2007 (1) TMI 266 - HC - Companies Law

Summary

Issues involved:
The judgment involves issues related to the maintainability of a winding up petition based on acknowledged debt, dispute over liability, and the sufficiency of evidence in a running account.

Maintainability of Winding Up Petition:
The respondent filed a winding up petition against the appellant company for its inability to pay acknowledged dues. The Company Judge held the petition maintainable, directing the appellant to deposit a specified sum. The appellant challenged this order in the present appeal.

Acknowledged Debt and Dispute over Liability:
The appellant acknowledged an outstanding debt in a letter but later denied liability, claiming defective goods. The Company Judge rejected the appellant's argument that the petition was not maintainable due to a running account, emphasizing the acknowledgment of debt in the letter dated 11-1-1999.

Sufficiency of Evidence in Running Account:
The appellant argued that the winding up petition was based on a running account and should be resolved through a civil suit. The respondent relied on a judgment highlighting the acknowledgment of liability in the appellant's letter. The Court dismissed the appeal, emphasizing the acknowledgment of debt and directing compliance with the Company Court's orders.