Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Winding up proceeding Companies Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Companies Act, 1956-Section 433(e)-Winding up proceedings-Maintainability of-Held : Maintainable when there is determined debt due and the company is unable to pay-Expression 'unable to pay its dues' to be taken in commercial sense-Machinery for winding up not to be utilised merely for releasing debts from a company-On facts, petitioning creditor failed to prove that the debt is payable to it by the company-Hence winding up orders cannot be passed Words and phrases-'unable to pay its dues'-Meaning of in the context of Section 433(e) of Companies Act, 1956. Respondent-company filed a winding up petition against the appellant-company on the ground that appellant had failed and neglected to refund US $ 5000 and US $ 11000 which was remitted to it by respondent as bid amount. Appellant opposed petition contending that said amounts were not payable to respondent-company. Single Judge of High Court disposed of the winding up petition holding that appellant has disputed the amount of US $ 5000 but so far US $ 11000 is concerned, the same may be repatriated to the remitter and directed appellant to deposit Rs. 4.69 lacs equivalent to US $ 11000 and in case of default, the petition would stand admitted and it would then be open to the petitioning creditor to pray for issuance for advertisement. Aggrieved by the order, appellant filed an appeal before Division Bench along with stay application. Division Bench granted stay of issuance of advertisement and directed appellant to deposit Rs. 2 lakhs. Appellant made the deposit. Subsequently, Division Bench dismissed the stay application and the appeal. In appeal to this court, appellant contended that the Division Bench erred in dismissing the appeal summarily on the finding that the appellant is not entitled to any stay; that the remitter of US $ 11000 was not the petitioning creditor but altogether a different company and that the winding up proceedings is not maintainable by the alleged petitioning creditor as no debt is payable by appellant to them. |
Judge | Hon'ble Dr. Justice A.R. Lakshmanan |
Neutral Citation | 2005 INSC 154 |
Petitioner | Mediquip Systems Pvt. Ltd. |
Respondent | Proxima Medical System G.m.b.h. |
SCR | [2005] 2 S.C.R. 1015 |
Judgement Date | 2005-03-17 |
Case Number | 1811 |
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