KALYANI SPG MILLS LTD Vs. SHIVA TRADING CO

JUDGEMENT

(1.) This is a winding up petition which was presented on the 30th March, 1976, and made returnable on the 10th of April, 1978. On the returnable date notice along with a copy of the petition was directed to be served on the company. Thereafter, the company appeared and obtained leave to file affidavit to show-cause way the winding up petition should not be admitted.

(2.) The petitioning creditor's claim arises out of a transaction by sale of diverse quantities of cotton to the company at agreed rates. The said contract between the parties were governed by the bye-laws of the East India Cotton Association Limited. It appears that disputes arose between the parties and under the arbitration clause of the contract, the same was referred to the arbitration of the East India Cotton Association Limited and an a ward, dated the 31st of August, 1977, was made in favour of the petitioning creditor by which the company was to pay a sum of Rs. 89,986.90 together with interest thereon at the rate of 15% per annum from 20th of June, 1976, till the date of payment and the costs of arbitration as awarded is Rs. 1,590. As the company did not pay the said sum awarded in' favour of the petitioning creditor by the Tribunal of Arbitration in spite of repeated requests and reminders, the petitioning creditors caused a, statutory notice to be served on the company through its advocate on record, Jalan & Company, dated the 24th of January, 1978. The company did not pay the amount and consequently the present winding-up petition has been filed.

(3.) The points involved in this application as to whether the winding-up petition can be said to be an abuse of the process of the court and for that purpose it is necessary to find out whether a winding up order can bs passed in this proceeding.