JAMNA AUTO INDUSTRIES LTD Vs. MODERN STEEL LTD

JUDGEMENT

(1.) The appellant has filed this company appeal under section 483 of the Companies Act, 1956 , for setting aside the order dated March 24, 2000, passed by the learned judge in Company Petition No. 296 of 1998.

(2.) Modern Steel Ltd., manufacturers of iron and steel billets/ingots and rolled products, filed a petition under section 433 read with section 434 of the Act seeking winding up of the appellant-company on the averments that Jamna Auto Industries Ltd., had purchased material from it and a sum of Rs. 27,30,353 became due. Since the amount was not paid, therefore, interest at the rate of 18 per cent. per annum was levied on the outstanding amount.

(3.) The appellant's case is that there was no contract between the parties for payment of interest and in the absence of any contract, the appellant is not liable to pay it. Thus, the company court has erred in entertaining the petition for winding up of the appellant-company when there is a bona fide dispute between the parties as to the payment of interest.