SUDHIR PAPERS Vs. KIVISANSHO PACKAGING P. LTD.

JUDGEMENT

(1.) The present company petition has been filed under section 439 read with section 433(e) of the Companies Act, 1956, seeking the winding up of the respondent-company-Kivisansho Packaging P. Ltd., registered in the State of Karnataka, on account of alleged failure of the respondent-company to pay the alleged liability of Rs. 44,18,929 including interest at the rate of 24 per cent, per annum on the alleged nonpayment of the bills for supply of paper by the petitioner-company to the respondent-company in the course of business.

(2.) Learned counsel for the petitioner-company, Mr. Mallanagouda submitted that the respondent-company has failed to discharge its admitted liability and vide annexure E, the statement of account having been confirmed by the respondent-company showing the outstanding balance of Rs. 10,80,833 as on Nov. 16, 2010 and no response to the legal notice either by payment of the said liability to the petitioner-company or responding to the said notice by reply thereof, the company has failed to discharge its liability despite demand and therefore, the respondent-company deserves to be wound up in accordance with the provisions of section 433(e) of the Companies Act.

(3.) The respondent-company in paragraph 3 of its statement of objection has stated as under :