Haryana Supreme Marketing Company vs Euro India Shoes (Madras) Pvt. Ltd.

Vinod K. Sharma, J.—This Petitioner M/s. Haryana Supreme Marketing Company filed this petition for winding up of the Respondent

company M/s. Euro India Shoes (Madras) Pvt. Ltd., for its inability to pay the admitted liability.

The Petitioner supplied materials to the Respondent company as per the orders placed from time to time. The invoices depicting supply were

signed by the Respondent acknowledging the receipt of the goods. An amount of Rs. 8,14,807/- (Rupees eight lakhs fourteen thousand eight

hundred and seven only) is outstanding against the Respondent company.

The Petitioner claims that the amount was payable with interest @ 24% p.a. from due date till the date of actual payment. In discharge of the

admitted liability of Rs. 8,14,807.70 (Rupees eight lakhs fourteen thousand eight hundred and seven and paise seventy only). The Respondent

company issued four cheques, towards part payment which on presentation were dishonoured.

The Petitioner issued statutory notice under the Companies Act. Inspite of receipt of notice, no reply was received nor the Respondent

company made any payment. The Petitioner submits that Respondent company is unable to meet its admitted liability, therefore, it is ordered to be

wound up.

The Respondent company chose not to appear in the Court inspite of notice. Accordingly the company petition was ordered to be admitted.

The Petitioner was directed to publish a company petition in in one issue of Tamil daily �Dinaboomi� and one issue of English daily, �News

Today� as also in Government gazette. The date of hearing was fixed on 5.3.2004.

The Petitioner complied with the direction given by this Court and this Court, on 11.12.2006 ordered winding up of the Respondent company,

by passing the following order:

The Petitioner has complied with the formalities. Inspite of the publication effected, there is no response from the Respondents before this Court.

The Company petition is of the year 2002. Till this day, no progress has been shown from the Respondent rather he has appeared before this

Court.

Therefore, winding up of the Respondent company is hereby ordered directing the Official Liquidator to take charge of the assets of the company.

The Ex-Directors are directed to file statement of affairs of the company within 21 days. The Petitioner is directed to pay a sum of Rs. 10,000/- to

the Official Liquidator towards initial expenses. Consequently, connected C.A. No. 1120 of 2002 is closed.

The Respondent thereafter filed C.A. No. 1045 of 2007 for recalling the order of winding up, on the ground that the Respondent company was

willing to settle the matter, as the Respondent was a running concern. The application was allowed and order dated 11.12.2006 was recalled.

The learned Counsel for the Petitioner, contends that the Respondent did not honour the settlement, arrived at between the parties. The

uncontroverted pleadings proved that the Respondent company is unable to meet its admitted liability.

Rule 113 of the Companies (Court) Rule 1959, reads as under:

Rule 113 Advertisement of the order - Save as otherwise ordered by the Court, every order for the winding up of a company by the Court, shall

within 14 days of the date of making the order, be advertised by the Petitioner in one issue each of a newspaper in the English language and a

newspaper in the regional language circulating in the State or the Union Territory concerned and shall be served by the Petitioner upon such

person, if any, and in such manner as the Judge may direct. The advertisement shall be in Form No. 53.

In exercise of power conferred under Rule 113 of the Companies (Court) Rules 1959, the advertisement for winding up of the Respondent

company is ordered to be dispensed with, as all formalities of winding up process already stood completed, and order of winding up was recalled

on the application moved by the Respondent company. However, the Respondent company failed to honour the settlement.

The Respondent company M/s. Euro India Shoes (Madras) Pvt. Ltd., Ismail Nagar, Ammour, Walajah Taluk, N.A. District is ordered to be

wound up under the provisions of the Companies Act, 1956.

The Official Liquidator attached to this Court is appointed as Liquidator of the Company. He is directed to take charge of all the properties

and effects of the Respondent company forthwith. The Official Liquidator is further directed to serve copy of this order in a sealed cover on the

Respondent company by way of pre-paid registered post. The Petitioner shall serve certified copy of this order of winding up on the Registrar of

Companies, not later than one month of this date.

The cost of the company petition be recovered from the assets of the company.