JAYASWALS NECO LIMITED Vs. RITA MACHINES (INDIA) LTD.

JUDGEMENT

(1.) THE petitioner has sought winding up of the respondent -Company on the ground that it is unable to pay the admitted debts.

(2.) THE respondent is a Company incorporated under the Companies Act, 1956 (for short 'the Act') as a Public Limited Company, engaged in the manufacturing of sewing machines.

(3.) THE respondent purchases "pig iron" on 30 days' credit basis. The respondent was transacting with the petitioner since April, 1997. All the co -signments were being despatched alongwith the invoice -cum -challan bills in conformity and in compliance with the purchase orders, issued by the respondent. The respondent was accepting the consignments of pig iron without any demur. Keeping in view demands made by the respondent from time to time, a sum of Rs. 24,08,509/ -, is the amount outstanding due and payable by the respondent towards supply of "pig iron" along with interest on the delayed payment. It is further pointed that notices were sent on 30.6.2001 and 29.1.2002 on behalf of the petitioner through its Advocates but no reply was received. Still later, statutory notice as contemplated under Section 434 of the Act, was issued on 19,9.2002 for not making payment towards the supply of pig iron. The respondent has not responded to the said notice as well. Since the respondent failed to settle the account of the petitioner to its satisfaction, the petitioner sought the winding up of the respondent -company.