TECHNOFAB ENGINEERING LTD Vs. NUCHEM WEIR INDIA LTD

JUDGEMENT

(1.) M/s Technofab Engineering Limited (hereinafter referred to as the petitioner) has filed the present petition for winding up of M/s Nuchem Weir India Limited, formerly known as M/s Nuchem Weir Limited, (hereinafter referred to as the respondent company). This petition has been filed under Sections 433(e), 434 and 439 of the Companies Act, 1956 (hereinafter referred to as the Act) on the ground that the respondent company is unable to pay it's debt due. The petitioner company was awarded three contracts by the respondent for fabrication of Sewage Water Treatment Plant at a power station site in basin bridge. The total value of the three contracts was Rs.235/- lacs. These contracts were dated 12th March, 1998, 15th March, 1998 and 18th March, 1998.

(2.) It is the case of the petitioner that some extra work was also done. Learned counsel for the parties admitted that a meeting dated 3rd May, 1999 was held between the officers of the petitioner and the respondent company and it was agreed that in view of extra work done, the order value of the three contracts stood increased to Rs.245/- lacs from Rs.235/- lacs. The parties also agreed that Rs.206.77 lacs had already been paid by the respondent company to the petitioner as per the reconciled statement of accounts including adjustment of Rs.3,29,298/- as claimed by the respondent company. Deductions/debit notes of Rs.14,95,009/- issued by the respondent company were withdrawn. The petitioner agreed to make payment of Rs.7,00,000/- to a third party and thus it was considered that total payment of Rs.213.77 lacs had been made, leaving a balance of Rs.31,86,009.77, to be paid to the petitioner by the Respondent Company. The minutes of the said meeting are duly signed by the officers of the petitioner and the respondent company and are not denied.

(3.) The aforesaid minutes dated 3rd May, 1999 state that the payment schedule for releasing the aforesaid payment of Rs.31,86,009.77 would be discussed within one or two days.