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2015 (6) TMI 369 - RAJASTHAN HIGH COURT

2015 (6) TMI 369 - RAJASTHAN HIGH COURT - TMI - Non 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 .....

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ub-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. - S.B. Company Petition No. 4/2012 - Dated:- 3-4-2015 - MR. ALOK SHARMA, J. Mr. Shivang .....

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of ₹ 5,84,131/-, were duly received and consumed without any demur or any objection on any count as to quantity and quality by the respondent company. It has been submitted that the respondent company made payment only of ₹ 30,773/- against ₹ 5,84,131/- to the petitioner company. In these circumstances the petitioner company sent a notice dated 19.9.2011 under section 433 read with 434 of the Companies Act 1956 (hereinafter 'the Act of 1956') by speed post to the respon .....

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ent company having ordered the goods and received them and utilized them was now seeking to wriggle out from its obligations to pay the price thereof which constitutes a debt payable to the petitioner company. It has been submitted that the petitioner company seeking to salvage a lead bargain with a discount purchaser even offered a discount of ₹ 50,000/- to the respondent company on the outstanding due amount but to no avail. Counsel for the petitioner submits that a bare perusal of the r .....

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6. Despite service of notice, reply to the company petition has not been filed. Heard the counsel for the petitioner and perused the petition as also the supporting documents. 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 fro .....

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itioner company; (iv) Whether the defence to the winding up petition set up is one of the substance. In the instant case it is evident that the petitioner company on purchase order placed supplied Agro Chemicals (goods) to the respondent company. The commercial relationship between the petitioner company and the respondent company is established from the documents filed with the company petition more particularly the respondent company's reply dated 29.10.2011 to the notice under section 434 .....

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