-: 1 :- IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY PETITION NO.288 OF 2008 In the matter of Standard Industries Limited Kemo Enterprises : Petitioner ... Mr.Simil Purohit i./b. M/s.Vimadalal & Co., for the petitioner. Mr.Shrinivas Deshmukh i/b. SRS Legal for the respondent. ... CORAM : S.A. BOBDE, J. DATE : AUGUST 29, 2008. P.C. 1. This is a petition for winding up. The petitioner has claimed unpaid price of goods sold and supplied to the respondent. Since payment was not forthcoming after delivery of goods, the petitioner served statutory notice dated 30.5.2007 on the company claiming a sum of Rs.1,93,469.12 together with interest thereon on the delayed period @ 24% per annum within a period of three weeks. The company’s stand in the reply to the statutory notice is the only contention raised by it before this Court which is as follows: According to the company, they are not liable for -: 2 :- the goods because after the goods were received, due to sudden strike, the quality check of the material could not be conducted and, therefore, they asked the petitioner to take away the material from the factory premises. 2. There is no merit in this defence nor does it raise a bona fide dispute. The company has not denied receipt of the goods. It is not their case that they rejected the goods on the ground that they were sub-standard. It is simply their case that they could not check the quality of the goods and, therefore, they asked the petitioner to take back the goods. It may be noted that the company has not disputed the quantity of the goods supplied and the price agreed upon by the parties. Admittedly, there is no communication rejecting the goods. In these circumstances, it is clear that the property in the goods passed to the company upon delivery. The learned counsel for the respondent-company relied on section 24 of the Sale of Goods Act, 1930 which reads as follows:- "24. Goods sent on approval or "on sale or return".-- When goods are delivered to the buyer on approval or "on sale or return" or other similar terms, the property therein passes to the buyer-- -: 3 :- (a) when he signifies his approval or acceptance to the seller or does any other act adopting the transaction; (b) if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time." The section has no application to the facts of the present case since there is nothing to show that the goods were delivered to the company on approval or "on sale or return" and since, in any case, the company retained the goods without giving notice of rejection. Hence, it is clear that there is an implied admission of liability since the company has admitted the delivery of the goods and their non-objection. 3. The respondent-company is, therefore, directed to deposit a sum of Rs.1,93,469.12 within a period of four weeks from today. Having regard to the liability which -: 4 :- is admitted as aforesaid, the petitioner shall be entitled to withdraw the said amount upon such deposit. If no such deposit is made within the time stipulated above, the petition shall stand admitted and the petitioner shall advertise the petition in two local newspapers, viz., "Free Press Journal", "Maharashtra Times" and in the Maharashtra Government Gazette. The petitioner shall deposit an amount of Rs.10,000/- with the Prothonotary & Senior Master towards the publication charges within three weeks from the date of default with an intimation to the Company Registrar, failing which the petition shall stand dismissed for non-prosecution. 4. In case the said amount is so deposited as directed hereinabove, the Company Petition to stand dismissed. S.A. BOBDE, J.