RAM TUBE COMPANY Vs. JAY RAPID ROLLER LIMITED

JUDGEMENT

(1.) This winding -up petition has been filed on the allegation that the petitioner, who is engaged in the business of steel pipes, M.S. pipes and various other steel items, had been supplying these items to the respondent, who is engaged in the manufacture of rubberized and steel rollers consumed in the printing, textile and paper industries. In paragraph six of the petition it has been pleaded that "on account of the supply of the material, a current and running account was being maintained by the petitioner in respect of all the transactions had with the respondent -company". It is the petitioner's case that payments were to be made within thirty days failing which interest at the rate of 21 percent per annum would be chargeable. The Statement of Accounts has been filed as Annexure "A' showing an amount of Rs. 27,62,585.03 due and payable on account of principal amount of Rs. 31,01,934 / - towards interest, aggregating to Rs. 58,64,520 / - outstanding in favour of the petitioner and against the respondent as on 30.6.2000. It is averred that as a partial payment of its liabilities, the respondent had issued a cheque postdated to 12.7.2000, bearing No. 714205 in the sum of Rs. 25,00,000/ - and had promised to clear the remainder shortly after 20th July, 2000. When this cheque was presented for encashment it was dishonoured by the respondent's Bankers with the endorsement "payment stopped by Income -tax authorities". The statutory notice dated 21.7.2000, demanding payment of Rs. 58,64,5207 - alongwith future interest at the rate of 21 percent per annum was served on the respondent Company who neglected to send any reply and failed to elicit any response indicating the respondent's defence to the claims made therein. The petitioner has pleaded that the respondent has become commercially insolvent.

(2.) The defence to the winding -up petition is to be gathered from the following paragraphs of the petition.

(3.) On 11.2.2002 the following order was passed :