( 1 ) THE petitioner viz. Plachem Industries has filed this petition under Sections - 433 and 434 of the Companies Act, 1956 for winding up of the respondent Company on the ground that the respondent - Company has failed to make the payment of Rs. 4,93,000/- to the petitioner.

( 2 ) IT is the case of the petitioner that the respondent Company required loan on short term basis for an amount of Rs. 5 lacs and hence the request was made to the petitioner. The petitioner accordingly advanced a sum of Rs. 5 lacs in the form of three cheques on 7. 11. 1994, 12. 11. 1994 and 19. 11. 1994 for an amount of Rs. 3 lacs, Rs. 1 lac and Rs. 1 lac respectively. The respondent Company, towards part payment of the said liability has issued cheque of Rs. 2,50,000/- on 5. 12. 1994 and the balance amount of Rs. 2,50,000/- alongwith the interest has not been paid by the respondent - Company to the petitioner despite repeated requests, the respondent Company has failed to make said payment either under one or another pretext. Since the petitioner was persistently demanding the amount, the respondent Company issued two cheques No. 355540 and 355541 dated 7. 2. 1995 and 8. 2. 1995 for Rs. 1 l