SHUBHAM CONSTRUCTIONS Vs. MVD AUTOCOMPONENTS PVT LTD

JUDGEMENT

(1.) This is a petition filed by M/s Shubham Constructions hereinafter referred to as "the petitioner", under section 433(e) read with section 434 of the Companies Act, 1956 seeking winding up of M/s MVD Autocomponents Pvt. Ltd., hereinafter referred to as "the respondent".

(2.) The petitioner is a proprietary firm engaged in the business of construction. The respondent is a company incorporated under the Companies Act. It manufactures and exports auto electrical switches, sensors, plugs etc. for passenger cars, commercial vehicles, earthmoving machinery etc.

(3.) The respondent approached the petitioner to construct its factory premises. An agreement was entered into between the petitioner and the respondent on 22.11.2007 setting out the terms and conditions. Clause 9 of the agreement provided that the respondent shall pay a sum of '1.20 crores to the petitioner for the construction and that the bills as per approved quotation presented by the petitioner shall be cleared as per the schedule attached to the agreement. Clause 13 provided that the respondent can reduce or extend the covered area of the building, in which case the rate will be calculated at Rs. 700 per sq.ft for civil construction, Rs. 60 per sq.ft for electrical work and Rs. 75 for sanitary and plumb work. Another agreement was entered into between the petitioner and the respondent on 4.6.2008. The terms and conditions of this agreement were substantially the same as in the earlier agreement. However, clause 9 provided that the respondent shall pay a sum of Rs. 60 lakhs to the petitioner for the construction. Clause 13 provided that the respondent can reduce or extend the cover area of the building and in such a case the rate for the construction will be Rs. 450 per sq.ft for civil works, Rs. 35 per sq.ft for electrical work and Rs. 75 for sanitary and plumbing work.