in different types of imported and indigenous coal and supplies coal to different parts in India. In the normal course of business allegedly, it has supplied different types of coal to the appellant company in terms of the purchase orders made by the appellant company from time to time. Ultimately, according to the respondent No. 1, as per the latest statement of accounts, the appellant company is liable to pay a sum of Rs. 7,95,907/- with interest at 16% per annum commencing from 19.11.2002. Thus, with interest component the total amount payable comes to Rs. 10,55,830/-. The second respondent herein is the sister concern of the first respondent engaged in the business of transportation of coal from ports to the customers of the first respondent. Accordingly, the second respondent stated to have rendere....
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....tended therein that the appellant had received the notice sent by the respondents to the address from which it was regularly corresponding and therefore there is no violation and further having regard to the admitted liability and seeking payment, the question of rejecting the application does not arise. 5. Initially after appearance of the appellant herein, the learned Single Judge, heard on the objection as to the maintainability of the very application for winding up for non compliance of issuance of notice to the registered office as contemplated under Section 434 of the Act and after hearing both the sides and after referring to said provision and other authorities including the decision of the Division Bench of this Court in Devi Travels (P) Ltd. v. Inter Globe Air Transport OSA No. 47 of 2001 Dated 24.10.06, the learned Single Judge over-ruled the said objection, on the ground that having regard to the fact that the notice was sent to the address with which the respondent was corresponding and therefore there is sufficient compliance in issuance of the notice as contemplated under the provisions of the Act and there is no violation, hence, the proceedings can be proceeded....
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.... 434: (1) A company shall be deemed to be unable to pay its debts - (a) if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding five hundred rupees then due, has served on the company, by causing it to be delivered at its registered office, by registered post or otherwise, a demand under his hand requiring the company to pay the sum so due and the company has for three weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor; (b) if execution or other process issued on a decree or order of any Court in favour of a creditor of the company is returned unsatisfied in whole or in part; or (c) if it is proved to the satisfaction of the Court that the company is unable to pay its debts, and, in determining whether a company is unable to pay its debts, the Court shall take into account the contingent and prospective liabilities of the company. (2) The demand referred to in Clause (a) of Sub-section (1) shall be deemed to have been duly given under the hand of the creditor if it is signed by any agent or legal adviser duly authorized on his behalf, or in the ....
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....vision Bench found that it is not sufficient compliance and ultimately allowed the appeal. This Court did not consider the present ambit. 12. On behalf of the appellant, reliance was sought to be placed on the judgment of the learned judge in Hyderabad Abrasives and Minerals Private Ltd. v. Andhra Cements Limited 2003 Company Cases (Vol.114) Page 250, where a learned Single Judge considering the said provision has held that a notice addressed to General Manager and certain secretarial office, is a valid service thereunder and went on to say, In so far as the other contention of learned Counsel for the respondent that the notice is not served at the registered office of the respondent company is concerned, it is belied by reference to the notice dated March 23, 1999 addressed by the managing director of the petitioner in C. P. No. 14 of 2002 which is issued on behalf of the other petitioners as well. The said notice is addressed to the general manager (accounts) of the respondent company at Dachepally. Even otherwise, I may hasten to add that having regard to the decision of this Court in Ramdas and Co. v. Kitti steels Ltd. 2001 (103) Company Cases 199, if the petitioner....