CONART ENGINEERS LTD. Vs. LAFFANS PETROCHEMICALS LTD

JUDGEMENT

(1.) IN this petition under sections 433 and 434 of the Companies Act, 1956 (hereinafter 'the Act'), petitioner -Conart Engineers Ltd. has prayed that the respondent -company, Laffans Petrochemicals Ltd. be wound up on the ground that the respondent has not paid the petitioner a sum of Rs. 92,866 together with interest thereon at the rate of 21 per cent per annum despite statutory notice dated 20th January, 1997.

(2.) THE facts leading to filing of the petition, as averred by the petitioner, are as under. The petitioner is a public limited company engaged in the business of construction of buildings and erection of plants, etc. The respondent is a company engaged in the business of manufacturing petrochemicals, like naphtha methyle. The registered office and factory of the respondent is at Panoli, Ankleshwar in Bharuch District. Under a contract dated 9th May, 1992, the respondent entrusted to the petitioner work of construction of Phase I and Phase II of the factory building at Panoli and the respondent was to pay to the petitioner the amount of their bills as per the certificates issued by the architect. Against the petitioner's bills for a total amount of Rs. 45,82,994, the respondent had already paid the petitioner a sum of Rs. 45,78,049 leaving a sum of Rs. 4,945. By its letter dated 15th June, 1994, the respondent awarded to the petitioner another construction work at Panoli factory at the price rise of 17.50 per cent over and above the rates of Phase I and II project, with other conditions remaining same. The petitioner completed the said construction work and submitted bills for Rs. 10,67,921 against which the company has paid a sum of Rs. 9,80,000 leaving a sum of Rs. 87,921. Thus, the total of the outstanding comes to Rs. 92,866. The said bills for Rs. 10,67,921 were also certified by the General Manager (Operations) of the company.

(3.) IN view of the failure on the part of the company to pay the aforesaid balance amount of Rs. 92,866, the petitioner served notice dated 20th January, 1997 under section 434 of the Act demanding the aforesaid amount with 24 per cent interest. Since the respondent neither gave any reply to the notice nor complied with the same, the petitioner has filed the present winding up petition.