UNISYSTEMS P LTD Vs. STEPAN CHEMICAL LTD

JUDGEMENT

(1.) THIS judgment will also dispose of C. A. No. 23 of 1984 as the law point involved in both the appeals is the same.

(2.) COMPANY Application No. 19 of 1984 arises out of the order dated 20th July, 1984, of a learned company judge of this court whereby Company Petition No. 77 of 1983 under sections 433, 434 and 439 of the Companies Act, 1956 (hereinafter called "the Act"), moved by the appellants for winding up a firm, M/s Stepan Chemical Ltd. (hereinafter called "the respondent company "), was dismissed.

(3.) THE facts of Company Petition No. 77 of 1983 in brief are that the appellant supplied corrugated boxes of different sizes to the respondent company between January 18, 1979, to March 7, 1979. Towards the value of the goods supplied, it made payment to the tune of Rs. 92,000 but the balance amount of Rs. 12,900. 85 remained unpaid. The respondent company issued a cheque dated June 20, 1980, for Rs. 12,900. 85 in favour of the appellant but this cheque was not honoured by the bankers. The appellant alleges that the respondent company was liable to pay interest at the rate of 2% per month if the price of the goods represented by the invoice was not paid within the agreed credit period and on this account a sum of Rs. 14,926. 77 was due from it up to October 31, 1981. It is further alleged that the respondent company in spite of service of notice failed to make the payment of the balance principal amount as well as interest. As the respondent company was unable to pay its debts, the appellant filed the instant petition for its winding-up.