SARMON PVT LTD Vs. SIDHA SYNTEX LTD

JUDGEMENT

(1.) These petitions have been filed by creditors under Sections 439(1)(b) 433 and 434, Cornpanies Act, 1956 (hereinafter to be called the Act). The facts of the first two cornpany petitions are sarne. They may be surnrnarised thus.

(2.) The respondent Cornpany M/s. Sidha Syntex Limited, Udaipur was incorporated as a lirnited liability cornpany under the Act with its registered office at Rickhabdeo (Udaipur). An agreernent was executed in between the petitioner Cornpany and the respondent Cornpany on Novernber 8, 1984. In pursuance there of, the petitioner Cornpany supplied 3500 Kgrns. Polyster Staple Fibre on Novernber 29, 1984 against invoice NoA07184 for U.S. $ 52,500/- to there respondent Cornpany. Payrnent was to be made within 60 days through Allahabad Bank, Parliament Street New Delhi. The respondent Cornpany received the said goods but did not rnake payrnent of the bill to the petitioner Cornpany. Letters stated March 9, 1985 (Annexure 5), dated March 28, 1985 (Annexure 6), dated April 9, 1985 (Annexure 7) and dated May 29,1985 (Annexure 8) were sent to the respondent Cornpany. In its reply dated June 13, 1985, the respondent Cornpany stated that payrnent would be made within a rnonth. It was also assured on telephone on July 15, 1985. Telex rnessage Annexure 11 was also received to this effect. On Septernber 6, 1985, detailed letter Annexure 12 was written by the petitioner cornpany to the respondent Cornpany for rnaking payrnent. On October 22, 1985 the Managing Director of the petitioner Cornpany rnet the Managing Director of the respondent Cornpany and requested for the payrnent of the outstanding dues. In pursuance of the decision taken in this meeting, the respondent Company issued letter Annexure 13 to the petitioner Company confirming the aforesaid supply. Even thereafter several letters and telex messages were sent to the respondent Company to pay the said amount but with no avail. On October 4, 1990- notice (Annexure 16) was sent under Section 34 of the Act by the petitioner company to the respondent Company through registered A.D. post There is no reasonable and bona fide dispute regarding the payment of the said amount The respondent Company is unable to pay its debts. Its factory is lying closed since February, 1986. It is no longer in a position to function and conduct its business with profit. It is just and equitable to wind it up.

(3.) The third petition has been filed by Jambo Prasad Jam in his personal capacity and also as karta of his Hindu undivided family. It has been averred in it that Rs. 1,05,000.00 in his personal capacity and Rs. 25,000.00 karta of his Hindu undivided family were deposited by him with the respondent Company on interest 1S% per annum, payable on demand. On November 21, 1985, a notice was served upon the respondent Company to made payment of the said amounts with interest. The respondent Company requested him to wait for six months Rs. 2,13,242.00 and Rs. 60,995.00 were outstanding against the respondent company till the date of filing of the petition. Not a single paisa has been paid despite several demands and notices. The respondent Company is heavily indebted to various financial institutions, banks and private parties. Its factory is lying closed. No production or trading activity is being carried out by it. The financial institutions and the banks have taken coercive steps for the recovery of their amounts.