The Tax Publishers 2018 TaxPub(CL) 0788 (Del-HC)

 

Bijay Paper Traders Ltd. v. Ana Print O Grafix (P) Ltd.

 

COMPANIES ACT, 1956

--Company when deemed unable to pay its debts--Acknowledgement of debtsClaim barred by limitation--Whether winding up petition maintainable--Where the claim of petitioner company for recovery of debts was barred by limitation, the winding up petition against the respondent company could not be maintained.--Petitioner company B supplied goods to respondent company and raised invoices. Respondent company had made only part payment of some bills. B issued a statutory notice under sections 433 and 434 to the respondent company but it was returned back with remark 'Left'. Therefore, B filed a winding up petition on the ground that the respondent company was unable to discharge its debts in spite of acknowledgement of debt by way of issuance of C-Form. Respondent company raised objection that there was no liability to discharge its debts as the claims under invoices were barred by limitation. Therefore, winding up petition was not maintainable. Held: B claimed that the respondent company had committed default in payment of some invoices, but the invoices were raised beyond the period of three years. Therefore, the claims under invoices were barred by limitation. Further that, C-Form was mere indication of delivery of goods as per invoice, therefore, it did not constitute an acknowledgement of debts in terms of section 18. Hence, winding up petition was dismissed.

Companies Act, 1956 Section 433, 434 & 439

Limitation Act, 1963 Section 18

Relied:Professional Audio Video Pte. Ltd. v. M-3 Media Private Limited, dated 26-4-2018, Taipack Limited and Ors v. Ram Kishore Nagar Mal, 2007 (3) Arb.LR 402 (Delhi) and Hansa Industries (P) Limited v. M/s. MMTC Ltd. & Anr. 113(2004) DLT 474Referred:Fourseasons Marketing (P) Ltd. v. The Indure Ltd., Co.A.12/2005, decided on 22-11-2007 and Shapoor Freedom Mazda v. Durga Prosad Chamaria & Ors. AIR 1961 SC 1236

REFERRED :

FAVOUR : Against the petitioner.

A.Y. :



IN THE DELHI HIGH COURT

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