TRAVELS AND RENTALS Vs. NETWORK LIMITED

JUDGEMENT

(1.) Winding up of M/s Network Limited has been sought by M/s Travels and Rentals, inter alia, on the ground that the respondent company is indebted to the petitioner for a sum of Rs.1,13,289.16 paise being the cost of the air tickets sold and delivered to the respondent by the petitioner. Beside this amount the petitioner has also claimed interest at the rate of 24% p.a. from 1st January,1997.

(2.) Briefly stated the facts of the case are that the respondent company appointed the petitioner as its official travel agency vide letter dated 22nd March,1995. Utilisation of the petitioner as travel agency was as per the terms and conditions contained in the said letter. Two accounts were to be maintained by the petitioner; one in the name of M/s Network Limited and another in the name of M/s Network Medical. This was done at the behest of the respondent company. According to petitioner air-tickets were purchased by respondent of various air-lines between May,1995 to November,1995. Bills were accordingly raised on diverse dates in respect of air-tickets so purchased by the respondent. Respondent Company had been making payments from time to time against various bills raised against M/s Network Limited as well as its unit M/s Network Medical. Adjustment of those payments were given. Some of the bills still remain to be paid. The payment of these bills till date have not been made by the company thereby leaving balance of Rs.1,13,289.16 paise. When this debt was not cleared by the respondent company and committed a default, the petitioner served statutory notice dated 2nd April,1996 on the Company. This was replied by the company. Respondent denied its liability. Company, however, admitted that a sum of Rs.75,143.00 was due and payable against outstanding bills of M/s Network Medical. It assured that the said amount would be paid to the petitioner. Papers had already been sent for approval to the Head Office. With regard to other outstanding bills of M/s Network Limited, it took the stand that the amount of Rs.19,082.00 had been paid in full and final settlement. Petitioner denied these assertions of the Company. Therefore, when the outstanding dues were not paid the present petition was preferred.

(3.) The respondent company in its reply has taken various defences based on legal submissions as well as on merits. According to respondent petition is not maintainable as it is based on running account. Secondly M/s Network Medical and M/s Network Limited are two distinct entities. Claim against Network Medical is not maintainable as the same is not a company registered under Companies Act. Once petitioner admits that he maintained two separate accounts of these two separate entities and the statutory notice having been served only on M/s Network Limited no claim against M/s Network Medical can be preferred in these proceedings. Moreover, the payment made by the respondent company have not been correctly reflected in the accounts of the petitioner. There exist bonafide dispute with regard to the amounts due and payable. Finally statutory notice having not been served at the registered office of the company, hence the petition is not maintainable.