BHATIA INTERNATIONAL LTD. Vs. ANDHRA CEMENTS LTD.

JUDGEMENT

(1.) THIS company petition is filed under Sections 433(f) and 439 of the Companies Act, 1956 (hereinafter referred to "the Act"), read with Rule 95 of the Companies (Court) Rules, 1959, seeking winding up of the respondent -company on the ground that the respondent -company failed to pay off its debts owed to the petitioner, in spite of receiving the statutory notice, and in view of the same, the respondent -company is deemed to become insolvent and is unable to pay off its debts.

(2.) IT is stated that the respondent -company was incorporated under the provisions of the Act on November 1, 1936. The authorised share capital of the respondent -company is Rs. 70 crores. The registered office of the company is situated at Chandralok Complex, S.D. Road, Secunderabad, and the administrative office of the respondent -company is located at 6 -3 -903/ B/1, Somajiguda, Hyderabad -500 082. The main objects of the respondent -company were to manufacture and sale of cement. It is stated that the first petitioner is a company engaged in the business of trading in different types of imported and indigenous coal and supplies coal to different sectors in India. As a normal business transaction, the first petitioner -company has supplied different types of coal in accordance with the purchase orders issued by the respondent -company from time to time. As per the latest statement of accounts, the respondent -company is liable to pay a sum of Rs. 7,95,907 and the said outstanding amount is payable with interest at the rate of 16 per cent. commencing from November 19, 2002 to December 3, 2004, amounting to Rs. 2,59,923 totalling to Rs. 10,55,830. There is no dispute with the respondent in regard to the quality of the material and the services rendered by the petitioners.

(3.) IT is stated that the first petitioner on its behalf and on behalf of the second petitioner sent several reminders to the respondent -company from August 30, 2001, till March 22, 2006 and requested the respondent -company to disburse the total outstanding amount due to the petitioners. The first petitioner -company by its letter dated June 3, 2003, indicated that they were co -operating with the respondent -company keeping in view of the business terms and were accepting the request of the respondent -company to extend the time period for repayment of their outstanding bills. It is also stated that the respondent -company by its letters dated October 30, 2001, January 9, 2002, January 27, 2002, March 23, 2002, December 18, 2002, March 27, 2003 and June 4, 2003, has admitted that it owes an amount of Rs. 12 lakhs and requested time to make the payment, as it was going through serious financial crisis. It is stated that the respondent -company by its letter dated June 26, 2006, has admitted the old dues to the extent of Rs. 12 lakhs and agreed to send post -dated cheques, if the first petitioner -company commences the supply of washed coal to them. The respondent also informed that they have certain commitments to financial institutions and payment of sales tax arrears, and as such unable to make payment to the petitioners herein. In spite of repeated assurances as per various letters referred to above, the respondent -company was unable to fulfil their demand of outstanding dues to the petitioners. Therefore, a statutory notice under Section 434 of the Act was issued calling upon the respondent to make payment of the total outstanding amount with interest; failing which appropriate action would be initiated. Though the said notice was received by the respondent -company, but the respondent did not give any reply or clear the amounts due. Hence, the present company petition.