Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2015 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 411 - HC - Companies LawApproval of Winding Up Petition for non-satisfaction of the award Petitioner holds that the Respondent failed to satisfy the award and the objections so raised by them are untenable and the claim needs a fresh arbitration proceeding to be filed Petitioner contends that Respondents were unable to clear the liability and after finalisation of the award Petitioner has the right to secure its payment by all means available under law and the Respondent cannot assail the award after its finalisation Respondent, on the contrary, contends that it has a claim against the Petitioner thus denied its demand Respondent also contended that the provisions of Section 433(3) and 434(1) can be invoked only if the debtor is unable to pay its debt and not if the refusal is on account of denial of liability Respondent further holds that to enforce the award, petitioner could only file the execution petition and not the winding up petition thus petition for winding up is not maintainable. Held That:- Winding up petition is a perfectly proper remedy as it is the mode of execution given by Court to a creditor against a company unable to pay its debts Any creditor has a right to approach the Court pointing out that its admitted debt is not paid on which the Court then considers company needs to wind up or not - There is no warrant to deprive a creditor with a decree of foreign Court and the same can also file a winding up petition it is clear that Respondent is unable to clear its debts and has neglected to satisfy the demand without any sustainable reasons thus petition is admitted with further directions given Decided in favour of the Petitioner.
|