TMI Blog1971 (11) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... n on March17,1967, inter alia , for winding up of Canhag Private Ltd. (hereinafter referred to as "the company"). The winding-up petition was presented on the ground that in spite of service of the statutory notice the company failed and neglected to pay the debt due to the petitioners and also otherwise the company was commercially insolvent. While this petition was coming up for hearing for adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by Nain J., on June 30, 1971, Fatehi Brothers were allowed to amend the petition. As a result of this amendment Fatehi Brothers (hereinafter referred to as "the substituted petitioners") were permitted to plead that they were creditors of the company in the sum of Rs. 24,000; that in spite of service of the statutory notice under section 434 of the Companies Act, 1956, the company had fail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfaction of the creditor. By an agreement dated December 1,1962, the substituted petitioners were appointed by the company as stockists for retail sale and distribution of some of their products. Pursuant to this agreement the substituted petitioners had deposited with the company a sum of Rs. 24,000. The period under the said agreement expired on November 30, 1965, and by their letter date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of 4% per annum within three weeks of the receipt of the said notice. There was further correspondence between the substituted petitioners and the company which shows that in spite of demands the company failed to refund the deposit of Rs. 24,000 with interest or any part thereof. In view of the correspondence annexed to the petition as a result of the amendment allowed, it is quite clear tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led and neglected to pay to the substituted creditors the sum of Rs. 24,000 due to them with interest and has failed to secure or compound for it to the reasonable satisfaction of the creditors, this is a clear case where the company is unable to pay its debts. In the result, Canhag Private Ltd. is ordered to be wound up by and under the directions of this court and the official liquidator is ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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