PARAMOUNT ENTERPRISES Vs. REECHEM PRIVATE LIMITED

JUDGEMENT

(1.) M/s. Paramount Enterprise, a proprietary firm, is the petitioner and M/s. Reechem Private Ltd. is the respondent company.

(2.) This company petition is filed under s. 439(1) of the Companies Act, 1956, for the winding up of the respondent-company on the ground that it is unable to pay the debt due to the petitioner-firm within the meaning of s. 433(e) read with s. 434(1)(a) of the Companies Act.

(3.) The relevant averment in the petition in brief are : The petitioner-firm carries on the business of manufacture and supply of fibre glass, fume exhaust system, and so on. The respondent-company, registered under the Indian Companies Act, 1913, placed an order on the petitioners by its purchase order dated 2/03/1979, for designing, fabrication, erection and commissioning of PVC/FRP/Fume Exhaust system for zinc chlorides as per the petitioners quotation dated 8/02/1979, fixing the cost at Rs. 32,500. The petitioners completed the said works and sent the invoices dated 14/04/1979, and 1/08/1979, for Rs. 25,036.25 and Rs. 1,738.75, respectively, and requested the respondent-company to take delivery of the same as they were lying in the petitioners factory. The delivery was to be against payment of the invoices. The respondent-company issued three cheques dated 6/07/1979, July 9, 1979, and 11/07/1979, each for sum of Rs. 3,000. When the said cheques were dishonoured, notice was given to the respondents and the respondents promised to pay case in lieu thereof and take delivery of the equipment. Since the respondent failed to make payment, the petitioners are entitled to interest at 18% per annum in accordance with the petitioners are entitled to interest at 18% per annum in accordance with the commercial practice for the delayed payment. The petitioners by their letter dated 8/02/1980, sent the statement of account and demanded payment by the respondents, of the principal sum together with interest accrued thereon amounting to Rs. 28,240.39, which the respondents failed to meet. However, the respondents are also liable to pay demurrage at Rs. 200 per month for not taking delivery of the equipment lying in the factory premises of the petitioner. Hence, the respondent is due to the factory premises of the of the petitioner in a sum of Rs. 34.412.25, of which Rs. 23,775 represent the cost of manufacturing, Rs. 7,037.25 represents interest at 18% per annum from the date of invoice till the date of filing of the company petition and Rs. 3,600 towards demurrage at the rate of Rs. 200 per month till the date of filing of the petition.