2013 (7) TMI 1154 - HC - Companies Law

Summary

Issues involved: Petition for winding up of a limited company u/s Companies Act, 1956 due to dishonored cheques and non-payment of loan amount.

Details of the judgment:

1. The petitioner advanced consideration of Rs. 10 lakhs to the respondent company by a cheque dated 11 June 2012. The respondent issued an On Demand Bill of Exchange which was accepted but later dishonored. Subsequent attempts to present the bill were also unsuccessful. The respondent issued two cheques totaling Rs. 10 lakhs which were returned due to insufficient funds. A statutory notice was sent on 9 March 2013, but no response or payment was received.

2. The petition was accepted on 11 June 2013, and an affidavit of service confirmed that the respondents were duly served. The respondent did not appear. The court noted that the loan amount was acknowledged by the respondent, but payment was not made without any justifiable reason. The cheques issued were dishonored due to insufficient funds, and no reply was given to the statutory notice. The court found the averments in the petition uncontroverted and made a case for admission.

3. The Company Petition was admitted and set to be returnable on 13 September 2013. The advocate for the petitioner undertook to publish the next hearing date in two newspapers and the Maharashtra Government Gazette. The petitioner was directed to deposit Rs. 10,000 for publication charges within two weeks, failing which the petition would stand dismissed. The office was directed to issue notice to the Company u/r 28 of the Companies (Court) Rules, 1959.