KALPANA TRADING Vs. N C L INDUSTRIES LTD

JUDGEMENT

(1.) This is an application for winding up of M / s. N.C.L. Industries Ltd. (hereinafter referred to as the 'company') in terms of Sections 434 and 439 of the Companies Act, 1956 (in short, the 'Act'), on the ground that it is unable to pay its debts. Petition has been styled as 'creditors' application' in order to invoke powers under Sections 434 and 439 of the Act.

(2.) Section 434 of the Act envisages the situations in which a company shall be deemed to be unable to pay its debts. Section 433 enumerates the circumstances in which a Company would be wound up by the Court. One of the circumstances is if company is unable to pay its debts. In terms of Section 434 of the Act, a company shall be deemed to be unable to pay its debts if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding five hundred rupees then due, has served on the company, by causing it to be delivered at the registered office, by registered post or otherwise, a demand under his hand requiring the company to pay the sum so due and the company has for three weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor, Demand referred to in clause (a) of sub-section (1) of Section 434 shall be deemed to have been duly given under the hand of the creditor if it is signed by any agent or legal adviser duly authorised on his behalf, or in the case of a firm, if it is signed by any such agent or legal adviser or by any member of the firm. Petitioner's case is that notwithstanding several letters by registered post, the company has failed to pay the amount which according to it is due.

(3.) It is not necessary to deal with the question whether there has been any demand or inability of the company to pay its debts, in view of the fact that this Court has no jurisdiction to entertain the application. Section 10 of the Act deals with jurisdiction of Courts. The said provision reads as follows :