SARABHAI MACHINERY Vs. HARYANA DETERGENTS LTD

JUDGEMENT

(1.) BRIEFLY the. facts are that M/s. Delhi Cloth Mills filed the present petition under Sections 433, 434 and 439 of the Companies Act, 1956 (hereinafter referred to as "the Act"), for ordering winding up of the respondent. After hearing the parties, the petition was ordered to be advertised, vide order of this court dated October 20, 1983, under Rule 96 of the Rules. It was accordingly advertised by the then petitioner.

(2.) M/s. Sarabhai Machinery, the present petitioner, filed C. A. No. 74 of 1984 under Rules 101, 102 and 9 of the Companies (Court) Rules, 1959, in the main petition for substituting it as petitioner, in case M/s Delhi Cloth Mills abandoned the same. Subsequently, the respondent in view of the compromise arrived at between the parties, paid the amount to Delhi Cloth Mills and the latter agreed to get its petition dismissed. Consequently, M/s Sarabhai Machinery was allowed to be substituted as the petitioner, vide order dated May 24, 1984. Later, it was allowed to file the amended petition, vide order dated December 13, 1984, within a period of three weeks. In pursuance of that order, the petitioner filed the amended petition on January 10, 1985.

(3.) IT is averred in the petition that the petitioner installed a synthetic detergent plant for the respondent-company in pursuance of a contract dated March 19, 1975, and that an amount of Rs. 21,67,208-15 is due from the respondent. In addition, the petitioner is entitled to charge interest on the said amount at the rate of 18% per annum with effect from December I, 1979, till the date of realisation. In view of the arbitration clause in the agreement, the matter was referred to the arbitration of Mr. Ajit H. Mehta, Advocate, who gave the award dated June 27, 1983 (annexure P. 1), and held that the abovesaid amount was due to the petitioner from the respondent. The award was made a Rule of the court at the instance of the petitioner by the High Court of Delhi, vide judgment dated May 18, 1984 (annexure P. 1 ). The petitioner, it is further stated, incurred an expense of Rs. 19,000 in the arbitration proceedings and is entitled to recover it from the respondent.