RAINBOW ENTERPRISES Vs. INDIA BREWERY AND DISTILLERY LTD.

JUDGEMENT

(1.) THE petitioner is seeking winding up of the respondent -company principal under section 433(e) of the Companies Act. 1956. A statutory notice was issued by the petitioner on October 28, 1991, to the effect that the petitioner -company has been supplying packing materials such as CC boxes, etc., for a long time and has also been receiving payments therefore; there were certain outstanding dues to be paid and a statement of account was prepared on December 31, 1990, and was sent to the respondent requesting it to make the payment immediately; the amount claimed therein was in a sum of Rs. 1,50,575.87; since there was no response to that letter, another letter was sent requesting to settle the accounts as on July 31, 1991, within two weeks; the amount claimed therein was Rs. 1,71,656.49, and barring some small amounts outstanding, the dues were not paid by the respondent. The statutory notice was issued as contemplated under section 433(e), read with section 434(1)(a) of the Act calling upon the respondent to make payment in a sum of Rs. 88,872.92, failing which action would be taken under the provisions of the Act.

(2.) THE respondent -company replied to the said notice stating that the goods supplied to them were of sub -standard quality and there were bona fide disputes between them thereto and denied the claim made by he petitioner. It is, thereafter, that the petitioner has presented this petition.

(3.) THIS court in Hegde and Golay Ltd. v. State Bank of India, : ILR1987KAR2673 , has explained the scope of a petition arising under section 433(e) of the Companies Act. It was stated therein that whenever a bona fide dispute arises between the parties in relation to a debt due on the basis of which the petition under section 433(e) is filed, the debt must be established and the liability is still due and their is no valid defence to the claim made by the petitioner.