Shantanu Kemkar, J.

( 1. ) This order shall also govern disposal of Company Petition No. 12/2005 and Company Petition No. 15/2005.

( 2. ) This petition has been filed under Section 433 (e) of the Companies Act, 1956 (for short the Act) seeking winding up of the respondent Company.

( 3. ) In Company petition no.8/2005 averments have been made that the respondent Company is indebted to the petitioner Company for a sum of Rs.83,07,021/- which includes principal amount as on 31.03.2004 to the tune of Rs.68,80,085/- amount of tax deducted at source Rs.2,58,736/-, interest @ 20% from 01.04.2004 to 31.01.2005 to the tune of Rs.11,68,200/-. In Company Petition No. 12/2005 it has been averred that Rs.33,08,836/- is due to the petitioner Company from the respondent Company out of which towards principal amount due is Rs.27,48,125/- towards interest from 01.04.2005 to 15.02.2005 to the tune of Rs.66,349/- is due and towards further interest from 16.02.2005 till 30.07.2005 to the tune of Rs.1,94,362/- is due. In Company Petition No, 15/2005 the due amount to be recovered from the respondent Company by the petitioner Company is averred to be to the extent Rs.5,57,71,017/- with interest @ 15% per annum.

( 4. ) The Company Petition No.8/2005 being the first amongst all the three Company petitions, the order is being passed in Company Petition No. 8/2005 which will govern the other Company petitions.

( 5. ) It has been averred by the petitioner that the respondent Company has become commercially insolvent and is unable to pay its debts. A legal notice of demand was served upon the respondent Company but even after the expiry of statutory period the debts have not been paid. According to the petitioner the financial position of the respondent company is such that the company is unable to meet its current liabilities and pay its debts. The liabilities of the company far exceeds its assets. It has been averred that the company has lost its commercial substratum in view of Annual Reports of the respondent company for the period 2000 to 2004.

( 6. ) The respondent company has filed reply to the petition and denied the averments made in the petition. It has been stated that the prayer for seeking winding up is to exert pressure upon the company to enforce payment of debts. In the additional reply filed by the respondent company, it has been stated that prior to the filing of the winding up petition talks and negotiations were going on between the petitioner and the respondent company regarding the actual quantum of the liability of respondent company, the mode of repayment and also about ways of sorting out the differences between the parties. It has also been stated that the respondent company has all the intentions to repay the undisputed amount of debts to its unsecured creditors in a phased manner.

( 7. ) Intervention application has been filed by Maikaal Fibres Shramik Sangathan, Bheelgaon in which it has been stated that the members of the intervenor Sangathan are employees of the company. They and the members of their family are dependent upon the company and if the company is wound they will starve as there are no prospect of employment in the neighbouring areas.

( 8. ) Heard learned counsel for the parties and perused the record.

( 9. ) It has been argued on behalf of the petitioner that the respondent company has not paid its dues in spite of demand being raised. Pointing out to the statement made by the respondent company in the additional reply that undisputed amount shall be paid to the petitioner company in a phased manner it has been argued that in spite of the said stand being taken in the additional reply till date no amount has been paid by the respondent company to the petitioner. In the circumstances, according to the learned counsel for the petitioner, the act of the respondent company clearly establishes that the respondent company is unable to pay its debts and as such the respondent company be ordered to be wound up i