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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Hon'ble Pankaj Bhatia,J.
Zaitek Polyblends Pvt. Ltd. – Appellant
Versus
Durga Bansal Fertilizer Ltd. – Respondent
JUDGMENT :
Pankaj Bhatia, J.
1. Heard Mrs. Shraddha Agarwal, learned counsel assisted by Shri Shobhit Mohan Shukla and Ms. Gursimran Kaur, learned counsel for the petitioner; Shri. N.K. Seth, learned Senior Advocate, assisted by Shri Pritish Kumar, Shri Tushar Hirwani, Shri Amal Rastogi, learned counsel for the Respondent No.1; Shri R.K. Verma, learned counsel for the Respondent No.2 and Shri Anurag Verma, learned counsel for Official Liquidator.
2. Present petition has been filed under Section 439 (1)(b), Section 433 (e) & (f) and Section 434 (1)(a) of the Companies Act as well as under Section 20(1) of The Sick Industrial Companies (Special Provisions) Act, 1985 by the petitioner/company seeking winding up of the respondent/company mainly on the ground that it has failed to pay the admitted amounts of Rs.21,55,52,263/- (Rupees Twenty One Crore Fifty Five Lakhs Fifty Two Thousand Two Hundred and Sixty Three only) excluding the interest upon the unsecured loan as detailed in Para 19(iii) of the notice.
3. It is also stated that the Board for Industrial and Financial Reconstruction (for short ‘BIFR’) had recommended the winding up of the company on 26.07.1996 and the said order was af
A company cannot be wound up for non-payment of disputed debts; readiness to settle admitted liabilities negates grounds for winding up.
Winding-up of a company can proceed based on admitted debts; mere disputes of amount do not suffice to prevent orders under Section 433(e) of the Companies Act.
A winding up petition cannot proceed if the statutory notice is not validly issued to the company as required by Section 434 of the Companies Act, 1956.
Winding up petitions require justifiable grounds; availability of alternative remedies can lead to dismissal.
Transactions executed after the commencement of winding-up proceedings are void under Section 536(2) of the Companies Act unless validated by the court, reinforcing the need for evidence that such tr....
Executors can proceed with litigation after a transfer of rights pendente lite when original parties fail to contest decrees, and mere allegations of fraud do not invalidate judicial decisions.
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