Dr. S. Muralidhar, J.

1. IFCI Factors Ltd. (‘IFL’) has filed this petition under Section 439 read with Sections 433(e) and 434 read with Section 439 of the Companies Act, 1956 (‘Act’) seeking the winding up of the Respondent, Krish International Pvt. Ltd. (‘KIPL’).

2. The background facts are that in 2010, KIPL approached IFL to avail of sales bill factoring facility to the tune of Rs. 5,00,00,000/-. In the petition, the nature of a factoring transaction is explained as under:

“Essentially, in a factoring transaction what occurs is that in consideration of finance provided by the Factor (which in this case is the petitioner), the borrower (which in this case is the respondent) assigns its receivables to the Factor under its commercial transaction with a debtor approved by the Factor, and also specifically makes itself liable for rendering all outstanding amounts to the Factor, in the event of the purchaser of goods (approved debtor) defaulting in making payment of the borrower’s receivables to the Factor. Effectively, what the respondent would do in this transaction is to sell goods to its purchaser, and in consideration of its executing the relevant factoring documents