The appellant’s petition for winding up under Section 433 (1) of the Companies Act was dismissed and therefore, this appeal has been filed.

2. The appellant is a Company incorporated in Israel and dealing inter alia in home textiles. The respondent is a Company registered under the Companies Act and deals interalia in cotton fabrics. In the year 2001, there was a transaction between the appellant and the respondent. The respondent instituted legal proceedings against the appellant for amounts due on supply of goods. The appellant filed a counter-claim for damages for supplying defective fabrics.

3. By a judgment dated 5. 2005, the Magistrate Court in Israel allowed the counter-claim of the appellant and rejected the claim of the respondent. This amount awarded by the Israel Court works out to approximately US$342,623.11 as on 17. 2006 (Rs.1,38,76,235/-). The appellant issued a notice dated 17. 2006 under Section 433(2) read with Section 434 of the Companies Act. The respondent denied its liability to pay, questioning the demand made based on the Israeli Court’s adjudication. Since there was no positive response to this notice, the appellant filed a petition for winding u