Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

In re: M/s. Prabhat Marketing Company Limited

2015 (6) TMI 369 - RAJASTHAN HIGH COURT

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 of a company in default. That is the conclusion .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cates 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. Shivangshu Naval for the Appellant ORDER The case of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nsumed 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 respondent company calling upon the respondent company .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d 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 reply dated 29.10.2011 to the notice under sectio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ny 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 from reading of Section 434(1)(a) read with 433(e) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 of the Act of 1956 at the instance of the petit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version