PRABIR KUMAR MAJUMDAR, J.

( 1 ) THIS appeal arises out of a judgment and order passed by a learned single judge of this court on August 3, 1982.

( 2 ) THE respondent, Messrs. Jainti Enterprises, describing itself as a registered firm, presented a petition for the winding up of the appellant company. The case as made out by the respondent in its petition for winding up is that by an agreement dated November 28, 1975, the appellant agreed to sell dolomite to the respondent for a period of five years with an option for renewal upon the terms and conditions contained therein. Pursuant to the said agreement, the respondent had been buying from the appellant against advance payment from 1975 to 1977. After adjustment of accounts it was found, according to the respondent, that the appellant was indebted to the respondent for a sum of Rs. 24,062-42. It is alleged by the respondent that the statement of account between the parties was settled and confirmed wherefrom a sum of Rs. 24,062. 42 remained due to the respondent from the appellant and was settled at Rs. 24,000. The respondent alleged that in confirmation of the said account, the appellant paid Rs. 6,000 in cash and issued four cheques for the balance sum of Rs. 18,000. The said cheques were, however, not presented for encashment and, as such, the said sum of Rs, 18,000 remained unpaid. The said sum of Rs. 18,000, remained due and owing to the respondent by the appellant. Hence, the said petition for winding up.

( 3 ) AFTER presentation of the said petition for winding up, the appellant deposited a sum of Rs. 10,000 in cash by way of security with Messrs. T. K. Gupta and S. Brahmachari, the two advocates on record for the parties. On August 3, 1982, the said petition for winding up was admitted. The appellant, being aggrieved by the said order dated August 3, 1982, preferred the present appeal to this court and upon admission of the said appeal, the court of appeal granted stay of operation of said order appealed from. Pursuant to the order of the court of appeal, the appellant deposited the balance claim of Rs. 8,000 in cash with the Registrar, Original Side, of this court.

( 4 ) THE appellant's case was that in terms of the said agreement dated November 28, 1975, the appellant agreed to supply and the respondent agreed to purchase dolomite against advance payment to be made to the appellant. According to the appellant, it was, inter alia, provided in the agreement that the part payments to be paid by the respondent to the appellant against the price of dolomite would be adjusted against the fortnightly bills to be drawn by the appellant upon the respondent and the settlement of the final account was to be made quarterly. The said agreement, according to the appellant, further provided that if the respondent closed down its business, then a written notice thereof should be given to the appellant at least three months before. It was the allegation of the appellant that without any notice to the appellant, the respondent suddenly stopped placing any further order on the appellant for the purchase of the products since the middle of November, 1977, whereby the appellant suffered huge losses and damages to the tune of Rs. 4,52,250, particulars whereof were set out in annexure " C " to the affidavit filed on behalf of the appellant before the court of the first instance. Regarding the issuance of four cheques for the sum of Rs. 18,000, the appellant's case was that the appellant issued those cheques on the agreement between the parties that the said cheques would not be presented to the bank for encashment until the respondent's dues under the said agreement dated November 28, 1975, was settled. It was alleged by the appellant that in view of its claim to the tune of Rs. 4,52,250 against the respondent, nothing remained due and owing by the appellant to the respondent.

( 5 ) THREE points urged by the appellant before the court of the first instance were, firstly by that the res

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