The court can order the winding up of a company under Section 433 of the Companies Act if the company is unable to pay its debts and fails to respond to notices and court orders.

( 1 ) THIS petition is filed by the Delhi Stock exchange Association Ltd. under Section 433 of the Companies Act praying for winding up of the respondent company. While admitting this petition on 1. 5. 2001, following order was passed:

"cp. 387/2000 this petition is filed under Section 433 of the Companies Act praying for the winding up of the respondent company on the ground that the respondent company is indebted to the petitioner but is unable to repay the debt. Even though the petitioner had issued a statutory notice dated 3rd March,2000 under Section 434 of the Companies act to the registered office of the respondent company, the respondent did not even care to send a reply. Even to the notice issued by this court to show cause as to why the petition be not admitted, there is no response from the respondent. There is no representation for the respondent despite service of notice and no reply has been filed on behalf of the respondent. 3. I have considered the averments in the petition and the materials placed on record. In the light of the facts stated above, I am satisfied that the petition deserves to be admitted for hearing. Hence the petition is admitted for hearing. Let citation be published in one issue of Statesman (English) published from Delhi and Navbharat times (Hindi) for 21st September,2001. 4. There is no representation for the respondent and no reply has been filed on behalf of the respondent. The interim order passed on 3rd november,2000 is extended until further orders. The question of appointing a provisional liquidator will be considered on the next date. Renotify on 21st September,2001. "

( 2 ) PURSUANT to the aforesaid order citations were published in Statestnan ( English) and Navbharat Times (Hindi) on 7. 11. 2001 after extension of time in publication, time was granted. However, in spite of these citations no body has appeared on behalf of the respondent on subsequent dates and, therefore, on 21. 1. 2003, Official Liquidator was appointed as the Provisional Liquidator of the company. After the appointment of the Provisional Liquidator respondent company filed CA. 307/2003 for recalling of the order of appointment of Provisional liquidator. During the pendency of this application, compromise/settlement talks started between the parties. On 21. 8. 2003 counsel for respondent company made a statement that respondent was prepared to pay the dues of the petitioner and also expenses of the Official Liquidator in order to take back possession of the property which was already sealed by the Official Liquidator. Some kind of settlement was arrived at between the parties and on 6. 11. 2003, following order was passed:

" None appears for the respondent when the matter is called out. The respondent has arrived at a settlement out of court with the petitioner. It is stated by the counsel appearing for the petitioner that the entire agreed amount stands paid to the petitioner. However, the expenses incurred by the official Liquidator in taking over the said assets and also in preserving the same and providing security to the premises have not been paid. It is pointed out that an amount of Rs. 1,18,800/- has been spent by the Official Liquidator for providing security to the premises as on 31. 10. 2003 and an additional amount of Rs. 25,000/- is also to be paid to the official Liquidator towards expenses. The total amount, therefore, which is payable to the Official Liquidator is rs. 1,43,800/- as on 31st October,2003. The said amount is not paid. Therefore, the property shall continue to be in the custody and possession of the Official liquidator until further orders. Renotify on 2nd February,2004,"

( 3 ) HOWEVER, thereafter respondent stopped appearing. The Official Liquidator was directed to file a report, He has filed the report dated 6. 9. 2004 in which it is stated that in terms of. the order dated 12. 9. 2003, letters were issued to all the Ex-Directors of the company (in liquidation) for ma