ESSAR GUJARAT LTD. Vs. UNITED ISPAT UDYOG PVT. LTD.
LAWS(HPH)-1997-10-1
HIGH COURT OF HIMACHAL PRADESH
Decided on October 22,1997

Essar Gujarat Ltd. Appellant
VERSUS
United Ispat Udyog Pvt. Ltd. Respondents


Cited Judgements :-

HARYANA TELECOM LTD VS. HIMACHAL FUTURISTIC [LAWS(HPH)-2004-10-15] [REFERRED TO]


JUDGEMENT

P.K.PALLI, J. - (1.)THIS petition has been filed by the petitioner/creditor for winding up of the respondent company under the provisions contained in Sections 433(e), 434 and 439 of the Companies Act, 1956.
(2.)THE petitioner is a public limited company with its registered office at Surat (Gujarat) and is engaged in the production of iron and steel. The respondent company placed orders for the supply of various products and the payment was to be made at the time of placing the order. It is averred that goods were supplied between June 25, 1991, and May 31, 1993, under various delivery challans and invoices. Details are given in the statement of account placed on record as annexure C. As per statement of account an amount of Rs. 74,94,262.37 is said to be due from the respondent to the petitioner. The respondent is said to have given various cheques from time to time in favour of the petitioner for the amount totalling to the out said above. The details are given in annexure D. The cheques are said to have been dishonoured by the bankers of the respondent as per annexure D placed on record.
Despite several letters written by the petitioner to issue demand drafts in lieu of dishonoured cheques, there was no improvement. The letters have been collectively placed on record as annexure E. According to the petitioner, the issuance of the cheques by the respondent amounts to admission of its liability for the payments stated therein. The non payment by the respondent amounts to its inability to pay its debt and reflects financial crisis. Interest is claimed at the rate of 24 per cent. per annum and is calculated at Rs. 24,42,660.69 from the date the said amount became due as on the filing of the petition.

(3.)LEGAL notice dated June 11, 1993, is said to have been served on the respondent. This notice along with acknowledgment due is annexed as annexure F. It is said that the company has become commercially insolvent and being unable to discharge its debts, it is just, equitable and necessary that it is wound up under the provisions of the above said Act.


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