GATI LTD. Vs. ATCOM TECHNOLOGIES LTD.

JUDGEMENT

(1.) The petitioner, Gati Limited ("Gati") seeks winding up of the respondent-company, Atcom Technologies Limited ("Atcom") under Sections 433 and 434 of the Companies Act, 1956, on the ground that Atcom has failed to pay a decretal debt obtained by Gati against Atcom in the principal sum of Rs.8,00,217/- plus further interest, aggregating to Rs.27,52,746.48.

(2.) On 5th November 1988, Atcom and Gati entered into a contract, under which Gati was required to transport Atcom's good to different destinations in India. The contract required payment to be made by Atcom within 15 days of Gati submitting its bills or invoices. There was also a contractual provision for interest at 2% per mensem on unpaid bills.

(3.) Gati claims that Atcom did not pay several of its bills. Gati filed a summary suit under Order XXXVII of the Code of Civil Procedure, 1908 against Atcom (Suit No.55 of 2000) in the court of the 1st Additional Chief Judge, City Civil Court, Secunderabad, for recovery of Rs.8,00,217/- and interest. Atcom contested the action. It sought leave to defend. This was granted, but Atcom did not file its written statement. The suit was thus decreed ex-parte in favour of Gati on 29th August 2002. Costs of Rs.25,824/- were also decreed in favour of Gati.