VANIVILAS CEMENTS PVT. LTD. Vs. MANJUNATH GRANITES

JUDGEMENT

(1.) THE Company has preferred this appeal against the order admitting the company petition filed under sections 433(e) and 434 of the Companies Act, 1956.

(2.) THE respondent claimed that the Company has borrowed a sum of Rs. 11,50,000/ - along with interest at 10% which works out to Rs. 3,73,000/ -. Therefore, the Company is due in a sum of Rs. 15,23,000/ -. In the audited balance sheets as on 31.3.2007, which are produced before this Court, it can be seen that the Company itself has stated that it has incurred losses for the aforesaid periods. Infact in the Company's balance -sheet, the aforesaid amounts are also reflected and therefore, the respondent issued statutory legal notice dated 8.9.2008 calling upon the Company to pay a sum of Rs. 15,23,000/ - which was duly served. The Company neither replied the said legal notice nor made payment. Therefore, the respondent was constrained to file the petition for winding up of the Company on the ground that the Company was unable to pay the amount.

(3.) THE learned counsel for the appellant assailing the impugned order contends that the Company to show its bona fides has deposited the entire amount in the Court. On that ground alone, the company petition is liable to be dismissed. He also contended that there is no liability on the part of the Company. The defenses raised by the appellant -Company are not considered by the learned Company Judge. The dispute is purely of civil nature. Intricacies are involved. Therefore, the parties are permitted to relegate to civil suit. The company petition cannot be converted into the proceedings for recovery of debt and therefore submits that the order of admission passed should be set -aside.