JUDGMENT - LODHA R.M., J.:---This group of four appeals is directed against the order dated 28th June, 1995 passed by the learned Company Judge and accordingly, we heard all the four appeals together and dispose of them by this common judgment.

2.The Maharashtra State Farming Corporation Ltd. (for short the Corporation) filed two company petitions being Company Petition No. 200 of 1988 and Company Petition No. 307 of 1988 for winding up of the Belapur Sugar Allied Industries Ltd. (for short the Company). The winding up of the company was sought under sections 433 and 434 of the Companies Act on the ground that the company had become financially and commercially insolvent as it was unable to discharge its debts.

3.In the Company Petition No. 200 of 1988, the corporation set up the plea that the company was indebted to it in the sum of Rs. 72,79,900.78 as on 13th March, 1987 alongwith the interest at the rate of 18% per annum. The corporation averred in the said company petition that for the sugarcane supplied in the year 1985-86 (the rate of sugarcane having not been finalised by that time) an amount of Rs. 11,32,974.97 was due and payable by the company and for the sugarcane supplied in the year 1986-87 (first instalment), the principal amount of Rs. 59,57,905.90 was due and payable alongwith the interest of Rs. 4,673.75 upto 31-12-1986. The due amount also included an amount of Rs. 1,84,346.16 against the company for having falsely disputed the interest payable by them for the period from 1978-79 to 1982-83. The corporation vide statutory notice dated 23rd June, 1987 called upon the company to pay to the corporation the aforesaid amount together with interest thereon at the rate of 18% per annum, failing which the company was informed that it would be deemed that it was unable to pay its debts. The company responded to the said notice by its reply dated 15th July, 1987 and denied the claim of the corporation. The corporation vide its letter dated 3rd December, 1987 refuted the allegations made by the company in the reply dated 15th July, 1987.

4.By means of the Company Petition No. 307 of 1988, the Corporation set up the case that the company was indebted to the corporation to a further sum of Rs. 23,45,299.11 as on 7th August, 1987 with interest thereon at the rate of 18% per annum. It was averred in this company petition that the amount of Rs. 11,32,974.97 for supply of sugarcane for the season 1985-86 was included in the statutory notice dated 23rd June, 1987 but at that time, the rate of sugarcane was not finalised. The total price towards supply of sugarcane for the season 1985-86 at the rate finalised was Rs. 33,68,226.25 and after excluding an amount of Rs. 11,32,974.97 which was part of statutory notice dated 23rd June, 1987 and the Company Petition No. 200/1988, the balance of the principal amount of Rs. 22,35,251.28 was due and payable by the company with interest in the sum of Rs. 1,10,047.83 as on 30th November, 1987. The Corporation, thus set up the case by means of both company petitions that an aggregate sum exceeding rupees ninety six lacs alongwith interest at the rate of 18% per annum was due and payable by the company but since the company was not in a position to pay its debts and unable to meet its liabilities, the company be wound up.

5.The company contested both the company petitions. It did not dispute the supply of sugarcane by the Corporation during the seasons 1985-86 and 1986-87 but raised diverse pleas inter alia (a) that it was not liable to pay interest towards the false transactions for the years 1978-83; (b) that an amount of Rs. 17,63,015/- in respect of the petitioners bill dated July 9, 1986 having already been paid, it was not liable to pay an amount of Rs. 11,32,974.97 towards the sugarcane supplied in the year 1985-86 and (c) that the company has a counter claim towards the rental charges of the lands and buildings given to the Corporation for housing their staff and the office premises. T

Click Here to Read the rest of this document