(1.) THE petitioner has filed this petition for the winding up by the Court of the company Deepak Machineries Pvt. Ltd. under the provisions of the Companies Act, 1956 on the ground that the company is unable to pay its debts.
(2.) THE petitioner's claim arises in respect of C. R. C. A, sheets sold and delivered by it to the company. The amount due in respect of the said transactions and the mode of payment thereof was settled in terms of a writing dated 23rd April, 1999. It would be convenient to set out all six clauses, which read as under :-
(3.) THEREAFTER by a letter dated 23rd May, 1999, the company informed the petitioner that it was unable to clear the outstandings due to their auditors objection on account of the petitioner not having issued the credit notes. By a letter dated 24th May, 1999, the petitioner stated that the credit notes would be issued only after the outstandings were cleared. This stand may or may not be justified. It is however pertinent to note that in this letter, the petitioner stated that the company could withhold an amount of rs. 15,00,000/- in respect of the credit notes and clear the balance outstandings of Rs. 1,36,00,000/ -. It is then important to note that the company did not respond stating that the sum of Rs. 15,00,000/- suggested by the petitioner to be adjusted was too low. Indeed if it was too low the obvious response of the company would have been to insist that a higher amount be adjusted in respect of the credit notes. The stand taken by the company before me is that after issuance of credit notes and adjusting amounts due to the company by way of alleged damages, an amount of only Rs. 15,00,000/- will be found due and payable to the petitioner.