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2015 (6) TMI 369 - HC - Companies LawNon payment of dues - Notice sent under section 433 read with 434 of the Companies Act 1956 - Maintainability of winding up petition - Charges of sub-standard goods - Held that:- It is no doubt true that a winding up petition cannot be equated to a suit for recovery of money. It is however, equally true that neglect in payment of debt due as statutorily defined without a bonafide dispute or substantial defence entails the consequence of winding up of a company in default. That is the conclusion from reading of Section 434(1)(a) read with 433(e) of the Act of 1956. Refer Apex court case of Vijay Industries v. NATL Technologies Ltd. [2008 (12) TMI 404 - SUPREME COURT OF INDIA]. No steps under the Sale of Goods Act, 1948 either to reject the supposedly sub-standard goods or seek a diminution of their price appears to have been taken by the respondent company. Obviously the goods in issue as supplied being consumed, they were not sub-standard. A belated half-hearted dispute indicates that the allegation of goods supplied being sub-standard was /is not bonafide and the respondent company has no substance in its defence at all. The defence set up in the reply dated 29.10.2011 to the notice under section 434 of the Act of 1956 was/ is vague and quite apparently is belated one incapable of any credibility. - Decided in favour of appellant.
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