ARVIND INVESTMENT CONSULTANT Vs. PRESTO FINANCE LTD.

JUDGEMENT

(1.) WHETHER an appropriate case is made out for passing a winding up order of the respondent -company, Presto Finance Limited, under section 433 read with section 439 of the Companies Act, 1956, is the sole question which has come up for adjudication in this petition.

(2.) THE petitioner, Arvind Investment Consultant, is a proprietary firm of Smt. Rekha Arvindbhai Shah, who has filed this petition for an order of winding up of Presto Finance Limited. The petitioner is carrying on the business of investment. The respondent -company, Presto Finance Limited was incorporated under the provisions of the Companies Act, 1956, and its registered office is at Ahmedabad. The respondent -company was established for the following objects :

(3.) THE respondent -company did not issue any shares in favour of the petitioner till January 22, 1996. Obviously, therefore, there was no question of buying back the shares of the company by Mr. Vasa. The petitioner has also contended that the amount of Rs. 55,000 was utilised by the company and in due discharge of that liability, a cheque for Rs. 88,000 was issued by the company in favour of the petitioner. The said cheque on presentation came to bounce firstly on January 22, 1996, and, secondly, on January 30, 1996. On both the occasions, the cheque came to be returned on the ground of arrangement being exceeded. It is, therefore, the case of the petitioner that the company has failed to discharge its obligation as there was clear failure on the part of the respondent -company to discharge its financial liability.