KRISHNA CHEMICALS Vs. ORIENT PAPER AND INDUSTRIES LTD

JUDGEMENT

(1.) THESE two petitions filed under Sections 433, 434 and 439 of the Companies Act, 1956 though heard separately on two separate dates, are being disposed of by this common order as they have a common prayer for an order to wind up one and the same company, the Orient Paper and Industries Ltd. (for short, 'the Company') and raise common questions of law.

(2.) THE case of the petitioner in Comp. Act No. 25 of 1999 is that by purchase Orders dated 3.12.1997, 8.12.1997, 23.4.1998, 30.4.1998 and 3.10.1998 the Company asked the petitioner to supply Amotex (Defomer) Aronol (Wax emulson) and Pep size 500 for its business of manufacture and sale of pulp, paper, board and other articles. The purchase orders inter alia stipulated that payment will be made within 60 days/90 days sight through UCO Bank, Brajarajnagar and overdue interest payable at the rate of 16 percent per annum. In terms of the said purchase orders, the petitioner supplied the goods to the Company but the price of the goods amounting to Rs. 69,29,104/ as well as interest at the rate of 16 percent per annum totalling to Rs. 9,44,042.01 was not paid to the petitioner by the Company. By a registered notice dated 20.8.1999 served at the registered office of the Company at Brajarajnagar, Jharsuguda, the petitioner called upon the Company through his Advocate to make payment of Rs. 80,58,801.51 within three weeks, but the Company did not make the said payment. The petitioner has therefore filed this petition as a creditor for winding up of the Company by the Court under the provisions of the Companies Act, 1956.

(3.) DURING the pendency of the aforesaid two petitions for winding up of the Company, the outstanding principal amount has been paid by the Company to the two petitioners, but the interest amounts claimed by the petitioners in the two cases have not been paid as yet on the ground that the Company bona fide disputed its liability to pay interest to the two petitioners.