JAGDAMBA POLYMERES LTD Vs. NEO-SACK LTD

JUDGEMENT

(1.) THIS is a company petition filed by petitioner under Section 433 (e) of the Companies Act, seeking winding up of the respondent company.

(2.) THE respondent is a company having its registered office at Dhar. It is engaged in the business of manufacture of tapes, fabrics, sack etc. in their Unit at Dhar. It is in the course of this day to day business activity, the petitioner claims to have done some job work as also sold certain goods to the respondents. It is the case of the petitioner that they having done some job work and supplied goods, had raised the bills on the respondent totalling Rs. 6,14,404 but respondent has not paid the same. Eventually on 3-9-1999, the petitioner sent legal notice under Section 433/434 of the Companies Act to the respondent calling upon them to pay the outstanding dues which according to petitioner had become payable, but dispute receipt of the notice, the respondent failed to pay the same and hence, petition is filed against the respondent for their winding up on the ground of their inability to pay the debt. The respondent on being served filed the return and denied their liability to repay the amount. Though while admitting the transaction, in question, the case of the respondent/company was as follows against the petitioner as pleaded in paras 4 and 5:-

(3.) THE respondent has thus, in substance denied the liability and has also denied that they have become insolvent or that they are unable to pay the alleged debt which according to them do not even fall within the meaning of the word "debt". It is further alleged that they having raised a bona fide dispute in relation to one isolated commercial transaction, the remedy of the petitioner lies in filing suit rather than to seek winding up of a running company.