THIRUKUMARA TRADING AGENCY Vs. SLEEK TEXTILES INDUSTRIES LTD.

JUDGEMENT

(1.) THE petition filed under Sections 433(e), (f) and 434(1)(b) read with Section 439(1)(b) of the Companies Act, 1956, praying for a direction to wind up the respondent, to appoint the official liquidator, High Court, Madras, to take charge of the assets of the respondent -company and for costs.

(2.) THE petitioner -company is a partnership firm and they have filed a petition to wind up the respondent -company and to appoint the official liquidator to take charge of the assets of the company as the respondent -company failed to pay the admitted sum of Rs. 1,02,460 towards past payment payable by the company for purchasing products from the petitioners.

(3.) THE respondent -company entered appearance through their Counsel and filed a counter affidavit. The case of the respondent is that they purchased peroxide and soda ash from the petitioner but the material supplied failed to adhere to the quality and specifications. Therefore, the respondent gave a debit note on February 17, 2002. After negotiation between the parties, it was agreed that the outstanding amount was only Rs. 64,630.30 and therefore it is not open to the petitioners to claim a sum of Rs. 1,02,460 that too with 24 per cent, interest. A preliminary objection was also raised by them in the counter by contending that the petitioners should have approached only the civil court and not a company court as there was a bona fide dispute with regard to the amount payable by the respondent. Hence, they prayed for dismissal of the company petition.