WINDSON INTERNATIONAL Vs. H.M. ELECTRICALS P. LTD.

JUDGEMENT

(1.) THIS application has been filed by M/s. Windson International, a proprietorship concern represented through its proprietor, Mrs. Chanda S. Khetawat under Section 433 read with Sections 434 and 439 of the Companies Act, 1956, with a prayer to pass an order for winding up of the opposite party -company -H.M. Electricals P. Ltd.

(2.) IT is the case of the petitioner that it carries on wholesale business of electrical insulating materials and spares of transformers as well as electrical fittings, etc. The petitioner, since 1997, has been supplying various kinds of electrical insulating materials required for manufacturing and repairing of electrical transformers, to the opposite party -company. On various dates, on the basis of purchase orders placed by the opposite party -company, the petitioner supplied/delivered different electrical fittings to the opposite party -company and raised bills for the same on the opposite party -company. The bills were received by the opposite party -company without raising any objection. The opposite party -company also issued "C" Forms to the petitioner under the Central Sales Tax Act. The petitioner has alleged that an amount of Rs. 46,03,313 is outstanding against the opposite party -company to be paid by the opposite party -company on account of supply of the goods as stated above and out of the same, the opposite party -company has paid an amount of Rs. 37,30,139.77 leaving a balance of Rs. 6,82,077 towards the price of the goods as on June 30, 2004. In a meeting held on June 30, 2004, between the managing director of the opposite party -company and the proprietor of the petitioner, the opposite party -company admitted that the aforesaid amount is owed by it and proposed a payment scheme, whereby the opposite party -company shall arrange and pay the petitioner a sum of Rs. 2,82,077 within July 15, 2004, so as to reduce the outstanding to Rs. 4 lakhs and the petitioner shall continue to supply the materials in accordance with the purchase orders placed by the opposite party -company, payments for which shall be " made within 60 (sixty) days of the despatch along with 10 per cent, payments extra against the old outstanding and the entire amount of outstanding, shall be adjusted within June 30, 2005.

(3.) THIS dispute, as it appears from the petition, continued for which the petitioner served a statutory notice as in annexure 10. A reply was sent to the same by the opposite party -company on May 5, 2005, intimating the advocate of the petitioner that some of the directors of the opposite party -company have tendered resignation, as a result of which, there is no board of directors, and, as such, the bank account of the opposite party -company is inoperative and reconstitution of the board of directors will take about 2 to 3 months. Thereafter, it appears that there were several correspondences made between the parties. But according to the petitioner an amount of Rs. 14,74,700.23 towards principal and Rs. 5,95,527 towards interest calculated at 21 per cent, per month as on March 31, 2005, is due on the opposite party -company, on the basis of which the petitioner has sought for an order for winding up of the opposite party -company.