ANAND STEEL Vs. BHARATH EARTH MOVERS LTD

JUDGEMENT

(1.) This Company petition under Section 433(e) of the Companies Act, 1956, is by M/s. Anand Steels, Bangrlore. It is a proprietory concern, that has moved this Court for a winding up order seeking the winding up of the respondent-Bharat Earth Movers Ltd., Bangalore.

(2.) The substance of the allegations in the petition is that on various dates commencing from 9/16-10 1985 to 1-12-1985 certain supplies of steel were effected in respect of which a sum of Rs.13,67,697/- was due and liable to be paid by the respondent-company. The same was not paid despite more than one notice issued. Petitioner was informed that goods worth about Rs.45,405/- was rejected by the respondent company. Therefore, the petitioner is seeking payment of Rs. 13,22,292/- together with interest at 18% per annum from 1-7-1986, upto the date of petition. It is in that circumstance, for non-payment of the cost of materials supplied the petition is filed, inter alia, contending that the respondent-company is unable to pay its debts and therefore it should be wound up.

(3.) Petition is resisted by the respondent-company. Detailed statement of objections has been filed. It is unnecessary to refer to the objections in detail. In paragraph-5, it is pointed out that the Chairman of the respondent- Company received a complaint from 108 employees alleging that certain employees were indulging in serious irregularities in the Stores Department. One employee of the Stores Department is specifically named to be in collusion with the suppliers in manipulating entries in the records of the Stores and Receiving Departments. It is pleaded that certain consignments which were actually paid for were not received at all. Payments were made on the basis of the forged records. In that circumstance, in para-21 of the statement of objections, the Company has asserted as follows : -