MAXWORTH ORCHARDS (INDIA) LTD Vs. B. RAVI BABU

JUDGEMENT

(1.) This Reference is placed before us as the Hon'ble Mr. Justice Vinod Kumar Sharma differed from the view taken by Mr. Justice P. Jyothimani in a batch of Company Applications. He had framed the following questions for reference:

(2.) There existed a Company by name Maxworth Orchards (India) Limited. The business model of the Company was to buy land and to get customers to invest in its Plantations. The customers, in turn, used to be given a small piece of land and the Company undertook to maintain the land, by entering into separate Maintenance Agreement with them.

(3.) Towards that end, the Company entered into an Agreement for supply of Drip Irrigation System. The Supplier was one, M/s. EPC Industries Limited. The said Company raised a Bill for Rs.2,22,96,465.54 out of which a sum of Rs.1,70,93,353.60 had been paid that left out a balance of Rs.52,03,111.96. As the outstanding amount was not paid, a Statutory Notice was issued on 2/12/1997. By the time the notice was issued, the Company had closed its operation and therefore, a Winding up Petition came to be presented.