Lsp IN IN IN THE THE THE HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION COMPANY PETITION NO. 407 of 2000 Ispat Industries Ltd. ...Petitioners V/s. Telcon Electric Industries Ltd. ...Respondents T.N.Tripathi i/b. T.N.Tripathi & Co. for the petitioners. Parag Kathe i/b. Udaipuri & Co. for respondents. CORAM CORAM CORAM : A.M.KHANWILKAR,J. : A.M.KHANWILKAR,J. : A.M.KHANWILKAR,J. DATED DATED DATED : 21st November, 2008 : 21st November, 2008 : 21st November, 2008 P.C. . Heard Counsel for the petitioner. Counsel for the respondents submits that he has no instructions in the matter. He prayed for time to take instructions from the respondent. It is not possible to accede to the request for adjournment as made on behalf of respondents. For, the matter pertains to the year 2000. Petition was admitted as back as on 20th September, 2000. Accordingly, this petition proceeds for hearing. 2. By this petition it is prayed that the respondent company be wound up forthwith on the ground that it is unable to pay its debts. This claim is based on the assertion that the petitioner had sold, delivered and supplied goods to the respondent company from time to time as requested by the company. At no point of time respondents raised any objection regarding quality, 2 quantity or specification of the goods so supplied. The goods supplied from January 1997 till April 1997 were in the aggregate sum of Rs. 9,84,553/-. Seven invoices were issued by the petitioner demanding payment in respect of goods supplied. Out of the said amount respondent made part payment in the sum of Rs. 4,94,500/- only. The outstanding amount which remained unpaid is in the sum of Rs. 4,90,053/-. Inspite of repeated reminders since no payment was forthcoming, petitioner sent notice to the respondents. In response to the demand letter of the petitioner dated 26th June, 1997 sent on fax, the respondents virtually admitted its liability to pay the amount as demanded to state that it had some financial problem and was unable to make payment. This position is recorded in communication dated 1st July, 1997 (Exhibit D) sent by the respondents to the petitioner. The petitioner after waiting for sometime eventually sent statutory notice on 14th October, 1999. Even on receipt of statutory notice no payment was offered nor any reply was sent. Resultantly, petitioner filed the present petition on 22nd March, 2000. Before admission of the petition, respondent was duly served, however, none appeared for the company when the matter was heard for admission. The Court, accordingly, proceeded to admit the petition by order dated 20th September, 2000. The company not only suffered the said order but has not made any 3 attempt to pay the outstanding dues. Significantly, during the pendency of this petition, the respondent company vide its letter dated May 6, 2006 sent to the Advocate for the petitioner informed that the company was willing to pay the outstanding dues but in 24 instalments starting from 30-5-2003 of Rs. 20,000/- per month. However, inspite of that assurance no payment has been made by the respondent company so far. The position that the respondent company is in financial difficulty has been conceded by the respondents as back as in 1997. That position has not changed at all, in particular from 2003 when the respondent company offered to pay the outstanding dues in instalments. Besides, the Respondent has not chosen to file any reply to assert to the contrary. It necessarily follows that the respondent company is unable to pay its debts. On this finding, the petition deserves to be allowed. Accordingly, it is ordered that the respondent company be wound up with immediate effect. Official Liquidator to take over assets of the respondent company and proceed in accordance with law. [A.M.KHANWILKAR,J.] [A.M.KHANWILKAR,J.] [A.M.KHANWILKAR,J.]