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Our Legal Correspondent

Chennai , April 22

THE Madras High Court, after hearing the company petitions filed by two German firms, has ordered winding up of M/s Quantum Industries (India) Ltd, Athipattu Village, Ponneri Taluk, near Chennai, as it defaulted in clearing the debts to the two companies.

Mr Justice K. Raviraja Pandian, who heard the counsel for the German companies, directed the Official Liquidator to take charge of all properties and effects of the Chennai-based company.

The Official Liquidator shall cause a sealed copy of this order to be served on the company.

The ex-directors of the Chennai company were directed to file the statement of affairs within 21 days from the date of receipt of a copy of the court's order.

The petitioners, M/s Renova Plastik-Maschinen GmbH and M/s Oppenheim Forfatt Gmbh of Germany, contended that the respondent company (Quantum Industries) had ordered three machines of German make for manufacturing T-shirt carrier bags and for printing, and they were supplied as per specifications.

Against the total amount due, DM 2,64,315 was paid, leaving a balance of DM 18,34,786.59. The cheques issued by the respondent company in respect of the said sum were dishonoured. After due deliberation, the respondent admitted its liability by its letter dated July 3, 1997 to pay the balance amount. Even after that, the respondent was not able to meet its commitment. Hence, the petitioners filed the company petition for winding up of the respondent company.

The respondent company, in its counter, submitted that the petition could not be maintained as there was some dispute about the quality of the machines supplied.

The judge said a perusal of the letter dated May 12, 1997 showed that there was nothing other than a piece of information by the respondent that the printing machine supplied was an overhauled machine. Even after making such an information, the respondent accepted their liability by stating that the delay in making payment was only due to the delay in construction and completion of the factory building, customs clearance of the imported machines and obtaining power supply from the Government agencies.

In the absence of any other defence, and since the one and only defence taken by the respondent that there were certain disputes as to the liability of the respondent was also eschewed by this court as not legally sustainable, the resultant position was to come to a conclusion that the respondent was not in a position to discharge its liability, and it was fair and equitable to pass orders for dissolution of the respondent company, the judge held.

The respondent company was hereby wound up by this court under the provisions of the Companies Act.

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