MOHANLAL BADRILAL Vs. HOPE TEXTILES LTD

JUDGEMENT

(1.) THE decision rendered in this company petition shall also govern disposal of other connected company petition being Company Petition No. 1 of 1989.

(2.) IT is a company petition filed by what the petitioner calls themselves to be one of the creditor of the respondent-company. It is a petition essentially filed under Section 433 (e) of the Companies Act, 1956, seeking winding up of respondent company--known as Hope Textiles Limited, Indore. It is essentially founded on the allegations that petitioner had supplied certain material (cotton) to the respondent company' valuing Rs. 10,72,153. 10 paise between the period 24. 1. 1981 to 15. 11. 1981. It is averred that respondent company made part payment, but did not pay full, thereby leaving an outstanding of Rs. 2,02,573. 71 paise. It is averred that it is for recovery of this outstanding balance, the petitioner sent legal notice demanding the sum and since the respondent-company failed to pay the sum despite notice sent under Section 434, ibid. , this petition is filed seeking to wind up the company on the ground of its inability to pay the debt due within the meaning of Section 433 (e) of the Act.

(3.) IN substance, the reply of respondent company is based on the plea that the company is in the process of being declared as a 'sick company' under the provisions of SICA. It is further contended that the scheme of rehabilitation is under way and, in that process, the case of these petitioners along with other creditors whether secured or/and unsecured will be taken care of in accordance with the provisions of the Act. It is on this basis, the respondent company has contended that no case for winding, up of company is made out, or in any event, no orders for winding up need be passed when one competent statutory authority under the SICA has found contrary to it.