MALHOTRA STEEL SYNDICATE Vs. PUNJAB CHEMI-PLANTS LIMITED

JUDGEMENT

(1.) THE petitioner has filed this petition under Sections 433 and 439 of the Companies Act, 1956, for the winding up of the respondent company.

(2.) THE petitioner pleaded that in August, 1984, the respondent company, through its executive director, Shri S. S. Sandhu, placed an order for the supply of iron and steel C. R. Coils. . The same was supplied, vide bill No. 1806, dated August 7, 1984. On receipt of the goods, the respondent company issued a cheque No. 224994, dated August 7, 1984, for Rs, 1,20,000 drawn on Corporation Bank, Greater Kailash, New Delhi, towards part payment of the aforesaid bill. The cheque was presented but was returned with the remark "refer to drawer". The petitioner represented to the executive director that the cheque was not cleared. The executive director reassured the petitioner that the cheque would be cleared as and when presented and that he had advised the respondent company to make suitable arrangements for clearance of the cheque.

(3.) IT was further pleaded that Shri S. N. Malhotra, partner of the petitioner firm visited the Delhi office of the respondent company and the executive director informed him that the payments could not be made on account of financial difficulties, but assured him that the payment would be released shortly, and he even wrote a letter to the Chief Manager (Administration) of the respondent to release the payment.