NATL TECHNOLOGIES LTD Vs. VIJAY INDUSTRIES

JUDGEMENT

(1.) This original side appeal is directed against the order dated 10-11-2004 passed by the learned Company Court in Company Petition No.32 of 2004.

(2.) The unsuccessful respondent is the appellant. The respondent herein filed the company petition under Sections 433(e) and (f) and 439 of the Companies Act, 1956 (for brevity 'the Act') read with Rule 95 of the Companies (Court) Rules, 1959 (for brevity 'the Rules') requesting the Court to wind up M/s. NATL Technologies Limited in accordance with the provisions of the Act. It is expedient here to refer the parties as they were originally arrayed so as to avoid confusion.

(3.) Briefly stated the case of the petitioner is thus:-The respondent is a public limited company with its registered office at Hyderabad. In the course of business, it approached the petitioner firm for supply of castor oil. As per the purchase orders placed by the respondent, the petitioner supplied castor oil time to time under various invoices. One of the conditions enjoined under the invoices was that the respondent is liable to pay at 2% interest per month on delayed payments. Thus, from 7-4-2000 to 1-8-2000 the petitioner supplied castor oil worth Rs.89,13,589/-. As per the trade practice, payments made shall be adjusted towards interest first and the balance, if any, shall be adjusted towards principal later. The respondent, as per the statement of account of the petitioner, became due to an amount of Rs.64,58,447/- and was liable to pay the said amount with interest at 2% per month. The petitioner got a legal notice dated 6-1-2003 issued to the respondent calling it upon to pay the said amount. Inter alia in the reply letter dated 10-1-2003 the respondent stated that the Income Tax Department served a notice under Section 226(3) of the Income Tax Act, 1961 calling upon it to pay the amounts due to the petitioner directly to the Department for adjustment of the Income Tax dues of the petitioner and, thus, an amount of Rs.5,34,868/- was paid accordingly to the Department and that earlier an amount of Rs.10 lakhs was paid to the petitioner and after adjusting the said amounts, an amount of Rs.27,40,882/- was payable.