M.C.Jain, J. - (1.) The petitioner has made this petition for the winding up of the respondent-company Jokhodia Engineering Works (P.) Ltd., having its registered office at Pokharpur (Chakeri Road) P.O. Shewan Tannery, Kanpur. The case of the petitioner is that it supplied goods to the respondent-company. The latter issued various cheques for the payment of price of the material. The details of the cheques are given below : JUDGEMENT_225_LAWS(ALL)7_2000.htm
(2.) As per the petitioner, the cheques were submitted to the bank for collection but all of them were returned with the remark "insufficient funds". The statutory notice under section 434 of the Companies Act, 1956 was sent by the petitioner to the respondent-company on 17-7-1994 which was served at the registered office of the respondent-company on 26-6-1994 and thereafter on 23-7-1994 by registered post. The respondent-company failed and neglected to make the payment. On these allegations, the winding up petition is founded.
(3.) On notice being issued to the respondent-company counter affidavit was filed. It was denied that the cheques had not been issued. The defence was that the cheques were issued by it in advance for the material which was yet to be lifted in future. The goods which were supplied were of sub-standard quality. The accounts were not settled and, therefore, the amount was never paid. After hearing both the parties, this court found by order dated 27-9-1999 that prima facie the company was unable to pay its debt. It was granted two months time to pay the sum of Rs. 42,38,192.60 to the petitioner by bank draft. It was directed that in case the amount was not paid within this period. The petition would be advertised under rule 24 of the Companies (Court) Rules, 1959. No payment came to be made by the respondent-company to the petitioner after the passing of the said order. On 5-5-2000, the learned counsel for the respondent-company submitted that special Appeal against the order dated 27-9-1999 had been filed and stay order was likely to be passed shortly. It was ordered on 5-5-2000 that the petitioner would take steps within three weeks for advertisement as per rule 24. It was also observed that in case stay order was filed in the meantime, advertisement would not be made.;