( 1 ) -THIS is an application for winding up M/s. Associated Forest Product (P) Ltd. (referred to as the Company) on the ground that the company is commercially insolvent.

( 2 ) THE undisputed facts are: The petitioning Creditor (which is a company carrying on business in Singapore) entered into an agreement with the company on 12th August, 1986 by which the petitioning creditor agreed to supply and the company agreed to purchase Sawn Timber Balau (referred to as the goods) from Malayasia at the agreed price of U. S. $ 94,875. 47. On 2nd October 1986 the goods arrived at Calcutta from Malayasia by ship and were taken delivery of by the company. Three bills were raised in respect of the goods by the petitioning creditor on the company. At the request of the company the petitioning creditor agreed to give a discount on the price for the goods so that the total amount payable by the company to the petitioning creditor was U. S. $ 87,503. 37. The company however, did not make any payment of any amount in respect of the goods to the petitioning creditor. Upon a demand being made on the company, the company sent a telex on 7th January 1988 stating that there had been discu